The Canada Growth Fund (CGF), a federal investment initiative focused on clean energy, has announced a commitment of up to $50 million CAD to Longbow Capital’s second Energy Transition Fund. This investment follows Longbow’s initial close of $150 million CAD for the fund in November, with backing from institutional and family office investors, including returning anchors TD Bank Group, Caterpillar Ventures, and BDC Capital. CGF’s contribution aligns with its broader mandate to attract private capital to the Canadian cleantech sector and accelerate the growth of energy transition solutions.

Longbow’s Energy Transition Focus

Longbow Capital, a Calgary-based private equity firm, launched its second Energy Transition Fund with a target of $250 million CAD to invest in North American companies driving energy transformation. The fund focuses on businesses developing cost-effective solutions to lower carbon emissions, supporting the ongoing transition to cleaner energy sources. With CGF’s investment, Longbow aims to expand its portfolio of innovative companies that leverage sustainable technologies to enhance efficiency and reduce environmental impact.

CGF’s Role in Advancing Cleantech

The Canada Growth Fund was established as a $15-billion vehicle to stimulate private investment in cleantech projects and businesses across Canada. Managed by a subsidiary of PSP Investments, CGF made its first investment in October 2023, contributing $90 million CAD to Calgary-based Eavor’s Series B round. With the Longbow commitment marking CGF’s tenth investment since its launch, the fund continues to position itself as a critical catalyst for scaling Canadian cleantech ventures.

Industry Leaders Express Optimism

Yannick Beaudoin, President and CEO of Canada Growth Fund Investment Management Inc., emphasized the strategic importance of CGF’s partnership with Longbow. He noted that Longbow’s expertise in the energy sector, coupled with its strong pipeline of investment opportunities, aligns with CGF’s objective of supporting high-potential cleantech firms. Tyson Birchall, Managing Director at Longbow Capital, highlighted the transformative nature of the energy sector’s decarbonization efforts and reaffirmed the firm’s commitment to fostering sustainable investment opportunities.

Longbow’s Investment Track Record

Since its founding in 1997, Longbow Capital has built a reputation for investing across the energy, power, infrastructure, and technology sectors, with approximately $1.5 billion CAD in assets under management. The firm’s first Energy Transition Fund closed at $181 million CAD in 2022 and backed Canadian cleantech firms such as Clir Renewables and Arcus Power. Longbow was also recognized with the 2024 PE Deal of the Year award for its successful exit from hydrogen and natural gas distributor Certarus.

Future Outlook

Longbow’s second Energy Transition Fund has already completed one disclosed investment—a $210-million CAD equity round in Houston-based energy management platform VoltaGrid in March 2024. With CGF’s backing, the fund is expected to accelerate its investment strategy, focusing on companies poised to drive meaningful impact in the energy transition landscape. As Canada continues to prioritize cleantech innovation, partnerships like the one between CGF and Longbow are set to play a pivotal role in shaping the nation’s low-carbon economy.

The Canada Growth Fund’s $50-million CAD commitment to Longbow Capital underscores the growing momentum in Canada’s cleantech investment landscape. By providing essential capital to energy transition-focused funds, CGF aims to drive innovation, attract sophisticated investors, and scale solutions that contribute to a more sustainable future. As Longbow expands its portfolio, this collaboration is poised to generate long-term economic and environmental benefits for Canada’s evolving energy sector.