As global investment in clean energy reached a record $2.1 trillion in 2024, Aligned Climate Capital (Aligned) successfully closed its second venture fund, Aligned Climate Fund 2 LP (ACF2), at $85 million. This fund, double the size of Aligned’s first, focuses on scaling proven clean energy and decarbonization solutions. It invests in sectors such as renewable energy, resilient infrastructure, electric transportation, and sustainable land use. Key investors include the Ford Foundation, The Rockefeller Foundation, and a mix of pensions, corporations, endowments, foundations, and family offices. To date, Aligned has raised $145 million through its venture strategy.
ACF2 exclusively backs Seed through Series B companies that are already deploying viable clean energy solutions. These companies help lower energy costs, expand renewable energy adoption, and improve access to electric vehicles and other sustainability-focused technologies. So far, Aligned has invested in nine companies through ACF2, including BoxPower, BrightNight, CarbonQuest, ChargerHelp!, EVenergi, NYLE Water Heating Systems, Port Wind, UtilityAPI, and an undisclosed geothermal company.
Peter Davidson, CEO of Aligned Climate Capital, said in a statement, “The clean energy transition isn’t a technology challenge; it’s a deployment challenge. The solutions needed to decarbonize the economy already exist, but scaling them requires capital, expertise, and market access. Our venture fund is investing in companies accelerating this transition by deploying proven clean energy technologies that are already outcompeting fossil fuels and delivering real impact today.”
Roy Swan, Head of Mission Investments at the Ford Foundation, also added, “The transition to clean energy has the potential to generate new, high-quality jobs for hardworking families while laying the foundation for sustainable progress that will serve our communities for generations to come. We are excited to partner with Aligned as they invest in businesses that support families, strengthen communities, and protect the planet.”
Beyond financial support, Aligned actively helps its portfolio companies secure additional funding, develop partnerships, and accelerate commercialization. Its investment strategy prioritizes companies capable of scaling quickly and achieving profitability in the near term, avoiding long R&D and commercialization timelines. This approach aims to generate strong, short-term returns while driving clean energy adoption.
“The Rockefeller Foundation is committed to advancing economic growth by supporting investments that bridge the gap between innovation and large-scale deployment. Aligned’s hybrid approach reduces risk while expanding clean energy access, making proven technologies more impactful for U.S. communities adapting to a changing energy landscape,” commented Maria Kozloski, Senior Vice President at The Rockefeller Foundation.
Aligned also integrates environmental, social, and governance (ESG) principles into its investment process, ensuring financial success aligns with sustainability and emissions reductions. Additionally, 3% of ACF2’s carried interest has been donated to three climate-focused nonprofits: The Honnold Foundation, which provides solar energy access to underserved communities; the Climate & Clean Energy Equity Fund, supporting grassroots climate justice initiatives; and Impact Capital Managers, which promotes collaboration in impact investing.
){kind=link}
