PE climate funds: Warming or cooling?

Mixed signals from VC in Europe; BlueFive raises $2B for debut fund; continuation funds spread to private credit

Read online | Don't want to receive these emails? Manage your subscription. Log in The Daily Pitch: VC, PE and M&A July 11, 2025 The Daily Pitch is powered by PitchBook's industry-defining research and best-in-class data 💶 Europe's private markets sent mixed signals in H1 2025, with deal momentum slowing in Q2 after a stronger start to the year. AI boosted deal value, while Aerospace & Defense emerged as a breakout sector, according to our latest European Venture Report, sponsored by J.P. Morgan. But fundraising reached just €5.2 billion in H2, on pace for a 53% decline YoY. Get the report Plus... • Ex-Investcorp leader secures $2B for debut PE fund • Continuation funds are gaining ground in private credit Was this newsletter forwarded to you? Sign up here.   Climate-focused PE funds: Are investors warming up or cooling off? Are climate-focused PE funds here to stay? Our new dataset reveals that from 2009 through Q1 2025, generalist and specialist funds investing in the space raised a combined $488.1 billion, with specialist fundraising activity accelerating in recent years. Despite political headwinds, macroeconomic challenges and growing competition, climate PE funds across the globe continue to attract commitments. We forecast AUM to grow from $463 billion at the end of 2024 to over $560 billion by the end of the decade. This analyst note examines forces behind the expansion of the climate PE universe: improving fund returns, technological development, maturing GP expertise, LP interest rooted in long-term secular trends and more. Read it now     A message from PitchBook Data   Data that drives deals Some questions can't be answered with off-the-shelf data. That's where we come in. We work with PitchBook's Custom Research Group to design custom research projects that uncover trends, surface opportunities, and support strategic decision-making. Whether it's a deep dive into a specific asset class or insights tailored to a niche audience, we build each bespoke project from the ground up—using PitchBook's proprietary data, expert analysts, and specialized publishing team. If you're curious what a custom project could look like for your team, we're happy to share examples. Get in touch   Ex-Investcorp leader secures $2B for maiden fund within a year of launching (Danilo Andjus/Getty Images) BlueFive Capital raised $2 billion for its debut PE fund targeting high-growth businesses in Gulf Cooperation Council countries. The Abu Dhabi-based firm, founded by former Investcorp co-CEO Hazem Ben-Gacem last year, aims to invest in the healthcare, technology, hospitality and industrial sectors. Read more   Surveying ESG and impact investing practices We've launched our 2025 Sustainable Investment Survey and would like to hear what challenges private market ESG and impact investors face. We invite you to share your views on topics including: Are concessionary returns really the expectation of impact investors? Are your clients advocating for the use of ESG or against, or are you stuck in the middle with both? What sustainable investment themes are most financially attractive right now? All who complete the survey will have the opportunity to enter a prize drawing, and for each completion, PitchBook will make a donation to World Central Kitchen. Take the survey   Revolut eyes $65B valuation in upcoming funding round (Getty Images) Founder and CEO of Revolut, Nik Storonsky Europe's most valuable VC-backed company, Revolut, is said to be looking to raise $1 billion from investors, putting its valuation at $65 billion. The UK-based challenger bank is reportedly in talks to secure funding via secondary share sales and newly issued shares. Read more   Continuation funds spread to private credit (Josie Doan/PitchBook News) Continuation funds, tools widely championed by PE firms to help antsy LPs cash out of their investments, are gaining ground in private credit. Once seen as a haven from market downturns and volatility, private credit is showing it is not immune to liquidity pressures as realizations from deals slow and fund returns from older vintages disappoint investors. So GPs have turned to continuation funds, with a goal of providing liquidity without selling a strong portfolio away. Read more     Since yesterday, the PitchBook Platform added: 596 Deals 2549 People 827 Companies 29 Funds See what our data software can do   The Daily Benchmark: 2018 Vintage North American VC Funds Median IRR 15.41% Top Quartile IRR  22.35% 0.20x Median DPI Select top performers Inter-Atlantic Ivy Tribeca Access Fund I Battery Ventures XII Side Fund *IRR: net of fees 52 Funds in Benchmark » Check out the latest version of PitchBook Benchmarks   VC Deals   Groq, an AI chip startup, is in talks to raise between $300 million and $500 million at a $6 billion valuation, The Information reported. Harmonic, which develops AI systems for solving math problems, raised a $100 million Series B led by Kleiner Perkins at an $875 million valuation. Varda Space Industries, which creates technology to use microgravity for pharmaceutical development, raised a $187 million Series C led by Natural Capital and Shrug Capital. Swiss radiopharmaceutical company Nuclidium raised an €84 million Series B led by Kurma Partners, Angelini Ventures, Wellington Partners and Neva SGR. Spacelift raised a $51 million Series C led by Five Elms Capital for its cloud infrastructure management platform. Aqtual, which develops diagnostic tests for chronic illnesses, raised a $31 million Series B from investors including Bold Capital, Genoa Ventures and Manta Ray Ventures. Ionic Mineral Technologies, a manufacturer of battery materials, raised a $29 million Series B. Vellum, a startup operating an AI development platform, raised a $20 million Series A led by Leaders Fund. Dutch quantum computing startup QuiX Quantum raised a €15 million Series A led by Invest-NL and European Innovation Council. VC-backed wealthtech startup WealthKernel agreed to be acquired by Alpaca Markets, which operates a brokerage platform and counts Riverside Ventures and Spark Capital among its backers.   Catch our next series of webinars Hear our expert analysts break down shifts in private market expectations at the halfway mark of 2025. From increased uncertainty to volatile global markets, get the timely coverage you need to make informed decisions. Register now to secure your spot.   PE Deals   Private markets fintech company iCapital raised $820 million in a round led by T Rowe Price and SurgoCap Partners at a $7.5 billion valuation. Temasek-backed Manipal Health Enterprises acquired Sahyadri Hospitals, an India-based hospital network, from the Ontario Teachers' Pension Plan for about $700 million. Blackstone raised its offer to buy UK landlord Warehouse REIT, valuing the company at £489 million, Bloomberg reported. Partners Group invested $230 million to acquire a majority stake in Indian non-bank lender Infinity Fincorp Solutions. Electronic SIM card company Airalo raised $220 million in an investment led by CVC Capital Partners at a valuation of over $1 billion. PE-backed Grant Thornton's UK and US arms are competing to acquire their German counterpart, the Financial Times reported. Main Post Partners acquired a minority stake in beverage chain Smoothie King. White Peaks Capital invested in Pom+, a Switzerland-based real estate management consultancy. Verlinvest and Vendis Capital invested in KaraFun Group, a France-based gamified karaoke app developer.   Portfolio Companies   JP Morgan-backed Claire's Stores is considering a potential bankruptcy for its US operations, Bloomberg reported. Angeles Equity Partners and Kain Capital are merging Agile Occupational Medicine and Akeso Occupational Health, two of their respective portfolio companies.   Exits   Cinven is in talks to sell Envu, a pest control chemical manufacturer and former unit of Bayer that could be valued around €3.5 billion in a deal, Bloomberg reported. Bain Capital is considering a sale of its majority stake in Toronto-listed outerwear brand Canada Goose, which currently has a market value of $1.3 billion, Bloomberg reported. Manzanita Capital exited UK-based cosmetics retailer Space NK to US-listed Ulta Beauty. VC-backed Kraftful, which develops AI technology for customer experience feedback, has been acquired by Nasdaq-listed Amplitude.   Fundraising   British Business Bank announced £400 million to invest in diverse and emerging fund managers. Investcorp raised a €240 million continuation fund for HWG Sababa, an Italy-based cybersecurity firm. California-based VC firm Propel Venture Partners closed on $100 million for its fifth fund. Mizuho Financial Group raised $97 million for its latest debt fund for startups.   Investors   Partners Group's infrastructure secondaries strategy generated $1.5 billion in distributions in H1 2025. Calista Direct Investors, a Luxembourg-based private markets advisory and co-investment firm, has announced the opening of a new office in London.   Chart of the Day   Source: Continuation funds find their footing in private credit   Who's in the newsletter today? Investors Angeles Equity Partners Angelini Ventures Bain Capital Blackstone Bold Capital British Business Bank CVC Capital Partners Calista Direct Investors Cinven European Innovation Council Five Elms Capital Genoa Ventures Invest-NL Investcorp JP Morgan Kain Capital Kleiner Perkins Kurma Partners Leaders Fund Main Post Partners Manta Ray Ventures Manzanita Capital Mizuho Financial Group Neva SGR Ontario Teachers' Pension Plan Partners Group Propel Venture Partners Riverside Ventures Shrug Capital Spark Capital SurgoCap Partners T Rowe Price Temasek Ulta Beauty Vendis Capital Verlinvest Wellington Partners White Peaks Capital Companies Agile Occupational Medicine Airalo Akeso Occupational Health Alpaca Markets Amplitude Aqtual Bayer Canada Goose Claire's Stores Envu Groq HWG Sababa Harmonic Infinity Fincorp Solutions Ionic Mineral Technologies KaraFun Group Kraftful Manipal Health Enterprises Nuclidium Pom+ QuiX Quantum Sahyadri Hospitals Smoothie King Space NK Spacelift UK US Varda Space Industries Vellum Warehouse REIT WealthKernel iCapital     About PitchBook | Terms of use | Advertise with us | Contact Follow us: This email was sent to abdulkerim.bosnia.business@blogger.com via the PitchBook Platform. 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