A few weeks ago, we started exploring thematic investing in private markets, where focus is shifting from traditional categories to structural trends that are reshaping economies.
First up: Energy Transition -a climate imperative and a multi-trillion-dollar investment opportunity spanning everything from grid infrastructure to green hydrogen. With its vast scope and urgency, this theme demands the right expertise, timing, and strategy.
Whether you're an LP reassessing exposure or a GP crafting a focused approach, it’s too important to overlook. Stay tuned for insights, data, GP profiles, and case studies.
In this issue,
We unpack the Energy Transition theme - a multi-trillion dollar opportunity in our latest blog post. From mature infrastructure to emerging innovations like green hydrogen, this new post breaks down the sectors, drivers, and risks LPs and GPs need to understand.
Our chart of the week is: the performance gap in climate focused funds.
The latest news from market players.
A warm welcome to Collyer Capital on the Orca platform.
Key PE events we are attending and you shouldn't miss out on.
Let’s dive in.
Best,
Kasper,
CEO & Co-founder Balentic
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Insights
New blog post: Energy Transition - a multi-trillion dollar investment opportunity for private markets
The global shift towards sustainable energy sources is reshaping the investment landscape, creating substantial opportunities for private market investors across private equity, infrastructure, venture capital, and private debt.
Understanding where these opportunities lie, and how best to capitalise on them, is crucial for LPs and GPs seeking robust returns alongside meaningful environmental impact.
This post dives into energy transition, the opportunity, the drivers and the risks, but first some key takeaways:
Energy transition presents a multi-trillion-dollar opportunity across private equity, infrastructure, venture capital, and private debt.
Private markets offer unique advantages due to long-term horizons, specialised expertise, and active ownership.
Significant opportunities lie within mature technologies and emerging innovations like green hydrogen and carbon capture.
Navigating regulatory complexity and technological risks requires sophisticated investor strategies.
Blackstone announced that Joseph Cassanelli, former Co-Head of Lazard’s U.S. Financial Institutions Group, has joined Blackstone Tactical Opportunities (Tac Opps) as a Senior Managing Director, focusing on investments in the financial services sector.
Low Carbon has submitted two Section 36 planning applications to the Scottish Government’s Energy Consents Unit for its proposed High Brenfield (62 MW) and Glen Lednock (118 MW) wind farms, marking a significant step forward in its onshore wind ambitions.
Actis enters into an agreement to acquire a portfolio of operational toll roads in Colombia from Sacyr for US$1.6 billion, using capital from its Long Life Infrastructure Fund 2 (ALLIF2).
Trucordia, a top 20 U.S. insurance brokerage, announced a $1.3 billion strategic investment from Carlyle’s Global Credit platform. The deal, which values Trucordia at $5.7 billion and is expected to close later this month, will help the company reduce leverage, repurchase units from minority investors, and simplify its governance.
Chart of the Week
The Wide Performance Gap in Climate-Focused Private Market Strategies
Source: Sifted, July 2024
Climate Investing: Top Quartile or Bust?
This chart from HarbourVest shows just how dramatically performance diverges across private markets in energy transition / climate-focused strategies, and it’s a wake-up call for LPs.
While one should always be careful comparing the sub-asset classes directly, not least on an IRR basis, it is still worth noting that top-quartile growth and buyout funds delivered eye-catching net returns of 25.4%, outpacing infrastructure core-plus/value-add (20.2%) and even infrastructure core (17.3%). At the other end of the spectrum? Bottom-quartile venture managers barely made it off the tarmac, posting a paltry 0.9%.
What this underscores is simple but critical: the dispersion in returns is extreme - and growing. Average and median figures hide the underlying volatility and risk of poor manager selection. Infrastructure strategies, often seen as “safe,” offer more predictable downside protection (e.g. bottom-quartile core still returned 5.9%), but come at the cost of lower upside. By contrast, growth equity and buyout strategies offer asymmetric upside - but miss the mark, and you’re likely to underperform even a conservative infra play!
This isn’t just a question of asset class it emphasizes the need to elevate sourcing and due diligence. With billions of institutional capital flowing into these strategies, the competition for quality is heating up fast. LPs need sharper tools, better data, and more targeted access to stay ahead - which is what Orca can help with.
For Energy Transition, the alpha lies not just in the theme, but in the GP, and the margin for error is thin.
Source: HarbourVest 2025
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Disclaimer: This is for informational purposes only and should not be taken as financial advice. Please conduct your own research and consult with a financial advisor.
Orca Highlights
Each edition, we spotlight a newly onboarded GP on Orca - giving LPs a direct look at fresh strategies and opportunities now live on the platform.
Welcome to Collyer Capital
We’re excited to welcome Collyer Capital to Orca. Founded in 2021 and based in Singapore, Collyer Capital is a boutique fund manager focused on high-growth markets across Asia, with a strong emphasis on Southeast Asia.
Using a hybrid fund of funds strategy that blends primary commitments, co-investments, and secondaries, the firm targets lower to mid-market SMEs driving regional development. Backed by deep local relationships and on-the-ground expertise, Collyer Capital delivers capital, strategic insight, and hands-on support to scale businesses and unlock sustainable growth.
SBIA Midwest Deal Summit & DeaLinx - 28-29 May 2025, Chicago, USA iConnections | MFA Global Alts New York 2025 - 9-10 June 2025, New York, USA ALTSNY - 10 June 2025, New York, USA SuperReturn International 2025 - 3-6 June 2025, Berlin, Germany 🐳
🐳Balentic will be present at this event. To meet Kasper Wichmann in person, book here
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Disclaimer: The information provided in this newsletter is for informational purposes only and should not be construed as financial or investment advice.
