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Venture capital funds and private equity houses are forecast to invest 325m in UK cleantech sector in 2011
Improving costs, favourable incentives, and evolving pressure to meet renewable portfolio standards driving investment.
13,000 jobs will be created in the UK cleantech sector in 2011 thanks to investment from venture capital funds and private equity houses, according to Kinsey Allen International, the global executive search firm.
Kinsey Allen International forecasts investment in the UK cleantech sector will rise from 166m in 2010 to 325m in 2011. Investment in the sector has increased by an average of 17% quarter on quarter since the start of 2009. As a result the cleantech industry can expect investment of nearly 325m over the course of next year.
Analysis of the Californian cleantech sector has shown that for every 64m invested in the industry, 2,700 jobs are created. Applying this model to the UK the sector can expect job growth in the region of 13,000 in 2011.
Job creation will be split across the businesses associated with the cleantech sector both directly within cleantech companies, and indirectly within the funds that invest in them, and the professional services firms advising these companies.  
Falling set up costs, favourable tax credits, evolving pressure to meet Renewables Obligations, and other government incentives have driven investment particularly in renewable energies such as wind and solar.
M&A activity around cleantech innovation and interest in company flotations will play an important role in maintaining the levels of investment activity. The increase in investment means there will be future opportunities for investment banks to win capital markets mandates, as successful companies will need more funding, make acquisitions or go public.
Zoe Bennett, head of Kinsey Allen Cleantech, said:
The cleantech sector is forging ahead in size and strength. More and more investors are piling in as businesses and industries grow confident of the returns available from green business. This growth will not only have a positive impact on the environment, it will also boost the number of jobs in the sector. Not only will larger sums of money pumped into cleantech companies and projects mean more jobs on the technical side but demand for talented business focussed individuals will increase further to ensure these investments pay. 
Within cleantech start-ups, remuneration is much more weighted towards equity than cash in ways that have echoes of the dot com boom ten years ago. For CEO's this can be in the range of 5-15% although investors are far more savvy about the use of equity as an incentive than they were in the heady days of internet IPO's. Although, given the scarcity of CEO's with experience in this sector, there can still be some extremely attractive packages on offer.
As a result of the projected growth in the sector Kinsey Allen International has launched Kinsey Allen Cleantech. A division devoted exclusively to the cleantech market. Based in London the team will be led by Zoe Bennett, a consultant with over five years executive search experience in the cleantech sector.
Commenting on the launch of Kinsey Allen Cleantech and Bennetts appointment, Ken Brotherston, CEO of Kinsey Allen International, said:
The launch of Kinsey Allen Cleantech is an indicator of the growing importance of this industry in the UK. Weve been operating on a global level in the sector for a number of years but with the expansion of the cleantech industry, now is a prime time to be launching a specialist team. We know Zoe will be able to capitalise on the growth forecast for next year and help many businesses looking to expand within this rapidly evolving sector.


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