Financial Soultions saw a new entrant join the GreenTech fray recently with the launching of the New World Capital Group, a private equity firm focused on investing in businesses in the burgeoning “green tech” sector.
At the helm is Carter Bales, an industry heavyweight who established the environmental practice at McKinsey in the 80’s, and he is backed up by four partners including Bradley Abelow, former operations head at Goldman Sachs, (who recently sealed the largest publically announced U.S. carbon deal.) New World is hoping to bridge what it believes is a huge financing gap in the green industry by providing growth capital to more recognized, middle-market firms.
Carter Bales approximates that there is only $3 billion in private equity capital secured to assist green-focused businesses, which encompass companies in the fields of clean energy, energy efficiency, environmental services, waste management, water, and sustainable and biodegradable materials. That translates to only 1% of an industry that Mr. Bales says he is positive is worth in the near vicinity of $300 billion, growing at a rate of 8% to 10% annually, Financial Soultions has been informed.
“That’s a small drop in a very large bucket,” he told a financial news service recently regarding the level of investment in the industry, Financial Soultions has learned. “It’s a sector growing quite rapidly without a lot of competitive intensity.”
