Cycle Capital Management, a Montréal-based clean technology venture capital firm, has raised $109 million in the initial close of its fourth fund.
Cycle Capital Fund IV secured commitments from a range of investors, including a $50 million contribution from Investissement Québec.
Other limited partners included Teralys Capital, Fonds de solidarité FTQ, Fondaction, Suez, Hydro-Québec, Innergex Renewable Energy, McConnell Foundation, Rio Tinto, Vancity and Trottier Family Foundation.
The fund, which aims to raise up to $250 million, according to the Globe and Mail, will invest in Canadian and U.S. growth-stage companies.
Target sectors include energy storage and efficiency, green chemistry, clean transportation and smart city technologies, green internet of things, big data and artificial intelligence, and agricultural technologies.
Photo: Andrée-Lise Méthot, founder and managing partner, Cycle Capital Management.
Cycle Capital announces first close for new $109M Fund
The Fund will focus on growth stage innovative cleantech companies
Montreal and Toronto, Monday, February 11, 2019 – Cycle Capital, Canada’s largest clean technology venture capital investment platform, announced the first close of its new Fund, Cycle Capital Fund IV, LP. The announcement was made by Andrée-Lise Méthot, Founder and Managing Partner of Cycle Capital, alongside Pierre Fitzgibbon, Quebec’s Minister of Economy and Innovation and the fund’s sponsors.
The Government of Quebec is contributing $50 million through its authorized representative, Investissement Québec. The other investors are Teralys Capital, Fonds de solidarité FTQ, Fondaction, Suez, Hydro-Québec, Innergex Renewable Energy, McConnell Foundation, Rio Tinto, Vancity credit union, Trottier Family Foundation, several individuals and Cycle Capital managers.
Cycle Capital Fund IV will target innovative cleantech companies. The fund will invest across North America, with a primarily focus on Canada, in key technology sectors such as energy storage and efficiency, green chemistry, clean transportation and smart city technologies, Green IoT, Big Data & AI and agtech.
“The environment and clean technologies industry play a significant role in the Québec economy. By participating in the capitalization of the Cycle Capital Fund IV, the government is confirming its commitment to an approach aimed at making Québec more efficient, more innovative and greener. Such participation will foster business growth in Québec and the marketing of our innovations in a healthy environment,” Minister of Economy and Innovation Pierre Fitzgibbon noted.
“As a long-standing strategic partner for Cycle Capital, Rio Tinto is pleased to renew its support through this latest fund. This is one of the many ways Rio Tinto is promoting the development of clean technology and innovation to encourage a circular economy. Elysis, our joint venture with Alcoa that aims to commercialize a carbon-free aluminium smelting process, is an example of the type of step change technology we hope to see this fund foster,” declared Gervais Jacques, Managing Director Rio Tinto Aluminium Atlantic Operations.
“The ecological health of our planet requires bold solutions and innovative technologies. The Cycle Capital Fund IV is bringing clean energy technologies to market – advancing the Canadian economy and enabling us to transition to a low-carbon future. We appreciate Cycle Capital’s leadership in this sector, and are pleased to be investing in this fund,” said Stephen Huddart, President and CEO of the McConnell Foundation.
“Increasing our AUM close to half a billion will allow Cycle Capital to bring innovative clean solutions to market, connect talented entrepreneurs with an extensive network of leading industrial companies and drive solid financial returns,” said Andrée-Lise Méthot, Founder and Managing Partner of Cycle Capital. “Cycle’s team is thankful for the strong support from the investor community. These leading industrial, corporate, financial institution, family office/impact investors and individual investors, bring a great deal of value and a wide variety of expertise and best practices.
The Fund will benefit from Cycle Capital’s seasoned venture capital investment team and active presence in the Canadian and global cleantech ecosystems, as well as from the synergies, deal flow and investment insights produced by Cycle’s years of experience and leading position in the Canadian cleantech investment ecosystem. To date, Cycle Capital has invested $200M and leveraged $1.2B in equity in its portfolio companies.
Cycle Capital Management
Cycle Capital Management (CCM) is an impact investor and Canada’s largest cleantech venture capital investment platform with AUM (assets under management) close to $0.5B. With offices in Montreal, Toronto and Qingdao – in continental China – and a presence in New York and Seattle, CCM invests in companies at the development and growth stages that commercialize clean technologies that reduce greenhouse gas emissions, optimize resource use and improve process efficiency throughout North America and China. CCM is also the Founder of the Ecofuel Accelerator and the Co-Founder of the Ecofuel Fund.
CCM brings together seasoned investment professionals, strategic advisors and industrial partners with in-depth knowledge of the sector. The firm has a number of industrials including Suez, Rio Tinto, Hydro-Québec, Brookfield, Innergex Renewable Energy, Énergir, Cascades, Lonza, Aluminerie Alouette, Qingdao City Construction Investment Group and impact investors such as Vancity credit union, McConnell Foundation and Trottier Family Foundation as strategic partners. For more information on Cycle Capital, visit: cyclecapital.com.
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