Queensland government joins cornerstone investors in backing of major climate tech fund

The Queensland Investment Corporation (QIC) will join with cornerstone investors Westpac and the Clean Energy Finance Corporation (CEFC) in Virescent Ventures’ second climate technology fund (Fund II).

Virescent Ventures bills itself as Australia’s largest and most active dedicated climate technology investor and was born out of the Clean Energy Innovation Fund under the Clean Energy Finance Corporation (CEFC) in 2022 to support net zero technology innovators.

The specialist climate investment fund completed a $100 million first close of its second climate technology investment fund (Fund II) in early October, which secured the support of over 50 investors including cornerstone investors Westpac and the CEFC.

QIC, one of the largest institutional investment managers in Australia, announced on Tuesday that it had joined as a major investor in Fund II alongside a raft of new commitments which takes the first close of the new fund to approximately $125 million.

“Partnering with Virescent represents an opportunity for QIC to work with an Australian-based climate manager to meaningfully advance the global transition to net zero,” said Lottie Bryon, investment director at QIC.

“Their CEFC heritage affords Virescent deep expertise and touch points into the clean energy sector, producing a unique origination model that delivers attractive investment opportunities.

“Acknowledging the significant investment required to reach net zero, providing early-stage companies with growth capital to realise opportunities in this enduring secular trend sits at the core of QIC’s climate mandate strategy.”

Ultimately, Fund II is aiming to deploy $200 million into innovative climate tech companies and follows hot on the heels of Virescent Ventures’ first portfolio, managed on behalf of the CEFC, which has so far seen the deployment of more than $270 million across 37 world-leading Australian climate tech investments.

“We’re thrilled to have the backing of QIC as we complete our first, soon to be announced, investment from our second climate technology fund,” said Kristin Vaughan, managing partner of Virescent Ventures.

“QIC brings a global presence, cross sector expertise and deep financial market insights to Fund II, which will be invaluable as we invest in market-leading climate tech start-ups.”

“The calibre of investors backing Fund II shows the confidence major public and private investors have in Virescent and our track record, and the opportunities in Australian climate tech.

“With abundant natural resources, significant human capital and a steady regulatory environment, Australia has an immense opportunity to be a global leader in climate technology innovation and commercialisation.”