Carbon Equity has waded into debt financing.
The Netherlands-based firm announced today the launch of a private debt fund targeting energy transition projects in Europe.
Like most of Carbon Equity’s offerings, the debt vehicle is a fund-of-funds. It will invest in at least three specialist European infrastructure debt funds on behalf of investors, which in turn make loans to 45–60 underlying projects.
“For the first time, our investors can get access to infrastructure lending instead of equity,” the company wrote on LinkedIn. “That means stronger downside protection, predictable cash flows, and less dependence on market sentiment, compared to our other funds.”
Target assets include solar parks, wind farms, battery storage and biomethane plants. Europe accounts for 95% of the allocation. Energy generation takes 85% of the portfolio, storage 10%, according to the firm’s website.
The fund targets 7–8% net IRR over an eight-year life. Minimum ticket is €100,000. First cash distributions are expected within 12 months of final close – earlier than Carbon Equity's equity vehicles, which return capital only on exit.
“Electricity demand is surging and Europe is racing to build strategic energy independence,” the company said. “At the same time, traditional banks are pulling back from infrastructure lending, leaving a gap for specialist debt funds.”
No target fund size has been disclosed. It is unclear whether a first close has been reached, which underlying debt funds Carbon Equity intends to back, or who the anchor LPs are.
We were unable to reach Carbon Equity prior to publication.
The launch is the firm's second new product in under 6 months. In December, Impact Loop reported the firm had moved into direct company investing with a €50m co-investment vehicle.
Carbon Equity now manages more than €300m across more than 900 investors. It has backed more than 200 portfolio companies via 25 underlying funds, including Energy Impact Partners, Lightrock and 2150.
The firm was founded in Amsterdam in 2021 by Jacqueline van den Ende, Jeff Gomez, Lara Koole and Liza Rubinstein.