Azimut Group and Eni Next launched a €100 million European Long Term Investment Fund (ELTIF) on September 30, 2025, to back clean tech startups in decarbonization, energy efficiency, sustainable mobility, and circular economy. Luxembourg-domiciled, the fund leverages Azimut’s private market expertise and Eni Next’s technical advisory to target high-potential U.S. and global startups. Open to institutional and private investors under ELTIF 2.0, it aims to drive $500 million in energy transition impact. With clean tech needing $4 trillion yearly, can this fund scale innovation, or will regulatory delays and market risks limit its $1 billion potential?

Fund Structure and Focus

The €100 million ELTIF, pending Luxembourg authority approval, focuses on seed to Series A startups, with 60% targeting U.S. firms and 40% open to Europe and beyond. Investments, averaging €5–10 million per startup, support technologies like carbon capture (e.g., Captura’s ocean CO2 removal) and energy storage (e.g., EnergyDome’s CO2-based systems). Azimut handles structuring and distribution, managing $90 billion in assets, while Eni Next, with $400 million invested in 20+ startups, provides technical due diligence. The fund, costing $2 million to launch, aims for 10–15 portfolio companies by 2027.

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Why It Matters?

Clean tech investments hit $1.8 trillion globally in 2024, but only 10% target early-stage startups, per BloombergNEF. The ELTIF addresses this gap, supporting innovations that could cut 0.5 GtCO2e yearly, against 35.6 billion tonnes of global emissions. U.S. startups, like EnergyX’s lithium extraction, align with Eni Next’s portfolio, while sustainable mobility ventures, like EV charging solutions, tap a $1 trillion market by 2030. The ELTIF 2.0 framework, easing retail access, could unlock $50 billion in European private capital, per ESMA, amplifying impact.

Strategic Collaboration

Azimut’s 20-year private market experience, with $10 billion in alternative assets, pairs with Eni Next’s expertise in energy tech, backing firms like Synhelion’s solar fuels. Eni Next’s advisory role, leveraging Eni’s $2 billion R&D budget, ensures high-impact picks, with 70% of past investments achieving follow-on funding. The partnership, rooted in U.S. hubs like Boston, targets 20% IRR, aligning with Azimut’s €470 million sustainability investments since 2022.

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Challenges to Scaling

Only 30% of clean tech startups reach Series B due to high capital needs ($20 million average), per PitchBook. Regulatory delays, with ELTIF approval pending, could push launch to Q1 2026, costing $1 million in lost opportunities. U.S. focus risks overlooking Europe’s 4000+ clean tech SMEs, per EU-Startups, while geopolitical tensions, like U.S. tariffs, raise costs by 10%.

What’s Next for the ELTIF?

By 2028, the fund aims to deploy €100 million across 15 startups, targeting 0.1 MtCO2e reductions and $200 million in follow-on funding. Azimut plans a €200 million follow-up ELTIF in 2027, while Eni Next explores hydrogen and bioenergy ventures, backed by $100 million. Integration with EU’s €4.8 billion Innovation Fund could amplify impact, per CINEA. Against a $4 trillion clean tech gap, the fund’s role is small but could catalyze 0.01% of global decarbonization.

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