Private equity sticks with clean tech

Despite tumultuous global financial market conditions, private equity investments in the clean technology ("cleantech") space showed resilience last year. Investors are reconsidering their overall exposures to private equity -- and this includes cleantech -- but they are still operating in the space and remain open to the right opportunities, according to a new report by Private Equity Intelligence, Ltd. (Preqin).

Since 2003, the story in the cleantech sector of the private equity space has been one of aggressive growth. From only seven funds involved in cleantech investments in 2003, the number swelled to 30 in 2004 and nearly quadrupled -- to 117 -- by 2008. The number of strictly cleantech funds grew aggressively, as well, from nine in 2004 to 41 in 2007. The pure-plays fell slightly to 39 last year, suggesting that the market was holding steady.