GLOBAL - Investors can exploit a renewed growth spurt in the global clean tech private equity market through targeted investments, according to Switzerland-based SAM.
In its second study 'Clean Tech Private Equity: Past, Present and Future', the asset manager found that the clean energy industry in particular looked ready to continue generating above-average growth due to profits from increasing cost competitiveness relative to conventional energy sources and strong demand for clean and safe energy solutions.
Additionally, a wide range of clean tech sectors will no longer depend on government subsidies in the future, while increasing opportunities for lucrative exits - such as IPOs, takeovers and mergers - could benefit private equity investors, according to the report.
Andrew Musters, head of private equity at SAM, said: "We have seen exit markets gain momentum because global corporations are buying up clean tech companies to drive the growth of their businesses.
"We have also noticed that leading pension fund advisers are increasingly urging their clients to invest in climate-sensitive sectors as a long-term hedge against climate-related risks."
The study also challenges the frequently heard concern regarding a supposedly overfunded industry.
While investments in clean energy technologies have increased steadily over the past few years, capital flow must continue to remain high in the coming years in order to reach the ambitious environmental targets set around the world, the study said.
More than $100bn (€69.6bn) needs to be invested in wind energy alone during the rest of this decade, and solar development will require similar investment.
These trends are further fuelled by current uncertainties regarding the future of nuclear energy and fossil fuels - all the while demand for renewable energy is particularly high in fast-growing emerging economies.
The report looks at five key clean tech sectors - wind, solar PV, e-mobility, sustainable building technology and smart grids - and highlights the most attractive investment opportunities for private equity investors.