Generation Investment closes $1B fund to scale climate impact through tech

Generation Investment Management has closed its Sustainable Private Equity Fund II after raising more than $1 billion. The fund will target businesses that can scale climate impact through existing workflows. Three investments have already been made, including Octopus Energy and its spin-out, Kraken Technologies. SPEF II will focus on 'sustainability platforms' with the potential to transform major industries. These businesses are chosen for their ability to improve sector-wide sustainability outcomes. Generation’s approach targets the operating infrastructure behind key sectors, such as software and data systems.

Octopus Energy operates in over 25 countries, providing energy retail, services, and renewable power generation. Its technology arm, Kraken Technologies, serves more than 70 million household and business accounts worldwide. Another investment, IFS, could reduce roughly 2% of global carbon emissions if widely adopted across key industries.

Tom Hodges, Co-Head of Private Equity at Generation, stated that real transformation occurs at the systems layer of industries. The fund aims to back high-quality companies capable of driving large-scale change. The fund’s close signals a shift in sustainability capital towards scalable solutions. SPEF II has already deployed funds into businesses like Octopus Energy, Kraken Technologies, and IFS. These investments reflect a strategy to influence major industries through operational improvements.