Sustainability and clean energy have been gaining prominence for the past two decades, but today’s complex geopolitical dynamics and rapid technological advances have added new dimensions to the road ahead.
Investment in cleantech alongside traditional carbon-based sources is expected to continue risingsupported in the U.S. by the monumental Infrastructure Investment and Jobs Act and the Inflation Reduction Act.
To better understand the evolving trends in the energy sector and the future of cleantech investment, we surveyed 200 private equity (PE) and corporate executives to find out more. This survey provides an in-depth analysis of the latest trends in cleantech investment, exploring the opportunities and challenges facing investors in this rapidly evolving sector.
The report focuses primarily on the drivers and barriers to success in the cleantech industry. It provides valuable insights into the current state of renewable energy and attendant technologies, the challenges of integrating and creating value from cleantech solutions, and the target sectors and markets that are driving capital into the sector. Amid so much change, investors must quickly find their bearings to capitalize fully on this generational opportunity as countries around the world move to decarbonize their energy mix.
“Cleantech has emerged from a niche infrastructure fund to an area where many investors are evaluating the themes and opportunities across each of their industry vertical teams that will benefit from the growth, tax advantages, and clean energy tailwinds,” said Keith Campbell, a senior partner in West Monroe’s M&A practice.
In Q1 2023, Mergermarket surveyed 200 senior executives via phone with expertise in the energy space to understand the appetite and drivers for investments in the cleantech space both now and in the future. Half of respondents were based in the US, and half in Europe, and were drawn equally from PE firms and corporates.
All respondent organizations who were qualified for to take the survey had acquired or sold at least one company in the cleantech space (i.e., the investment asset class, technology, and business sectors, which include clean energy, environmental, and renewable or green, products and services) over the last three years and intend to acquire or sell at least one over the next three years. The survey included a combination of qualitative and quantitative questions. Results were analyzed and collated by Mergermarket. All responses are anonymized and presented in aggregate. Whenever statically relevant, responses are also split by region or type of respondents.
Keith leads the firm’s highly skilled divestiture & carve-out center of excellence within M&A. He is also a father of three young girls.
With expertise in operationalizing the clean energy transition, Jeremy leads next-generation grid initiatives that go well beyond utility infrastructure.
With a focus on driving enterprise value for his clients, Scott builds collaborative and cross-functional teams.