Nathan Cummings, Rockefeller and Schmidt Family Foundations, Invest in Aligned Climate Capital’s Fund 2

Bringing the fund’s commitments closer to its $100 million target to accelerate proven climate technologies in the U.S.

NEW YORK | August 1, 2024 ― The Nathan Cummings Foundation, The Rockefeller Foundation, and the Schmidt Family Foundation announced their collective investment into Aligned Climate Capital’s Aligned Climate Fund 2 LP (ACF2), bringing the fund’s total commitments to approximately $70 million. Dedicated to accelerating proven climate technology solutions across the United States, the impact-focused venture fund is committed to investing in companies that advance clean energy, efficient buildings, electric transport, and sustainable land use. With a target of $100 million by final close, ACF2 aims to develop bankable clean energy projects and scalable clean energy operating companies that will attract later-stage institutional investors.

“It is incredibly exciting to have the support of these leading mission-aligned foundations,” said Peter Davidson, CEO of Aligned Climate Capital. “We firmly believe that the climate transition is a unique opportunity for investors to generate strong returns, while creating new jobs and economic opportunities for all.”

While approximately 65% of the emissions reductions required to achieve net zero will come from climate technologies that already exist today, according to the International Energy Agency, progress in scaling access to these technologies in the near term has been insufficient. The U.S. Inflation Reduction Act (IRA) is creating significant momentum to accelerate the clean energy transition and incentivize market players like Aligned Climate Capital to meet market demands.

“Low-income households, which typically spend a higher proportion of their income on energy, have been largely left out of the clean energy transition,” said Maria Kozloski, Senior Vice President of Innovative Finance at The Rockefeller Foundation. “Financial vehicles like the ACF2 help scale the deployment of proven climate technologies which deliver deep community impact, ultimately increasing access to affordable clean energy for those so often left behind and helping to combat the climate crisis for everyone.”

Aligned Climate Capital brings extensive expertise in U.S. clean energy investing, project development, and policy. Its track record in clean energy infrastructure, combined with a focus on commercial technologies with policy support, positions ACF2 to address critical gaps. The fund’s investments are not only focused on driving near-term decarbonization, but also in creating good green jobs, spurring investment in disadvantaged communities, and lowering energy bills for low-to-moderate-income families. ACF2 invests in businesses across four main clean energy categories:

• Clean energy, such as community solar, utility-scale solar, household solar, and support services for wind-project development.
• Efficient buildings, such as virtual power plants, heat pumps, and green insulation.
• Electric transport, such as net zero delivery (trucks, freight), community charging stations, EV charging station repair, and community EV buses.
• Sustainable land use, such as carbon sequestration using natural systems (e.g., regenerative agriculture), remote monitoring, and carbon-market services.

“We’re excited to support Aligned Climate Capital’s Fund 2 at this crucial moment,” said Roman Torres, Portfolio Manager with the Schmidt Family Foundation’s Impact Investing program. “With unprecedented government funding now available for climate initiatives, early-stage equity investments in clean energy development companies are essential. These companies will generate projects that wouldn’t exist otherwise, using this funding to scale up solutions oriented around meaningful environmental and social impact.”

“We are committed to using all our assets to advance our mission. Working with our OCIO partner, Bivium Westfuller, this includes activating the entire endowment for impact. Aligned Climate Capital’s laser focus on climate solutions, along with their authentic commitment to social impact, makes Fund 2 a perfect fit for our portfolio,” said Bob Bancroft, VP of Finance and Mission Investing at the Nathan Cummings Foundation.

Since its inception in 2019, Aligned Climate Capital has made 15 investments totaling approximately $73 million. These include investments in companies such as community solar developer Summit Ridge Energy, multi-family-housing EV-charging provider SWTCH, heat pump manufacturer Nyle, and solar microgrid operator BoxPower. As a mission-driven firm, Aligned believes solving climate change is a unique opportunity to generate strong financial returns while also achieving meaningful environmental and social impact. Its initiatives address the climate emergency by investing in ready-to-deploy and scalable technologies aimed at achieving the 2030 Net Zero Goals.

About Aligned Climate Capital

Aligned Climate Capital LLC is an asset manager with more than $2 billion of assets under management, investing exclusively in the people, companies, and real assets that are decarbonizing the global economy. Founded in 2019, Aligned is a dynamic and mission-driven firm that believes solving climate change is a unique opportunity to generate strong financial returns while also achieving meaningful environmental and social impact. The team works at the intersection of finance, technology, and public policy. For more information, please visit www.AlignedClimateCapital.com.

About Nathan Cummings Foundation

We are a family-led, social justice foundation focused on addressing the most challenging problems of our time – climate change and inequality. We believe these dual crises cannot be addressed without first addressing their root causes, so we invest in systemic solutions that advance racial, economic, and environmental justice. We prioritize partnerships with organizations led by those most impacted by and most capable of dismantling systems of oppression – particularly communities of color. We are committed to leveraging 100 percent of the foundation’s assets — from our relationships to our grants to our investments — in pursuit of people-centric impact. For more information, please visit https://nathancummings.org/.

About The Rockefeller Foundation

The Rockefeller Foundation is a pioneering philanthropy built on collaborative partnerships at the frontiers of science, technology, and innovation that enable individuals, families, and communities to flourish. We make big bets to promote the well-being of humanity. Today, we are focused on advancing human opportunity and reversing the climate crisis by transforming systems in food, health, energy, and finance. For more information, sign up for our newsletter at www.rockefellerfoundation.org/subscribe and follow us on X @RockefellerFdn and LI @the-rockefeller-foundation.

About the Schmidt Family Foundation

Established in 2006 by Eric and Wendy Schmidt, the Schmidt Family Foundation works to restore a balanced relationship between people and planet. Through grantmaking and investments, the foundation partners with communities around the world in working for renewable energy, resilient food systems, healthy oceans and the protection of human rights. For more information please visit: https://tsffoundation.org/.