Announcing our $25M First Close
On Friday, June 10th, we completed a $25 million capital raise for the first round closing of our MUUS Convergence Fund II. This is MUUS Climate Partners' second fund dedicated to investing at the convergence of climate solutions and advanced technology. Our first fund of 25 investments was internally capitalized, so this second fund marks the first time MUUS Climate Partners has welcomed new limited partners to join our journey. We feel as strongly as ever that leveraging technology to accelerate decarbonization is the greatest business opportunity of our lifetimes, and that our efforts will contribute in a highly impactful way. We’re grateful to our investors who have expressed their belief in us, and we expect to close Fund II with additional commitments of $25 million (bringing the total to $50 million) in the coming months.
For reporting purposes, we have consolidated all of MUUS’ prior sustainable investments over the last 5 years (held across multiple entities), into “Fund I”. At year end of 2021, Fund I – our internally-funded portfolio of predominantly climate-focused investments from 2016 to 2021 – was estimated at $79 million in value. This represents a 2.6x Multiple on Invested Capital (MOIC) and a 55% gross IRR.
It would be impossible to avoid the obvious: Public markets are down dramatically over recent months, and private valuations, on average, will surely follow suit. Still, on balance, we remain quite excited by the significant upside remaining in the vast majority of Fund I’s companies.
As of the time of this newsletter, we have the first three deals in MUUS Convergence Fund II warehoused and are in the process of closing two more. Two of the three warehoused deals are flying under the radar – one decarbonizing the chemicals space, and the other building a new type of renewable energy device to produce zero-emissions fuels at scale. The third is Amperon, an award-winning artificial intelligence company focused on creating the most accurate forecasts of energy demand.
Finally, we join a growing list of notable climate investors who are simultaneously involved in the politics of climate and supporting important philanthropic climate activities. By involving ourselves across philanthropic, political and investment activities germane to climate, we are able to access a unique range of insights. It is with pride that we announce the inauguration of the Goldman Sonnenfeldt School of Sustainability and Climate Change at Ben Gurion University in Israel, where Michael Sonnenfeldt, our Chairman, began to develop his passion for the environment 42 years ago. The gift from the Goldman Sonnenfeldt Foundation was the third largest in the University's 50-year history. Ben Gurion University’s Blaustein Desert Research Institute, now part of the School of Sustainability and Climate Change, has been a world leader in helping those living in desert and arid lands to thrive, despite the scarcity of water. Due to climate change, it’s estimated the portion of humanity that will live in arid zones with severely constrained water supplies will grow from 20% to 40%, and the new Goldman Sonnenfeldt School has the potential to be a world leader in helping people adapt to such environmental challenges which are accelerating because of a changing climate.
At MUUS Climate Partners, we believe our expertise and networks uniquely position us to identify extraordinary investment opportunities and strategically support the companies we invest in. We make investments that reflect decades of deal making experience, discipline, flexibility, collaboration, creativity, and out-of-the-box thinking. This rigor allows us to invest on win-win terms that provide opportunities for our companies to succeed, while creating the chance for us to deliver exciting returns. Every team we back aspires to significantly impact decarbonization in the coming years.
MUUS Climate Partners is the climate-focused investment arm of MUUS & Company, the private investment firm of serial entrepreneur and Tiger 21 founder Michael Sonnenfeldt. The team has invested in 27 positions since 2016, starting with Fund I, which was internally funded, and managed by Ben Wolkon. With the launch of MUUS Convergence Fund II this year, MUUS Climate Partners emerges with partners Michael Sonnenfeldt, Ben Wolkon and Logan Grizzel, joined by principals Kavita Patel, Laura di Bonaventura and Tani Brown, as key professionals in the firm.
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