The sun also rises: a volatile week in clean energy now makes way for the next investment cycle.

From hundreds of millions of dollars in restructurings to formal asset sales, the post-2021 financing environment appears to be finally flushing through the investment cycle especially for green tech companies.

Loam Bio. Tritium. SunDrive. SunPower. These are some of the innovative companies that have made headlines for major restructurings or exits in the last few days alone. At face value, this may appear concerning. However, opportunity lies after such a necessary correction.

The current market capitulation is the sign of a healthy investment market finally joining buyers and sellers to meet the new capital cycle. The last investment period peaked and ended in 2021. With the ushering in of more than a dozen interest rate raises globally, it is now in 2024 - 2.5 years into the new cycle - that cleantech is finally showing signs of opportunity for new money.

The good news? It is the dawn of the next green energy private investment cycle.

To paraphrase former Prime Minister Paul Keating: this is the correction that the cleantech sector needed in order to

1. adjust for a new, higher capital cost financing environment &

2. re-set valuations and expectations for fresh capital growth to enter. 

At Jekara, we have consistently managed investment and vintage risk well in the last cycle (~2010-2021) to deliver top tier, global cash returns. We invested in global green energy innovators in the early 2010s and exited near-peak cycle in early 2022.  Now, we see the start of the next great investment cycle for sector experts in green energy.

The global energy transition remains one of the biggest investment themes of our generation. Trillions of dollars must be allocated each year to meet global goals. Now, investment can come to the best founders and innovations at the right value for appropriate risk-adjusted returns.

For more information visit jekaragroup.com