Here are the names of some very high-net-worth investors, and the companies they made their money with:
Jeff Bezos – Amazon
Richard Branson – Virgin
Michael Bloomberg – Bloomberg
Bill Gates – formerly Microsoft
Ray Dalio – Bridgewater Associates
Jack Ma – Alibaba
Reid Hoffman – Linkedin
Masayoshi Son – SoftBank
Each person in that list has a net worth of more than a billion dollars, most have double-digit billions.
It’s fair to say these people are good with money, and good at finding profitable investments.
And in terms of those investments, it turns out they are all invested in the same 15 companies, using the same investment vehicle.
This vehicle is a $1 billion investment fund called Breakthrough Energy Ventures (BEV).
It has a portfolio of 15 companies that it invests in. They are:
- Baseload Capital
- Boston Metal
- Carbon Cure
- Commonwealth Fusion Systems
- DMC Biotechnologies
- Fervo Energy
- Form Energy
- KoBold Metals
- Malta Inc
- Pivot Bio
- Quident Energy
- Sustainable Bioproducts
- Zero Mass Water
Now, it may not be obvious when you first look at that list, but those 15 companies all have something in common (aside from piquing the interest of a cabal of billionaire investors).
Have another look.
Can you spot the connection?
They are all what’s known as “clean energy” companies. Each of them is working on renewable energy or carbon reduction.
They essentially work in three main areas: energy generation, energy grids and energy storage.
That’s right, these billionaire investors are all putting their money into clean energy investment plays.
Why? (Aside from the feel-good factor) because there is now a massive amount of money flowing into this space.
According to reports from the International Energy Agency, electricity investments are flowing toward renewables, networks and flexibility, while at the same time more than 100 globally significant financial institutions have implemented policies restricting investments in carbon-intensive fossil fuels like coal.
That’s got investors — from major global investment banks to billionaire philanthropists such as Bill Gates, Jeff Bezos and Jack Ma — looking at renewable energy differently than they did just a few years ago. Shifts in energy market trends, investment patterns and the global mindset toward climate change are creating new rationales for investments in companies and projects in the clean energy space.
“In the last few years, the number of technologies ripe for investment has expanded dramatically,” said Ravi Manghani, research director for energy storage at Wood Mackenzie, an energy research and consultancy firm.
I thought this was an interesting development.
It’s unusual to be able to track down the investments of people like these so easily. (Here’s BEV’s website, if you’re interested – which lists its 15-company portfolio.)
But I guess when their investment is in something “virtuous”, people are a lot more inclined to be open about it.
Investors tend to be more guarded about money they’ve put into tobacco companies or weapons manufacturers.
But the main reason I thought this was interesting was because it really goes to show that money is moving into renewable energy investments. Big money.
And not just for the purpose of virtue signalling. This fund isn’t designed just to let billionaires show the world that “they care”. It is designed to bring them a decent return.
The bad news is, as far as I can see, none of those 15 companies are publically listed.
Here’s how you can invest in the clean energy sector for yourself
But the good news is, there are plenty of innovative clean energy investments that are publically listed – although many of the best can be hard to research and track down.
And in an industry so full of hopes and promises, it can be very hard to separate the genuine innovators from the shysters.
One man who can help you find the clean tech gems and avoid the blaggers is Eoin Treacy. Eoin has decades of investment experience, and many industry connections of his own.
He is trusted to manage more than $600 million, and specialises in tech investments. That’s why his flagship investment advisory here at Southbank Investment Research is called Frontier Tech Investor.
In the Frontier Tech Investor portfolio, Eoin has a number of promising clean energy companies on the cusp of making a big splash.
These range from British geothermal plays to solar power creators to cutting-edge fusion energy companies.
And you can get access to Eoin’s in-depth research on all of them when you take out a trial to Frontier Tech Investor.
Not only that, but you’ll also get a free copy of our publisher Nick O’Connor’s book, The Exponentialist. This book focuses on the key tech trends you can invest in right now that are set to explode in value over the next few years.
Clean energy, as you can probably imagine, has a big part in Nick’s book. And he shows a number of different ways you can invest in it.
So, if you’re interested in following in the footsteps of the world’s billionaires, and want to learn how to invest in clean energy companies for yourself. Get your trial to Frontier Tech Investor – and free book The Exponentialist – here.
Until next time,
Editor, Exponential Investor