Carbon Equity launches €50m fund as it shifts to direct investing: 'A natural evolution'

Carbon Equity is making its first move into direct company investing with the launch of a €50m co-investment fund, marking a strategic expansion beyond its core fund-of-funds model.

“This the natural evolution of the company that we always planned,” Jacqueline van den Ende, founder and CEO, tells Impact Loop over the phone.

Until now, Carbon Equity has operated as a fund-of-funds, giving private investors access to climate venture, growth, and infrastructure funds they would otherwise struggle to reach.

With the new co-investment vehicle, the Amsterdam-based climate investment platform will now directly back growth-stage climate tech companies, alongside the funds already in its portfolio such as Energy Impact Partners, Lightrock, and 2150.

The launch comes after a volatile year for climate fundraising.

“2025 was definitely more challenging,” Van den Ende says, citing political uncertainty in the US and a broader liquidity squeeze in private markets.

However, she also thinks the market is becoming "more rational" after a period of hype. “In 2026, I think we’ll just get back to business,” she says.

Backing from family offices

The LP base is dominated by family offices and ultra-high-net-worth entrepreneurs, a group that Carbon Equity says has long pushed for more direct exposure.

“Family offices typically don’t like fund-of-funds because of the double-layer fee and because they don’t need that level of diversification,” Van den Ende said. “For those clients, this is a direct fund with a lower cost base – but also a higher risk profile.”

Carbon Equity has already raised €20m in pre-commitments for the new fund and expects a first close of around €25m by the end of December. A final close of €50m is expected in Q4 next year, though Van den Ende says the firm is not in a rush.

Going direct

Carbon Equity believes it has a unique edge in picking direct deals. Over four years, it has invested in 30 climate funds, tracking thousands of companies across their portfolios.

“For almost any company, we get three or four different investment decks,” Van den Ende says. “We know which companies are on track and which are not – that gives us a huge data advantage.”

The co-investment fund will target growth-stage companies, typically from Series B to pre-IPO, with around 12 concentrated bets, says Van den Ende.

“We're focusing more on clear business cases and less on far-out technologies,” Van den Ende says.

The fund has already invested in geothermal firm Fervo Energy and wind maintenance robotics company Aeronis.