Junction Growth seeks EUR 100m for energy transition fund

The vehicle which is targeting EUR 100m, held a first close on EUR 75m during the summer. Investors included Belgium’s PMV and the European Investment Fund (EIF), who committed EUR 30m to the fund, as well as several Belgian family offices.

The GP targets institutional investors, including banks, insurance companies and family offices, and would be open to international LPs, Gregoire said.

The firm measures the fund's performance based on financial returns and impact factors, he said, adding that it is registered as an Article 9 fund, which targets sustainable investments. Four of the fund’s co-founders include investment specialists and entrepreneurs with industry knowledge that have successfully sold their businesses.

Launched this summer, the firm employs four and is headquartered in Antwerp.

Investment plans
Junction Growth will seek to finance up to 15 small and medium-sized enterprises and scaleups involved in the energy transition space, looking at both software and hardware companies with B2B and B2C models.

Targets must already have a product in place, have reached a go-to-market stage, and seek to scale and industrialize their product, he said.

The sponsor can invest in both minority and majority stakes in businesses based in the Benelux region, France and Germany, with other European countries to be considered as well further down the line.

Junction Growth plans to deploy tickets of EUR 2m to EUR 15m. Its sweet spot is between EUR 5m and EUR 10m per ticket, and it would support add-ons.

Junction Growth has made one investment so far, in Belgian energy IT software provider Haulogy, which serves distributed grid operators, energy retailers and new energy markets. The sponsor is in due diligence talks for the second deployment, Gregoire said. It plans to deploy investments within five years, with investment holding periods of five to seven years.

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