Warburg Pincus and The Heritage Group Invest in ClimeCo to Expand Global Decarbonization Platform
BOYERTOWN, Pa., April 5, 2022 /CNW/ — ClimeCo, a global company that focuses on developing and trading environmental commodities and advising clients on emerging environmental market solutions, announced that it has raised over $50 million in an investment round led by Warburg Pincus, a leading global growth investor, and The Heritage Group, which made ClimeCo’s first outside capital investment in early 2021. The financing will be used to fund corporate and project-level growth initiatives. As part of the capital raise, ClimeCo also gained access to additional funds for project equity financing.
This equity and financing line will allow ClimeCo to execute on major decarbonization projects for clients around the world. With these investments, ClimeCo will continue to grow its global project development efforts in reforestation, mangrove restoration, and ocean plastic recovery/reuse, as well as its foundational industrial gas and agricultural methane programs. ClimeCo is also expanding into carbon capture, utilization, and storage (CCUS) and other high-impact, emerging decarbonization asset classes to support its energy-intensive, trade-exposed clients in the cement, ammonia, and hydrogen sectors.
The investment will also allow ClimeCo to build out its team through organic growth and additional mergers and acquisitions, further strengthening its vertically integrated model targeting sustainability, policy and advisory to project development and environmental credit transactions.
“ClimeCo is a vertically integrated global company focused on decarbonizing the most challenging industrial sectors,” says William (Bill) Flederbach, CEO and President of ClimeCo. “We operate at the forefront of an exciting transformation as global businesses, governments, and environmental advocates recognize that environmental markets are the most efficient way to address environmental challenges. We are growing incredibly fast to meet this demand, and it’s the right time for Warburg Pincus and The Heritage Group to invest in our brand. Their networks and passion for project investments align perfectly with our vision.”
Warburg Pincus has a strong track record of investing in companies committed to the growth of Environmental, Sustainability, and Governance (“ESG”) practices across all sectors, including low-carbon opportunities. Notable ESG investments include Assent, Eco Material Technologies, FlexXray, Fortius, Gradiant, Monolith, PTSG, Scale Microgrid Solutions, Solar Mosaic, and TRC.
“As one of the leading platforms in the carbon management and environmental solutions space, ClimeCo has the unique opportunity to help clients reach their sustainability goals. We strongly believe in the transition to a low-carbon economy, a shift that builds upon our experience investing in renewables, energy transition, and decarbonization investments for the past two decades. Our investment in ClimeCo underscores our commitment and thesis-driven approach to investing in innovative decarbonization platforms,” says Jeff Luse, Principal, Warburg Pincus.
“ClimeCo has built a premier decarbonization platform, supported by a strong reputation and track record of execution. We are excited to partner with Bill and the ClimeCo team to support the company’s mission to provide the market with leading sustainability solutions, helping clients identify and manage climate risks while offering cost-effective decarbonization solutions that are critical to catalyzing a transition to a low-carbon economy,” added Leela Ramnath, Senior Vice President, Head of ESG, Warburg Pincus.
Luse and Ramnath will serve on ClimeCo’s board of managers. Their experience will help ClimeCo with business scaling strategies and global ESG depth and reach.
The Heritage Group is a fourth-generation, family-owned business, managing a diverse portfolio of companies specializing in heavy construction and materials, environmental services, and specialty chemicals. With more than 5,000 employees and 30 operating companies worldwide, The Heritage Group aims to build a safer, more enriching and sustainable world by harnessing the power of family.
“The Heritage Group has been working closely with the ClimeCo team for several years, and this latest investment symbolizes our optimism about the continued growth of this platform and its efforts toward decarbonization,” says Chad Peterson, president of Heritage Sustainability Investments (a subsidiary of The Heritage Group). “We are excited to support this next chapter of growth for Bill and the entire ClimeCo team.”
Peter Lux, president of Heritage Interactive Services, will join Peterson to serve on ClimeCo’s board of managers. The Heritage Group’s knowledge of waste optimization and over 50 years of leading waste reduction efforts in the circular economy will provide ClimeCo with unique perspectives on environmental solutions as it further develops comprehensive sustainability offerings.
Latham & Watkins LLP served as legal counsel to ClimeCo. Cleary Gottlieb served as legal counsel to Warburg Pincus. Paul Hastings served as legal counsel to The Heritage Group.
ClimeCo is a respected global advisor, transaction facilitator, trader, and developer of environmental commodity market products, projects, and related services. We specialize in voluntary carbon, regulated carbon, renewable energy credits, plastics credits, and regional criteria pollutant trading programs. Complementing these programs is a team of professionals skilled in providing sustainability program management services, and developing and financing of GHG abatement and mitigation systems.
For more information or to discuss how ClimeCo can drive value for your organization, contact us at 484.415.0501, [email protected], or through our website climeco.com. Follow us on LinkedIn, Facebook, Instagram, and Twitter using our handle, @ClimeCo.
About Warburg Pincus
Warburg Pincus LLC is a leading global growth investor. The firm has more than $73 billion in assets under management. The firm’s active portfolio of more than 235 companies is highly diversified by stage, sector, and geography. Warburg Pincus is an experienced partner to management teams seeking to build durable companies with sustainable value. Founded in 1966, Warburg Pincus has raised 20 private equity and 2 real estate funds, which have invested more than $100 billion in over 1,000 companies in more than 40 countries. The firm is headquartered in New York with offices in Amsterdam, Beijing, Berlin, Hong Kong, Houston, London, Luxembourg, Mumbai, Mauritius, San Francisco, São Paulo, Shanghai, and Singapore. For more information, please visit www.warburgpincus.com. Follow us on LinkedIn.
About The Heritage Group
The Heritage Group, founded in 1930, is a fourth-generation, family-owned business, managing a diverse portfolio of more than 30 operating companies in heavy construction and materials, environmental services and specialty chemicals. With operations in North America, Europe and Asia, and a client network that spans the globe, The Heritage Group’s focus is on innovation, quality and service. Headquartered in Indianapolis, its purpose is to build a safer, more enriching and sustainable world by harnessing the power of family. Learn more at www.thgrp.com.
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