Longbow Capital, a private equity investment manager headquartered in Calgary with a 27-year track record and approximately $1.5 billion in assets under management, has announced the initial closing of its Longbow Energy Transition Fund II, securing $150 million in capital commitments. Anchor investors in this round include BDC Capital, TD Bank Group, and Caterpillar Ventures.
The Longbow Energy Transition Fund II, targeting a total raise of $250 million, is designed to support North American businesses poised to benefit from the shift toward lower carbon emissions and energy efficiency. The fund has already made its first investment in VoltaGrid, a fast-growing provider of low-carbon, modular power generation serving the energy, mining, utilities, and data center sectors.
Managing Director Tyson Birchall emphasized the fund’s alignment with transformative shifts in energy demand, including increased electrification and the onshoring of manufacturing. “We continue to see compelling opportunities to invest in businesses that are developing innovative approaches to support the decarbonization of our energy system,” Birchall noted, adding that Longbow’s strategy is well-positioned to benefit from these evolving trends.
BDC Capital’s Senior Vice President, Paula Cruickshank, expressed enthusiasm about the investment. “BDC is thrilled to renew its support for Longbow Capital,” she stated. “With Longbow’s experienced team, we are confident in their ability to empower growth-stage businesses that address today’s environmental challenges and foster a more sustainable, low-carbon future.”
Drew MacIntyre, Vice Chair of TD Securities, highlighted TD’s commitment to energy innovation, citing the alignment of this investment with the TD Ready Commitment, the bank’s corporate citizenship platform. “We are pleased to support entrepreneurs on the front line of energy innovation through our investment in the Longbow Energy Transition Fund II,” MacIntyre said.
Art Robinson, another Managing Director at Longbow, underlined the strategic potential of this shift, calling it a “transformative” moment in energy production, consumption, and financing. “We are committed to supporting innovative solutions that drive this change and in the process help create significant, thriving enterprises,” Robinson stated.
With its initial funding milestone achieved, Longbow Capital is set to pursue further investments in companies spearheading the transition to a low-carbon economy, targeting a total fund close of $250 million.