Clean Growth Fund II hits £81.5M at second close towards £150M target

UK climate tech investor Clean Growth Fund has announced the second close of Fund II, bringing total commitments to £81.5 million as it works towards a £150 million target.

The second close was anchored by a £22.5 million commitment from Border to Coast Pensions Partnership's UK Opportunities Fund, which was launched in 2024 to invest in UK companies and assets while seeking long-term returns for its Local Government Pension Scheme (LGPS) Partner Funds. Strathclyde Pension Fund, which has backed Clean Growth Fund since its first fund, made a further £10 million commitment, taking its total commitment to Fund II to £30 million. Other investors include Islington Pension Fund and East Riding Pension Fund.

Clean Growth Fund II is targeting seed to Series A companies developing technologies with the potential to reduce carbon emissions and support the UK's transition to a lower-carbon economy. The fund plans to invest in around 25 companies.

Fund II has so far invested in four startups based in Sheffield, Bristol, Cardiff and London, working across battery technology, food, heavy industry and buildings. Clean Growth Fund follows a place-based investment strategy, backing companies in established technology centres such as Oxford, Cambridge and London, as well as emerging innovation hubs across the UK.

Beverley Gower-Jones OBE, founder and managing partner of Clean Growth Fund, said the latest commitments take Fund II beyond the halfway point towards its target and reflect growing institutional interest in the UK's climate technology sector.

We exist to connect British institutional capital with British innovation — the returns and the impact go hand-in-hand,

she said.

Keith Angood, portfolio manager at Border to Coast Pensions Partnership, said the investment aligns with the UK Opportunities Fund's focus on UK companies and assets that can generate long-term returns while contributing to domestic economic growth:

Clean Growth Fund II strongly matches these objectives, providing exposure to innovative UK businesses operating in a growing sector, managed by an experienced team with a proven track record. We believe it offers an attractive opportunity to deliver long-term value for our Partner Funds while supporting UK innovation.

The second close follows Clean Growth Fund's exit from clean heat network developer Rendesco in May 2026, when the company secured £100 million in new investment from Pioneer Point Partners.