By Oliver M. Bayani
Private equity firm Silver Lake is teaming up with George Soros' Soros Fund Management to form Lake Kraftwerk, a fund that will provide capital for growth stage companies in the energy and resource sectors.
Kraftwerk is Silver Lake’s first investment in the clean energy industry. The company has primarily focused on three investment areas in the technology sector since 1998.
Silver Lake said the new fund will focus on companies involved in energy efficiency, waste and emissions reduction, renewable energy and better use of natural resources.
“There are many parallels between the development of the technology sector and the innovation that is occurring in the energy and resource sectors today,” said Greg Mondre, Silver Lake managing director.
The size of the fund was not disclosed, but it is backed up by some financial and professional heavyweights right off the bat.
Adam Grosser, who served for a decade as a general partner at Foundation Capital and has 28 years of experience in technology sector, will lead Kraftwerk.
Cathy Zoi, United States President Barack Obama’s former acting undersecretary for energy and assistant secretary for energy efficiency and renewable energy, will join the fund as well by April.
“Developing alternative sources of energy and achieving greater energy efficiency is both a significant global investment opportunity and an environmental imperative,” said George Soros, who heads his Soros Fund Management L.L.C.
The billionaire has been a staunch supporter of green projects, having promised he will invest more than $1 billion of his own money into clean energy technology.
Ernst & Young said the United States attracted 3.98 billion in venture capital last year, just 7.5 percent above 2009.
