About episode
I’m always excited to talk to climate investors who have been around for a bit, those who were investing during the Cleantech 1.0 phase, saw the ups and the downs, and have stuck through to our current climate tech boom. Some of the challenges that the earlier era of cleantech investing saw – like high capex and long payback periods – are still relevant today, and experienced investors offer nuanced insights into current opportunities and what the future might hold.
I was thrilled to talk to Greg Wasserman. Greg started investing in clean energy almost 20 years ago at Goldman Sachs. I’ll let you hear the twists and turns of his background directly from him, but suffice to say he fits the bill of someone who’s worn multiple prestigious hats to finance climate solutions. Greg recently closed a new $385 million climate fund at Wellington Management, one of the world’s largest independent investment management firms with over $1 trillion AUM.
We talk about Greg’s journey, how climate investing has changed, what he’s currently excited about, opportunities for the future, and much more.
In today’s episode, we cover:
- [3:03] Greg’s background & what got him interested in climate investing
- [5:30] Greg’s experience at Goldman Sachs
- [6:54] Greg’s experience at the Clinton Foundation
- [9:47] Greg’s experience at Generation Four Investment Management
- [13:53] Wellington & what it’s known for
- [15:19] Wellington’s Climate Fund
- [17:42] Leveraging resources & resources for Wellington’s fund
- [20:20] The state of climate investing
- [22:32] Interesting innovations & where the fund is focused
- [24:40] The influence of blockchain technology in climate solutions
- [26:28] Measuring impact for the fund
- [29:14] Wellington’s investment in Orennia
- [31:54] Wellington’s investment in SPAN
- [34:56] What’s coming in the next 5-10 years for climate investing
Greg’s background & what got him interested in climate investing
Greg began his career at Goldman Sachs over 20 years ago, initially focusing on specialty finance within the firm’s principal investing business, which later became the special situations group. After several years, he grew bored with the routine nature of those investments and sought a more dynamic area. In 2005, following the passage of the U.S. Energy Policy Act, which introduced the first significant incentives for renewables, senior management recognized his interest in new challenges and invited him to explore alternative energy investing. Although he had no prior experience in energy or climate change, he was intrigued by the technology and decided to make the shift, marking the beginning of his journey into climate investing.
Wellington & what it’s known for
Wellington Management is one of the largest independent asset managers globally, with a history spanning nearly a century and managing over a trillion dollars in assets across both public and private markets. While most of their assets under management (AUM) are in public equities, public debt, and other major asset classes, the firm is known for its active management approach, focusing on generating alpha rather than employing passive strategies like index funds. Wellington is recognized for its deep research culture, where research is shared across the platform but investment decisions are decentralized, allowing individual investors to make decisions based on central research.
Wellington’s Climate Fund
Greg expressed excitement about successfully raising Wellington’s first climate fund, which is just under $400 million, despite the challenging fundraising environment caused by a reset in private markets following the froth of 2021. As a new strategy and first-time fund, the process took longer and was more difficult than anticipated, but they are now actively investing with exceptional clients. The fund focuses on climate solutions, investing in companies that address the causes of climate change by mitigating carbon emissions or helping society adapt to its impacts, such as extreme weather events. The fund targets early growth-stage companies with proven, commercially viable technologies, focusing on areas like energy transition, food and agriculture, enterprise digitization, industrial optimization, and transportation. Their strategy emphasizes value-driven use cases, often favoring digital and asset-light solutions over heavy science and regulatory-driven ones.
Resources Mentioned
Connect with Greg Wasserman
- Connect with Greg on LinkedIn
Connect with Jason Rissman
Keep up with Invested In Climate
- Sign up for our Newsletter
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