Canada Growth Fund (CGF) has committed C$50 million to Idealist Climate Impact Fund LP, managed by Idealist Capital, marking its third major investment. This venture underscores CGF’s continuing ambition to foster growth and innovation within the Canadian clean technology sector.
Idealist Capital, a Montreal-based investment manager, focuses on providing growth equity investments to companies driving the energy transition. With a mission to accelerate decarbonization, Idealist integrates Environmental, Social, and Governance (ESG) criteria into its investment decisions, aiming to deliver superior risk-adjusted returns.
According to its press release, CGF’s decision to invest in Idealist Capital aligns with its mandate to address market deficiencies hindering Canadian cleantech companies’ growth. In Canada, growth-stage cleantech capital raises often face challenges due to limited financial sponsors and insufficient capital availability. By bridging this gap, CGF aims to expedite the commercialization of innovative products, technologies, and services in the cleantech sector.
Through its investment strategy, CGF seeks to provide credibility and capital to Canadian managers, accelerating the growth of targeted companies while promoting best-in-class ESG practices. This approach aims to attract more sophisticated investors to the Canadian cleantech market, ultimately fostering a higher volume of quality opportunities and expanding the Canadian labour market in the clean sector.
Patrick Charbonneau, President and CEO of CGF’s Investment Management team, emphasizes the fund’s pivotal role in Canada’s cleantech market, acting as a catalyst for the growth of promising Canadian cleantech ventures. By supporting growth-stage cleantech managers like Idealist, CGF aims to expand access to capital and drive strategic direction in the market.
The CGF’s recent support follows its second investment in Entropy Inc, and its first investment in Eavor, which was unveiled at a press conference held at Eavor’s headquarters, attended by Charbonneau and Deputy Prime Minister Chrystia Freeland. Freeland stressed the need for Canada to lead in clean economy investments, while Charbonneau highlighted the CGF’s commitment to facilitating more impactful deals, which is integral to the fund’s ongoing success.
With a commitment to facilitating support for ventures like Eavor and Idealist, more opportunities for Canadian innovation can flourish, strengthening the nation’s commitment to a cleaner energy grid, higher-paying jobs, and achieving its net-zero goals.
