Clean Growth Fund secures $110 million from UK pension funds

The Clean Growth Fund has secured approximately $110 million (£81.5 million) in commitments for its second fund, surpassing the halfway mark of its £150 million ($202 million) target. The fund focuses on early-stage UK climate technology companies, specifically targeting investments from Seed to Series A in sectors such as batteries, food systems, heavy industry, and the built environment.

Key institutional investors include the Border to Coast Pensions Partnership, which provided a £22.5 million ($30.3 million) anchor commitment through its UK Opportunities Fund, and the Strathclyde Pension Fund, which increased its total allocation to approximately $40.7 million (£30 million). Other participants include the Islington and East Riding pension funds.

The fund aims to deliver a 20% net internal rate of return while supporting domestic decarbonisation and economic expansion. Founder and Managing Partner Beverley Gower-Jones stated that institutional investors are increasingly seeking the dual promise of strong long-term financial returns and measurable environmental impact through UK-based climate innovation.