Longbow Capital raises initial C$114m for energy transition fund

Canadian private equity firm Longbow Capital has held an initial close for its energy transition fund, securing C$114 million.

Canadian private equity firm Longbow Capital has held an initial close for its energy transition fund, securing C$114 million. Longbow Energy Transition Fund was anchored by BDC Capital, TD Bank Group and Caterpillar Ventures, with additional commitments coming from institutions and family offices. Focused on investing in companies that that help lower carbon emissions, the fund is targeting C$150 to C$200 million. It is expected to wrap up this fall.

PRESS RELEASE

Longbow Capital completes initial closing of the Longbow Energy Transition Fund with $114 million of committed capital

CALGARY, AB, Nov. 4, 2021 /CNW/ – Longbow Capital, a Calgary based private equity investment manager with a 24 year track record and approximately $680 million of assets under management announces the initial closing of the Longbow Energy Transition Fund (the “Fund”) with $114 million in capital commitments from leading institutional and family office investors. BDC Capital, TD Bank Group and Caterpillar Ventures are anchor investors in the Fund.

The Longbow Energy Transition Fund has a total funding target of $150 to $200 million and is anticipated to complete its final close this fall. The Fund has a North American mandate to invest in businesses that are expected to benefit from the momentum behind the energy transition, with a focus on companies that help lower carbon emissions through efficient, cost effective and environmentally responsible solutions.

Tyson Birchall, Managing Director, commented, “The world has spent the last 250 years and hundreds of trillions of dollars developing the current global energy infrastructure, which today is still 83% powered by hydrocarbons. Governments, capital markets and major corporations have committed to fundamentally reshaping this energy system in the next thirty years. This will undoubtably be the largest single capital spending theme for the foreseeable future and an ideal environment to scale innovative, next generation businesses that have the ability to help the world achieve its goal.”

In support of the Fund’s investment strategy, Longbow is also pleased to announce the addition of five distinguished Industry Advisory Board members that bring a diverse set of experiences and relationships that will be invaluable when sourcing and evaluating opportunities.

Radha Curpen, Vancouver, British Columbia – Radha is managing partner of the Bennett Jones Vancouver office and co-head of the firm’s Environmental Law and Aboriginal Law practices. With over 30 years of legal and advisory experience, Radha specializes in providing strategic counsel to clients related to the environment, relationships with Indigenous communities, wider ESG matters, gender equity issues, and the handling, transportation, and remediation of hazardous materials. Radha is called to the Bars of British Columbia, Ontario, New York and Manitoba. She advises clients across Canada in both official languages.

Irfhan Rawji, Calgary, Alberta – Mr. Rawji is an experienced institutional private equity investor, having previously worked with McKinsey & Company, Birch Hill Equity Partners, Onex Corporation and in his current role as a Managing Partner of Relay Ventures. Irfhan holds an MBA with High Honors from Harvard Business School, where he was a Baker Scholar, and a BCom with High Honours from the University of British Columbia, where he was a Wesbrook Scholar.

Dan Balaban, Calgary, Alberta – Mr Balaban is the co-founder and CEO of Greengate Power, one of the oldest and most successful private developers of renewable power in Western Canada, having completed the development of the largest wind farm ever built in Alberta and currently leading the development of the largest solar farm development in Canadian history. Dan has been a serial entrepreneur and previously worked as a management consultant for two of the big four accounting firms. Dan earned his Bachelor of Science from the University of Toronto.

Larry Kelly, Palo Alto, California – Mr. Kelly is a serial entrepreneur and has worked in many aspects of the information technology industry. He currently chairs the energy special interest group for the Band of Angels, a California based early-stage investment group that was established in 1994 and has over 165 members including many leading California based VC investors and entrepreneurs. Mr. Kelly received an SB in Mechanical Engineering and an SM in Nuclear Science and Engineering from MIT and an MBA from Harvard.

Amy West, New York, New York – Amy West is Managing Director and Global Head of the TD Securities Sustainable Finance & Corporate Transitions team. In her role, Amy works with corporate and institutional clients across Global Banking & Markets to provide Environmental, Social, and Governance advice and solutions. Prior to joining TD in 2013, Amy worked at HSBC and RBS in investment banking and debt capital markets. Amy earned her Bachelor of Science from Miami University, where she was an Oxford scholar.

Lily Lam, Director of Fund Investments at BDC Capital, said, “A greener future is on the horizon. It is very important to BDC Capital to support the transition to a low-carbon economy in line with Canada’s Paris Agreement goals and we are delighted to do so with an established growth equity investor in the sector”. “We are confident that Longbow’s deep networks and expertise in scaling compelling, innovative businesses that address environmental challenges will secure their competitiveness and generate strong returns for the Fund”.

“With our investment in the Longbow Energy Transition Fund, we are pleased to support the entrepreneurs who will help drive the advancement of the energy transition,” said Drew MacIntyre, Vice Chair, TD Securities. “This investment is made possible by the TD Ready Commitment, the Bank’s corporate citizenship platform, which supports the transition to a lower carbon future and contributes to building a more sustainable tomorrow.”

Art Robinson, Managing Director, added, “This is a very exciting time to be investing in the energy transition space. There has been a fundamental shift in the way energy producers, consumers and capital markets view energy. This a broad and transformative change and it is clear this will be a significant long term investment opportunity.”

About Longbow Capital
Longbow Capital is a Calgary based private equity investment manager that was founded in 1997 and has been a leading investor in the Canadian energy and energy technology sector. Longbow currently has approximately $680 million of assets under administration spanning many aspects of the energy and power sector including energy and power production, infrastructure, services and technology. Visit longbowcapital.com

About BDC Capital
BDC Capital is the investment arm of BDC- Canada’s only bank devoted exclusively to entrepreneurs. With over $3 billion under management, BDC Capital serves as a strategic partner to the country’s most innovative firms. It offers a full spectrum of risk capital, from seed investments to transition capital, supporting Canadian entrepreneurs who wish to scale their businesses into global champions. Visit bdc.ca/capital.

About TD Bank Group
The Toronto-Dominion Bank and its subsidiaries are collectively known as TD Bank Group (“TD” or the “Bank”). TD is the fifth largest bank in North America by assets and serves more than 26 million customers in three key businesses operating in a number of locations in financial centres around the globe: Canadian Retail, including TD Canada Trust, TD Auto Finance Canada, TD Wealth (Canada), TD Direct Investing, and TD Insurance; U.S. Retail, including TD Bank, America’s Most Convenient Bank®, TD Auto Finance U.S., TD Wealth (U.S.), and an investment in The Charles Schwab Corporation; and Wholesale Banking, including TD Securities. TD also ranks among the world’s leading online financial services firms, with more than 15 million active online and mobile customers. TD had CDN$1.7 trillion in assets on July 31, 2021. The Toronto-Dominion Bank trades under the symbol “TD” on the Toronto and New York Stock Exchanges.