The Global View

Morgan Stanley invests in green VCs

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Must be a bit of a change for VCs when they get bought. I wonder if they sit down with their glasses of Krug and pause to contemplate ‘now we know how it feels’. A beautiful picture indeed.

Perhaps that’s how it is at VC firm NGEN Partners now that Morgan Stanley have bought a stake in them.

This investment, the first by a major Wall Street firm in a clean technology venture firm, underscores Morgan Stanley’s commitment to finding market-based solutions to environmental issues, as well as its belief in the business opportunities that stem from sustainable global development.

Founded in 2001, NGEN Partners is a pioneering investor in the cleantech sector. The firm has deep expertise and a strong portfolio of companies in the areas of alternative energy, energy efficiency, pollution abatement and green resources.

“Our stake in NGEN represents an exciting investment opportunity for Morgan Stanley that we believe can help deliver attractive returns both for our shareholders and the environment. NGEN’s experienced team of investment professionals has an impressive history of identifying companies that are developing and bringing to market innovative clean technologies,” said Jeff Holzschuh, Chairman of the Morgan Stanley Environmental Committee. “And, we believe there will be an increasing investment focus on these technologies in the years ahead as a result of rising energy prices, natural resource constraints and acceptance of climate changes as a global challenge.”

Jim Butcher, Director of Morgan Stanley’s Office of the Environment, said, “The investment in NGEN builds on the actions that Morgan Stanley has taken in recent years to promote innovative solutions to environmental challenges, including the recent launch of the Morgan Stanley Carbon Bank to assist clients seeking to become carbon neutral. We are committed to considering environmental issues in all aspects of our business and assisting our clients as they do the same, and we believe this investment will allow us to leverage NGEN’s expertise in Morgan Stanley’s own advisory work.”

Oddly for a bunch of money men, there’s no figure on the deal.