EUROPEAN PE MARKET – Q2 2024: CLIMATE TECH CONSOLIDATES ITS POSITION BOTH ON DEAL AND GP LEVEL

From a general perspective, most European GPs were still on a defensive position during H1 2024, investing more in their existing portfolio rather than in new companies:

Cleantech is shining with €15.4Bn deal value, which is already the 3^rd best year registered ever:

This Cleantech dynamic is led be renewable energies, notably with 4 companies representing a cumulative €7.3Bn valuation: Neoen, Terna Energy, Atlantica Sustainable Infrastructure and OX2[1]. The weight of that industry in PE transactions will probably keep growing, since i) fossil fuels are still far above renewable energies in the European mix[2] ii) renewable energies is getting more important upstream, in the funds raised by venture GPs:

These 3% represent $3.4Bn raised by VC Climate funds, which is the third-best year since 2013 with an annualized view[3]. Even this share of climate funds is still relatively narrow, their fundraising amount has been growing faster than the global VC ecosystem in the US and in Europe from 2014 to 2023: 20% CAGR for climate VC funds[4] against only 7% for the broader market[5].

[1] Source: Pitchbook, Q2 2024 European PE breakdown

[2] Source: Eurostat, 2022

[3] Source: PitchBook, 2024 Climate Tech Funds Report

[4] Source: PitchBook, 2024 Climate Tech Funds Report

[5] Sources: Pitchbook Q2 2024 US Venture Monitor and Pitchbook European Private Capital Outlook 2024