Global investment firm Eurazeo has marked a significant milestone with the successful closure of its Eurazeo Smart City Fund II, amassing EUR 400 million (USD 440 million) in capital and surpassing its initial target.
A coalition of international partners has backed the new fund, comprising five sovereign wealth funds and development institutions including EIF, Bpifrance, PFR, F.R.C, and KVIC. In addition, the fund has garnered support from 18 corporations spanning Europe and Asia.
Among these enterprises are European investors such as EDF, TotalEnergies, Stellantis, Hager Group, ZF, RATP, Mainova, SWK AG, and Duisport. From Asia, notable contributors include Banpu, Momentum Venture Capital, SP Group, Jardine Pacific, IMC PanAsia, Sansiri, and SCG.
The network of support from Europe and Asia provides the Smart City Fund with extensive reach, enabling Eurazeo to identify and invest in some of the world’s most innovative companies.
The Eurazeo Smart City Fund II has been earmarked for driving technology development and innovation within the realm of sustainable cities. The fund’s focal points encompass key sectors of the low-carbon economy, including renewable energy, advanced mobility, logistics, manufacturing, and sustainable infrastructure. Notably, the fund targets companies that exhibit verifiable environmental impact, primarily within Europe, but also with a global scope that encompasses Asia and North America.
The fund has already made ten investments in companies that are making significant strides in the fields of climate technology and sustainability. These include:
- 1Komma5°, which provides carbon-neutral residential solutions.
- Electra, a provider of swift-charging electric vehicle infrastructure.
- Swapp, a platform utilizing artificial intelligence for construction documents.
- UrbanChain, a UK-based peer-to-peer renewable energy exchange platform.
“Our upcoming investment is geared towards India, where an impending electric vehicle boom is on the horizon. We’re witnessing waves of innovation that are now aligning with favorable unit economics, primed for widespread adoption. Beyond technology alone, we are looking at unit economics necessary to displace traditional systems with new building blocks for a decarbonized economy: renewable energy, advanced mobility, data-driven supply chains, new more sustainable construction technologies,” said Julien Mialaret, operating partner at Eurazeo.
Boasting a worldwide footprint encompassing 12 offices across Asia, Europe, and the Americas, and managing assets worth EUR 35 billion (USD 38.4 billion), Eurazeo possesses the reach and capability to connect with inventive enterprises all around the world. Furthermore, it enables them to collaborate with corporate partners in deploying novel technology solutions into real-world scenarios, accelerating their sustainability impact in urban environments.
As the world grapples with the imperative need for greener and more interconnected spaces, the fund underscores Eurazeo’s commitment to shaping a sustainable and technologically advanced landscape for the future.