Mountain Cleantech raises €23m for second fund

Launched in June 2011, Mountain Cleantech Fund II has a target of €100m and aims to become the largest cleantech growth vehicle in the Nordic and German-speaking regions.

Fund II is based in Luxembourg and has a lifespan of 8+1+1. Carbon International and Beck Group are the placing agents, while OPF Partners structured the vehicle. Investors must subscribe a minimum of €1m, while the GP contribution is 1%. The management fees, carry and hurdle are set at the industry standard of 2%, 20% and 8% respectively. The hard cap is €125m and carried interest will be paid on the fund as a whole. Around 20-30% of the vehicle will be reserved for follow-on rounds.

Mountain Cleantech refuses to invest in companies that show a disregard for human rights, discrimination on any basis, use child labour, conduct experiments on animals, involve tobacco, the military or nuclear energy or cause damage to the environment.

Fund II follows on from the investor's first cleantech fund, whose exit from SiC Processing to Nordic Capital in 2010 reportedly generated some of the highest returns the European cleantech arena has seen in recent years. Its investment in En-Tech Energietechnikproduktion was less successful, however, as the biomass company filed for insolvency, also last year.

Investors
Fund II has attracted two corporate cornerstone investors: a large consumer goods group and a semi-governmental organisation. It has eight investors in total, which include DACH and Nordic-based funds-of-funds and family offices, each contributing a similar amount.

Investments
The vehicle will mainly inject capital into the renewable energy, energy efficiency, recycling and new materials segments in Germany, Austria, Switzerland and in the Nordics. It will invest €2m-7m in late-stage growth and special situations, in companies with a minimum turnover of €3m. Stakes of 10-40% will be acquired in around three or four businesses per year.

Mountain Cleantech plans to work with co-investors on deals, leading transactions in the DACH region and taking more of a subsidiary role alongside a local partner in the Nordics.

It has already entered into talks with numerous potential targets and intends to make its first investments before the end of the year.

People
Fund II will be managed by Mountain Cleantech's 10-person technology team of investment professionals and senior advisers with experience in private equity and technology. They will be led by founder Jürgen Habichler, and managing partners Alexander von Hutten and Daniel Koppelkamm. Habichler previously worked for Atlas Ventures' technology team, where he helped establish its cleantech division. He later launched Mountain Cleantech's first fund, Cleantech Invest, in 2007.

The firm is looking to expand its team upon announcing the second and final close of the fund, expected in 2012. It is opening a new office in Vienna next week.

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