London, 21 February 2024 – Redwheel, the specialist independent investment manager, today announces its strategic partnership with Turquoise, the UK’s longest established specialist in ClimateTech venture investments. The partnership’s project will be a growth stage UK ClimateTech venture fund (subject to regulatory approval), focused on easing the shortage of growth capital for UK companies with technology or services that address environmental challenges and promote sustainability in order to deliver measurable impact.
The Redwheel-Turquoise investment team will aim to identify promising post-revenue and growth stage companies with demonstrated potential to disrupt their industries in the near term. The strategy will be centred around three key sectors; energy; transport and mobility; and resource efficiency.
Tord Stallvik, CEO of Redwheel, said: “We anticipate that the global transition towards a more sustainable future will yield attractive investment opportunities for decades to come. This partnership and extension into the private sphere is a natural progression from the launch of the Redwheel Clean Economy strategy in 2023, capitalising on the opportunity in public markets.”
“Turquoise’s experience in private ClimateTech investments, with a 21-year track record of over 140 completed transactions, make it an ideal partner for Redwheel as we aim to identify opportunities with potential for strong financial returns and measurable positive climate impact.”
Ali Naini, Managing Director of Turquoise, said: “Our experience in over two decades has been that the UK has no shortage of ClimateTech innovations with strong commercial potential. Nor is there a shortage of government backing and early-stage investors. The problem arises when these companies need growth capital to build their first plant, expand their team or scale internationally. That is where the UK has traditionally had a shortage of capital. The partnership with Redwheel allows us to combine its access to institutional capital with our access to corporate investors to create a fund that is willing to lead investments and help take companies to the next stage. Together with Redwheel, we look forward to contributing to the advancement of clean and sustainable technologies that will shape a more environmentally resilient future.”
The outlook for the ClimateTech sector is driven by favourable, long-term macro trends including a supportive UK policy environment, increasing backing from large corporates with Net Zero Commitments and advancements in technology. It is estimated that the UK will require £1.4 trillion of new investment in the next 30 years (in real terms) to reduce net emissions to zero 1 , creating a huge potential growth-capital opportunity.
The Redwheel Turquoise ClimateTech Fund’s experienced investment committee will include Independent Chairman Professor John Loughhead (previously Chief Scientific Adviser for the UK Ministry for Business Energy and Industrial Strategy), Redwheel’s Clean Economy Portfolio Manager Amanda O’Toole, and three Turquoise Managing Directors.
For more information, please contact
For Redwheel:
Montfort Communications
redwheel@montfort.london
+44(0)7885 654 636
For Turquoise:
Prova PR
turquoise@provapr.co.uk
+44 (0)7793 356 008
Notes to Editor
About Redwheel
Redwheel is a specialist, independent investment manager with an active investment heritage built on a foundation of innovation, original thought and high conviction.
The business was established in 2000 with the ambition to create an environment in which exceptional fund managers can operate with a high degree of investment autonomy and maximise the benefits of their skills over the long-term.
The seven investment teams specialise in providing Sustainable & Thematic Equities, Active Engagement, Emerging Markets, Value & Income and Convertible Bonds. A total of $17.2bn (as at 31st January 2024) is managed across these strategies on behalf of clients who include some of the foremost global institutions and advisors. With more than 170 people, including 57 dedicated investment professionals, Redwheel has offices in London, Miami, and Singapore.
Each of the investment teams has acknowledged expertise in their specific fields. Their autonomy is underpinned by a simple and attractive revenue share model, which unites the business and aligns each team with its client base. All non-investment functions are centrally managed, ensuring that the governance and risk functions operate independently. The business is itself independent and privately owned, with a disciplined and engaged non-executive board and a majority employee shareholder base.
There is a constant focus on being long term in everything that the team does and how the business is structured. This focus helps to ensure alignment with investors in delivering successful long-term outcomes and underpins Redwheel’s commitment to be responsible investors.
Redwheel is the operating brand of RWC Partners. This change of operating brand name was announced in January 2022.
About Turquoise
Turquoise International Limited (“Turquoise“) was established in 2002 to specialise in ClimateTech, in which it is a leading investor and adviser. Turquoise has a track record spanning 21 years in venture capital investing, capital raising and M&A advisory, during which time it has completed over 140 ClimateTech transactions, and has a current investment portfolio of 37 companies. Turquoise’s team of 12 highly experienced investment professionals is supported by a network of advisers with expertise across the climate technology landscape.
Turquoise’s most recent fund, the Low Carbon Innovation Fund 2 LP (“LCIF2”), is now in its realisation period. Other notable investment mandates include the fund preceding LCIF2, and Turquoise’s 10-year role as exclusive investment advisor for Anglo Platinum’s corporate venturing activities. Turquoise also makes principal investments via Turquoise Capital LLP.
Turquoise’s in-house corporate finance advisory capability is included in the service provided by Turquoise to its fund management clients, and is a key enabler for Turquoise’s ability to act as a lead investor. It also acts as an additional feeder route of potential investment opportunities to Turquoise funds.