CalCEF Clean Energy Fund
5 Third St. Suite 1125
San Francisco, CA 94103
P: 415 957 0167  F: 415 957 0177
general info: info@calcef.org

CalCEF’s Investment Mission: The serial creation of investment vehicles that address critical gaps in the infrastructure of clean energy finance.

The California Clean Energy Fund (CalCEF) was formed in 2004 to accelerate investment in California’s clean energy economy. The Fund arises from the California electricity crisis of 1999-2000 and the bankruptcy settlement negotiated by the California Public Utilities Commission (CPUC) and Pacific Gas and Electric Company (PG&E). CalCEF is a non-profit entity, but will make for-profit investments via a number of investment strategies and partnerships. As an “evergreen” fund, any profits will be reinvested in companies and programs that support CalCEF’s mission of driving change in the energy system.

The first CalCEF investment vehicle, CalCEF Fund I, employs an innovative nonprofit, evergreen fund-of-funds model to achieve broad diversification in its portfolio. In this Fund, CalCEF is an active, strategic limited partner in three established venture firms – Nth Power, Element Partners, and VantagePoint Venture Partners.

In 2008 CalCEF launched its second investment vehicle, the CalCEF Clean Energy Angel Fund I, to focus capital and entrepreneurial support at the earliest stages of company formation.

In all of CalCEF’s investment programs, we seek to provide a new style of investment intelligence - one that is deeply attuned to and supportive of both the public policy process and the life-cycles of new technology development. The clean energy transition cannot succeed without guidance and support from policy. This guidance and support creates an opportunity for meaningful public-private partnerships, and entrepreneurs and financiers that understand these partnerships are best positioned to succeed in the clean energy transition.

Going forward, CalCEF’s investment agenda will continue to be driven by the needs of clean energy markets and technologies as they grow and achieve scale. Our fund-of-fund portfolio of more than 40 companies, and our relationships with the venture funds that seek to develop them, provides constant insights into the multiple challenges facing this maturing industry.

In 2008 CalCEF announced the creation of two new initiatives:

The CalCEF Clean Energy Angel Fund I
CalCEF is the founding Limited Partner in this fund, designed to address a persistent and increasingly significant problem in the clean energy industry: the absence of funding for companies at the earliest stage of their development. The Angel Fund is a separate, for-profit entity, and brings together individuals and institutions with both capital and expertise in the development of new technology companies.

CalCEF Innovations
Since 2005 CalCEF has dedicated a portion of its resources to the convening of critical conversations at the intersection of clean energy policy, technology and finance. The launch of the Center as a charitable 501c3 organization will enable CalCEF to significantly expand this role as the clean energy industry matures, revealing critical new issues affecting the long-run flow of capital into the infrastructure of sustainable energy.

Source of Funds
CalCEF’s initial funding of $30 million comes from PG&E shareholders. The funding schedule extends over a five-year period as follows: $2 million in 2004, $4 million in 2005, $6 million in 2006, $8 million in 2007, and $10 million in 2008. PG&E’s role in CalCEF is limited to providing the initial $30 million in funding and appointing three of the initial nine Board members. PG&E has no control over CalCEF operations or investments, will not profit from positive returns on CalCEF investments, and does not have the ability to remove the directors it appointed or to designate the replacement of any directors it appointed who leave the Board for any reason.