Generation Investment Closes $1B Fund to Scale Climate Solutions

Generation Investment Management has closed its Sustainable Private Equity Fund II, raising over $1 billion. The fund targets companies that can scale climate impact through existing workflows. Investors are increasingly backing sustainability-focused growth opportunities. SPEF II will focus on 'sustainability platforms' that shape how major industries operate. Its strategy involves integrating climate solutions into core infrastructure, such as software, data systems, and distribution networks.

Three initial investments have been announced: Octopus Energy, Kraken Technologies, and IFS. Octopus Energy, operating in over 25 countries, provides energy retail, services, and renewable power generation. Kraken Technologies, a spin-out from Octopus Energy, serves over 70 million household and business accounts worldwide.

IFS, an enterprise software company, could help reduce around 2% of global carbon emissions if widely adopted. The fund aims to partner with mission-driven businesses to embed sustainability into key sectors. The fund’s closure highlights strong institutional interest in climate-aligned investments. SPEF II will support businesses that drive large-scale sustainability through their existing operations. The investments in Octopus Energy, Kraken Technologies, and IFS mark its first steps in this direction.