J.P. Morgan Sustainable Growth Equity Makes First Investment

By David G. Barry

J.P. Morgan Asset Management’s recently formed sustainable growth equity team has made its first investment, backing a startup whose technology enables companies to monitor, report, and act on their carbon impact.
J.P. Morgan Sustainable Growth Equity led Arcadia’s $200 million round, which also included Keyframe Capital, Broadscale Group, Triangle Peak Partners and existing investors Camber Creek, Tiger Global Management, Wellington Management, Salesforce Ventures, Drawdown Fund and MCJ Collective. The Washington, DC-based company is now valued at $1.5 billion.
Arcadia aims to [CG1] provide access to comprehensive, accurate utility data – information that has often been a barrier for businesses looking to build climate tech and innovative energy products. The company’s customers include Ford, EnelX, Aurora Solar and Stem. It will use the capital to accelerate the impact of its data and API platform by expanding data coverage and new product development.
In a prepared statement, Tanya Barnes, co-managing partner, J.P. Morgan Sustainable Growth Equity, said that that Arcadia “is pursuing one of the largest software opportunities in the clean energy transition” and that it’s technology platform “plays a vital role in decarbonizing real estate, the grid and providing renewable energy access to underserved communities.” Barnes joined the unit earlier this year after heading Blackstone’s Impact Platform.
Osei Van Horne, the unit’s other co-managing partner, also in a statement called Arcadia “an exceptional first example” of the team’s “mandate to invest in climate technologies that deliver measurable solutions to the industries that produce the greatest greenhouse gas emissions.”
Situated inside J.P. Morgan Private Capital, SGE is seeking to invest in private high-growth companies that produce measurable, science-based commercially driven positive climate outcomes for the four industries that account for more than 80% of global greenhouse gas emissions: transportation/supply chain, real estate/built environment, industrials/manufacturing and food/agriculture industries. J.P. Morgan is investing up to $150 million in SGE.
J.P. Morgan Private Capital is part of J.P. Morgan Global Alternatives, the $215 billion alternative investment arm of J.P. Morgan Asset Management.