The long-term outlook for the cleantech sector remains positive, despite the recent slump in private equity investment, according to a report from alternative investment research firm Preqin.

The report found that although private equity investment in cleantech has fallen this year, growing numbers of investment funds are expressing interest in the market.

Prequin’s research showed that between 2004 and 2008, the number of funds with a cleantech focus worldwide quadrupled to 117, while the number of funds dedicated exclusively to cleantech grew from nine in 2004 to 39 last year.

“Despite the slowdown in the global economy, this sector seems set to continue its growth with a total of 78 clean tech-focused funds currently in market seeking investment,” said the report. “It is likely that we will see a record number of funds commencing investment in the clean tech sector during 2009, both in terms of solely clean tech-focused funds and in terms of funds that include clean tech among a number of industries they invest in.”

Report author Tim Friedman said the growth in the private equity cleantech market “ties in with the increasing consumer and investor awareness of climate change and environmental issues, growing levels of regulations and incentives provided by national governments and the ever-increasing global demand for energy and improvements in technologies within the clean tech sector.”

The report also considers the international nature of cleantech investment, noting that 45% of the funds are based in North America, 36% in Europe and 19% in Asia and the rest of the world.

RELATES LINKS:

Preqin Special Report: Private Equity Cleantech (PDF)

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