Cleantech Fund Performance Might Surprise

Cleantech funds are hardly barnburners, but it is interesting to note that many may have performance multiples of at least capital invested.

This is according to Preqin, which in a recent report found the median multiple for cleantech funds is above 1.00x. The company compares distributions and fund value with cash invested.

The company said it monitors 219 funds with vintages of 2002 to 2010. The only year for which the median multiple is below 1.00x is 2010, and for this vintage it is 0.99x, the report finds. Obviously 2010 funds are at an early stage and performance can be expected to improve.

“The highest median multiple produced is by vintage 2003 funds, which have 1.26x paid-in capital,” Preqin says.

For funds making investments in the United States, the report finds a 1.07x multiple on contributed capital while European funds are at 1.00x.

It is likely much of the value of cleantech funds remains in portfolio holdings instead of distributed cash, since exit markets have been slow to materialize. But with several cleantech IPOs lining up, including potential offerings from Silver Spring Networks, BrightSource Energy and Enphase Energy, this could begin to change.

(Photo by ssuaphotos/Shutterstock)