Power Sustainable, a subsidiary of Power Corporation of Canada, has launched a $330 million private equity strategy focused on accelerating decarbonization in North America. The fund, backed by major institutions like Canada Life and Export Development Canada, targets established U.S. and Canadian middle-market companies in high-impact sectors such as energy, industry, transportation, and the built environment. Rather than speculative startups, the focus is on proven businesses that need capital and support to scale their climate-positive solutions. Led by Karine Khatcherian and Martin Aares, the strategy emphasizes collaboration with management teams to build long-term resilience and sustainability. This initiative signals a growing role for private capital in bridging the climate investment gap and future-proofing the economy.
In a bold push to green the backbone of the North American economy, Power Sustainable—a subsidiary of Power Corporation of Canada—has launched a private equity strategy laser-focused on decarbonization. With over $330 million already committed, the fund targets companies reshaping critical sectors like energy, industry, transportation, and the built environment.
Backed by major players including Canada Life, Export Development Canada, and Fonds de solidarité FTQ, the initiative could be a game-changer for climate-smart innovation at the heart of the middle market.
Bridging the Climate Investment Gap
The new fund, Power Sustainable Decarbonization Private Equity, sets its sights on U.S. and Canadian companies that are already making a dent in emissions—but have the potential to do much more. These are not risky startups or moonshot technologies. They're proven businesses needing capital and guidance to scale sustainably.
“There’s a clear gap in middle-market strategies focused on climate,” said Managing Partner Karine Khatcherian. “We believe this creates a compelling opportunity to invest in and scale the ecosystems and supply chains that support the energy transition.”
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Partners in Progress
At the helm of the strategy are Khatcherian and Martin Aares, who both joined Power Sustainable in 2023. Their goal: to build deep partnerships with management teams whose products and services are already moving the needle on emissions.
“We’re not just investing—we’re collaborating,” Aares explained. “The companies we back are building the next-gen economy, and we’re here to help them grow with strength and resilience.”
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A Bigger Picture
The launch comes amid growing recognition that decarbonization can’t be achieved through policy alone. Private capital has a crucial role to play—especially in hard-to-abate sectors where innovation must be matched with operational muscle.
By fueling growth in companies that can scale sustainably, Power Sustainable hopes to accelerate not just environmental impact, but economic transformation across borders.
Why It Matters
From clean industrial processes to low-emission logistics, the ripple effects of this fund could reach far beyond its portfolio. It's a signal that capital markets are starting to match the urgency of the climate crisis with strategic, long-term investment.
Khatcherian summed it up: “This is about building climate resilience into the DNA of the economy. It’s not just smart investing—it’s future-proofing.”
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