McNally Capital and Black Coral Capital said a consortium of 11 wealthy U.S. families, including the families behind their respective operations, have formed the Cleantech Syndicate to invest in cleantech startups and projects. The families expect that 17 professional investors will invest $1.4 billion of their private capital over the next five years. Other than the McNally family, none of the families were named.
NEW CLEANTECH SYNDICATE TO INVEST IN CLEAN AND RENEWABLE ENERGY SPACE
Eleven families form a $1.4 billion “virtual private equity fund”
CHICAGO – June 22, 2011 – McNally Capital, LLC and Black Coral Capital announced today the formation of the Cleantech Syndicate, a consortium of 11 prominent families from across the United States representing a collective net worth in excess of $30 billion. The Cleantech Syndicate was formed to enable its members to share capital, deal flow, knowledge and networks as they continue to invest in and support Cleantech companies. The members, and their collective investment team of 17 dedicated professionals, plan to invest $1.4 billion of their private capital in Cleantech companies over the next five years. This is the largest pool of dedicated capital to the Cleantech space.
Prior to the Syndicate’s formation, over the past five years its members and their affiliates have collectively invested over $1.2 billion directly into privately held Cleantech businesses and have been important investors in some of the most notable Cleantech success stories. The backgrounds of the members include: developers of utility-scale wind and solar generation facilities, founders of solar technology companies, and owners/operators of large real estate properties and fleets of industrial vehicles looking to enhance efficiency. They have extensive operating and investment experience across all subsectors and stages of Cleantech investing, from seed-stage venture capital to project finance.
“The Cleantech Syndicate is the first vehicle of its kind to fully tap into the collective expertise of multiple families,” said Ward McNally, managing partner of McNally Capital. “By working together and sharing capital and investment opportunities, the Syndicate’s members can achieve exceptional scale and act cooperatively to accomplish their long-term investment objectives. Family offices with deep and complementary expertise in an industry have a unique investment advantage, especially given their indeterminate hold period.”
Christian Zabbal, managing director of Black Coral, added: “Families have been investing in the Cleantech space for many years. The Cleantech Syndicate is a natural evolution for us – a way to pool our experience and networks with those of other like-minded family offices and create partnerships that will support better, stronger Cleantech and green energy companies.”
The Syndicate members are active, long-term capital partners for management teams seeking operational value-add from highly knowledgeable investors. The Cleantech Syndicate is establishing a network of partners to support their efforts, including corporations, sovereign wealth funds, endowments and other parties interested in collaborating with the Cleantech Syndicate for knowledge, access and capital. Later this year, the Cleantech Syndicate plans to launch a European Cleantech Syndicate, as well as a U.S. co-investment vehicle that will allow selected non-Syndicate members to invest alongside the members.
About McNally Capital
McNally Capital works directly with family offices to help them make and manage their investments in private companies and private equity funds. The Firm also invests alongside its clients through direct co-investment and through its proprietary fund vehicles. At the core of everything the firm does is an extensive network of more than 350 family offices, which generates unparalleled access to capital and expertise. For more information please visit: www.mcnallycapital.com.
About Black Coral Capital
Black Coral Capital is a family office which invests in funds, companies, and projects in the Cleantech and renewable energy space. Black Coral Capital backs superior management teams across a number of areas such as energy efficiency and the solar supply chain, and invests at all stages of growth from early stage to growth capital. For more information please visit: www.blackcoralcapital.com.
About The Cleantech Syndicate
The Cleantech Syndicate was co-founded by McNally Capital, LLC and Black Coral Capital to bring large, sophisticated Cleantech investors together to share capital, deal flow, knowledge and networks to promote and increase their support of clean energy companies. To date, the 11 members of the Cleantech Syndicate have collectively invested over $1.2 billion and are seeking to invest an additional $1.4 billion directly into other clean and renewable energy companies. The members have extensive operating and investment experience across all subsectors and stages of Cleantech and are interested in investing directly into companies where they can bring value to management teams. For more information please visit: www.cleantech-syndicate.com.