Richmond Mayo-smith

Divestment requirements have a very real cost. This reduces the ability of endowments and foundations to support their mission driven enterprises. As the list of divestment demands grow, at what point do the consequences outweigh the perceived benefits? Hiding at the end of this article is the below quote: Golden admitted the divestment had undermined Princo’s returns, saying the endowment “would have been better off” otherwise. But he pointed to a bigger concern: the pressure to “keep adding things to divest from”. “Fossil fuels are necessarily part of getting to where the overall economy needs to be [and] it would be impossible for the world to not use fossil fuels tomorrow,” he said. “Divestment is a pretty weak tool to change the economy.” https://lnkd.in/g3SeC8rg #energy #investing #vc

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Ever wonder how the U.S. became a global economic powerhouse? The answer lies in bold infrastructure investments. In my upcoming talk for the Cornell Program in Infrastructure Policy (CPIP), I'll delve into the significance of projects like the Erie Canal, the Transcontinental Railroad, the Panama Canal, and the Interstate Highway System. These weren't just engineering feats; they catalyzed economic growth, interregional connectivity, and global influence. Join me to explore practical lessons for today's infrastructure needs from the visionary leadership and innovative financing and funding techniques behind these projects. #infrastructure #economicdevelopment #leadership #innovation #buildingAmerica

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🌍💡 Embracing Interoperability: The Evolution of Carbon Markets 💡🌍 The landscape of carbon markets is rapidly evolving, with a significant shift towards fungibility and interoperability. What does this mean? We (at the SoHo Global Climate Fund) spoke with leading climate fund manager, Charles Bedford of Carbon Growth Partners, to shed light on this important trend in the carbon markets. It's about creating seamless connections between compliance and voluntary markets, allowing for the exchange and recognition of carbon credits across borders and sectors. This trend marks a pivotal moment in our collective efforts towards combating climate change. By enabling carbon credits to be fungible and interoperable, we're fostering a more efficient and scalable approach to carbon pricing and emissions reduction strategies. Companies and organizations now have greater flexibility to participate in markets that align with their goals. #CarbonMarkets #ClimateAction #Fungibility #Interoperability #Sustainability #Innovation #GlobalImpact

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Despite a decline in overall venture capital exit activity in 2023, climate tech markets showed resilience, with investment deal activity falling by only 14% since the outlier years of 2021 and 2022; during those years, when interest rates were at record lows, investments soared. This drop compared to a fall of 27% in investment deal activity in the overall venture capital market. Fundraising for 2024 is also likely to be stronger than 2023; $3.4 billion was raised as of late June 2024, compared with $3.9 billion in all of 2023. #climatetech #climateVC #climate

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Sharing views of my Partner. "Within the climate change investment ecosystem, much of the capital has gone to two ends of the spectrum: venture capital and infrastructure. Those investments are obviously impactful, but more of a developmental, long-term approach to solving climate change. We try to focus on where we can make an impact today. That means looking for companies already reducing emissions or saving energy." Read more from Stuart Barkoff, co-founder and managing partner GEF Capital Partners https://lnkd.in/dX2CMs35

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At a time of such political uncertainty, an urgent reminder that climate-tech is a matter of national security and industrial development strategy. Without any reference to carbon or climate-change, the energy transition is a race the US and the west cannot afford to lose. Technology transitions fuel the economic and military power that shape geopolitics and the rise and fall of empires. Think: Caravel ship design and new navigation tools that underpinned Portuguese conquests of Africa and the Americas. The 1st industrial revolution fueling the rail roads, manufacturing that built the British empire. Then the US-lead second industrial revolution with oil, cars, and the economic boom associated with these. Ascendent after WWI, the US eclipsed Britain and Europe as in WWII on the back of its economic might and technology leadership. But the best analogy for the critical strategic, economic and technological importance of winning the clean energy race is microprocessor chips. In the 1950s through 70s, America’s ingenuity and capital markets seeded these technologies that changed everything, not just computers, the internet communications, but smart bombs, intelligence, satellites in the midst of the cold war. Japan and Korea’s economic miracles were tied directly to economic development policies focusing on these industries. And today, China’s claims on Taiwan are more about controlling TSMC’s chip manufacturing technology than national identity. Lets be clear. Clean energy technology is the next wave of technology that will shape this century and those that win this tech will control the economic and geopolitical order of the future. China saw this 20 years ago and has invested billions to ensure it wins the race. Today, China controls ~75% of global battery manufacturing capacity, 80 % of solar panel capacity, 58% of EVs manufactured, and 60% of the critical minerals that feed these industries. Beyond economic power, climate-technologies will also decide the future of hot and cold conflict. Think: grid resilient military bases powered by distributed energy at a time of cyber attacks on the grid.  Electric tactical vehicles with no noise signature. Battlefield batteries replacing highly exposed fuel supply chains. This isn’t speculation, this is straight from the US militaries climate-change strategy. China understands that clean energy is the inevitable future, and he who captures this prize wins the 21st century. They are cheaper, easier to deploy, with exponentially falling costs, and myriad use-case superiorities that make the obsolescence of fossil fuels inevitable. Today, 90% of all new generation capacity being added globally is renewable. We reached peak ICE vehicle in 2017. At a time when climate has become a partisan political issue, lets reframe this topic as the urgent matter of global security it is. The future of clean energy is not open to debate. But who wins this prize and, with it, the next century, is up to us.

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Should private markets look more like public markets? In this Citywire interview with the supremely knowledgeable Selin Bucak, we discuss the different angles of the private markets wealth push. Where should private markets and public markets intersect? I think it should intersect more in the execution and infrastructure than it should in trying to fit a "square peg in a round hole." "I'd almost want this space to think about looking more like public markets in the execution, where there's the ability to press a 'buy button' and then alternatives are a piece of a portfolio than have it look more like public markets from a product perspective where you're trying to combine private-public products, which I also think will happen." Listen to the entire interview on Citywire, link below. Alt Goes Mainstream https://lnkd.in/exKH3y3V

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Absolutely thrilled to welcome Eliot Brooks, Freddie Scott, William Knapp, and the entire Cocoon team to the Wireframe portfolio, and lead their pre-seed round! Steel and concrete are widely considered some of the toughest industries to decarbonize; responsible for 14%+ of GHG emissions today. The scale of these sectors -- with concrete being the second most used substance in the world after water -- makes it extremely difficult for any new technology to make a dent on operations or emissions. But with demand for building materials growing rapidly as we invest in modern cities and infrastructure, solutions that can deliver cost-effective carbon impacts in the short-term is exactly what we need. Enter Cocoon. The company's novel approach leverages existing feedstocks, flow sheets, and supply chains to produce low-carbon cement from slag, all while increasing the profitability of sustainable steel operations. More on why we're convinced that their scalable, shipping container sized system can be the winning solution for these historically hard-to-abate sectors + the progress they've made in just 15 months here: https://lnkd.in/ezzTWtaw

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Our last Climate Report is out! Thank you Georgina Fleming for a great summary. It is our greatest joy at Systemiq Capital to help our amazing founders to scale their businesses, generating returns for our investors and getting us to net zero faster. #climatetech #impactreport

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As private markets welcome more investors to the space, the how becomes as important as the why. iCapital Chairman & CEO Lawrence Calcano came on the Alt Goes Mainstream podcast to break down the how and the why. How can investors gain access to private markets in ways that work for them? How can alternative asset managers better serve those investors? How can this all be done in a responsible, thoughtful way that sets up both investors and private markets for success in the long-term? What is the evolution of the different service models that enable GPs to unlock access to private markets for more LPs? Lawrence Calcano and I discussed these topics and more on the show. Thanks Lawrence for coming on the show to share your thoughtful perspectives on the industry and its continued evolution. Thanks to Ultimus Fund Solutions for sponsoring this episode of the Alt Goes Mainstream podcast. https://lnkd.in/eX7njq8b

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No matter how many things we do, it feels it isn't enough to battle against climate change, specially in the construction industry, accounting for 40% of CO2 emissions related with energy. Nevertheless, we have to keep up with these efforts. Thanks Michael Beckerman for inviting us to join the CREtech Climate Venture Coalition, where we'll be joining forces with other leading VCs in the construction and RE sector to find and support the most promising startups supporting the industry to reduce its carbon footprint. Zacua Ventures #cimatetech #contech #startups

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Early stage climate investing impacts of Trump 2.0 through the lens of an LLM observing our teams post election investment committee discussions - 1. IRA Implementation Challenges reflect deep concerns about program execution rather than just policy changes. The team noted that even without formal rollbacks, administrative cuts or friction could effectively neutralize IRA benefits. They discussed how bureaucratic slowdown and uncertainty around decision-making could make programs practically inaccessible even while technically remaining in place. This led them to pass on at least one investment opportunity that was heavily dependent on smooth IRA implementation, demonstrating how these concerns are actively shaping investment decisions. 2. The Municipal/State Level discussion focused on the potential for local action to provide some stability amid federal uncertainty. The team explored how in the past some cities and states led on climate initiatives and could continue pushing climate initiatives forward regardless of federal stance. This created an interesting tension between seeing local government as a source of stability while recognizing its resource limitations. 3. Market Psychology emerged as a crucial factor in their analysis. The team explored how regulatory uncertainty affects behavior throughout the market - from individual bureaucrats becoming more risk-averse in approvals to customers hesitating on purchasing decisions. They highlighted how market participants' fear of potential changes can freeze activity even before any actual policy shifts occur. This psychological impact appears to act as a force multiplier for regulatory uncertainty, potentially affecting markets faster and more severely than formal policy changes. 4. Unsubsidized Business Models. The team is continuing to focus on finding companies that can succeed primarily on economics rather than regulatory support. They discussed adjusting valuations to account for increased regulatory risk and showed particular interest in business models that could maintain growth even in adverse political environments.

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It's Earth Month 🌎 and Clear Current Capital's portfolio company, Nosh.bio stands out for truly embodying the ethos of "Think Different." Founders Tim Fronzek and Felipe Lino prioritize core values such as trust, respect, pro-activity, customer-centricity, and positive thinking in shaping their company culture 💫. With a diverse team spanning nine nationalities and four continents, they understand the unifying power of food 🌱. Through scalable and sustainable technology, Nosh aims to provide clean, healthy, and affordable food. They are not only thinking but building, nourishing, and solving problems differently, particularly concerning the longevity and strength of our food system. Be inspired to Think Different. 🍎 Challenge: Many food products are not tasty, affordable, or sustainable. CLEAR + BOLD SOLUTION: Nosh.bio creates ingredients from fungi for cleaner labels, improved taste, and texture in meat and fish analogues, as well as convenience foods, dairy, confectionery, and bakery items while adding nutritional value. Their nutritional and highly functional proteins are naturally produced, low processed, allergen-free, non-GMO, not novel foods, and at cost parity. Nosh's proprietary fermentation process is scalable and sustainable. #innovation #food #foodtech #sustainability #climatesolutions #EarthMonth

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Exciting to see infinitas capital and Opportuna featured in Bloomberg as part of the growing conversation around family offices and the secondary market. With liquidity tightening and investor demand building, Opportuna is seizing the potential of venture secondaries, offering an avenue to unlock liquidity and realize solid gains within a shorter timeframe. To learn more about @Opportuna and our strategy, reach out to Alban C. or Christopher L.R. Chuffart

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I'm excited to share the Chestnut Solutions Institute's proprietary analytic frameworks with the public for the first time in our next webinar. We've developed new tools to help investors ensure their sophisticated needs will be met by today's complex solutions and OCIO offerings. Join us! Details and registration link below. #OCIO #investmentsolutions #investmentconsulting #investmentmanagement #insitutionalinvestors #familyoffices #privatewealth

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With news of HPS Investment Partners, LLC discussing a prospective IPO, which alternative asset managers are next in line to cross the chasm to public markets? In this week's Alt Goes Mainstream AGM Alts Weekly, I highlight some of the attributes that indicate that an alternative asset manager could be on the path to a public offering and share a list of some that could go public. Silver Lake Vista Equity Partners Clearlake Capital Group General Atlantic Warburg Pincus LLC Ardian Bain Capital HarbourVest Partners Hellman & Friedman Thoma Bravo Advent International Insight Partners Clayton Dubilier & Rice Who is next in line for an IPO? Read this week's AGM Weekly brought to you by Intapp (Intapp DealCloud ) for thoughts on how firms can go public: https://lnkd.in/eVrveeEt

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I think Adams Street Partners are spot on in this very thoughtful piece! · Rising interest rates are creating headwinds for buyout portfolios · Leverage reliant GP's returns are to be negatively impacted · GPs focusing on scaling via earnings growth are more likely to outperform · Sellers should rein in their valuation expectations What does this mean for PE market like #ASEAN where returns are inherently #growthdriven? Rather simplistically put, higher interests rates are levelling the playing field between Developed Markets (DM) and Emerging Markets (EM) The more returns need to rely on growth, the more regions or countries with strong GDP growth fundamentals become attractive. Granted there are many more nuances that come into play, but one could hardly argue that for the last decade+, low rates and generous leverage packages have supercharged returns in DMs. Unlevered EM businesses needed to grow earnings 3 to 4x faster than DM peers to just match the returns, quite a tall order even in booming economies. With a more "normalised" rate environment, portfolios would benefit from regionally diversified exposures to growth and we believe #ASEAN displays the most promise! #CollyerCapital #CCPL #LeveragedReturns #GrowthReturns #Buyout #interestrates https://lnkd.in/g9xDCjMY

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In markets and sectors where private capital isn't naturally flowing, blended finance deals are often necessary to build a track record. According to a report from Convergence Blended Finance, it's a category that's proved particularly resilient over the last year, attracting private sector investors typically swayed by spicy macroeconomic conditions. Blended finance breakdown: 🔹 Private investors drove $18.3 billion in blended climate finance transactions in 2023, a 120% year-over-year increase. 🔹 It's attractive to institutional investors ~45% of blended finance transactions went into funds/deals larger than $1 billion, and the median blended deal size was $105 million, up 160% from 2022. 🔹Climate #adaptation needs more focus, only $1.2 billion was mobilized in this space last year. (There's a ways to go to convince investors that adaptation can generate healthy returns..) Use cases: 🔹 Asia: The Asian Development Bank (ADB) is testing out a blended finance model to make early pay-outs to retire coal plants in Indonesia and the Philippines up to 15 years ahead of schedule to reduce emissions faster. 🔹 Latin America: GAWA Capital is nearing a first close for a $300 million fund, which layers concessional and commercial capital to support climate adaptation in rural communities. 🔹 Africa represents the largest share of blended deals at 44%, but most rely on international funding sources, leaving local institutional capital untapped.. Rwanda is using grants, concessional loans, and credit guarantees to drive private investment in green projects as it aims to reduce emissions by 22% by 2030. ImpactAlpha Jessica Pothering Nick Zelenczuk Ayesha Bery Allianz FMO - Dutch entrepreneurial development bank MacArthur Foundation Luca Torre Rwanda Green Fund #BlendedFinance #GlobalInvesting #EmergingMarkets #ClimateTech

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