The state of Louisiana has been through a lot in the last six years. Hurricanes Katrina, Rita, Gustav and Ike created federally recognized disasters and the state was impacted heavily by the Deepwater Horizon oil spill (aka the BP oil spill). It is as if the state has been in an ongoing recovery mode ever since 2005. It’s not all bad news for Louisiana, though. According to SAIL Sustainable Partners of Louisiana (SSP), the state has fared better than most others during the US economic recession. In fact due to the state’s economic stability, natural resources and tax incentives, SAIL Capital Partners, along with SSP, have decided to launch a capital fund that is designed to develop cleantech businesses in the area.
The Louisiana Sustainability Fund (LSF), as it is being called, is focused on investing in clean technology and sustainable industry and is expected to generate green jobs, make a positive environmental and economic impact, increase trade and develop sustainable business in the area.
SAIL’s statement indicates that the state was an attractive choice for the focus of the new private capital fund because “it comprises an opportune mixture of valuable resources and intellectual capital in the areas of energy, water and agriculture, coupled with strong tax incentives for businesses and pro-growth policies.” SSP Managing Partner R. Foster Duncan says the fund has potential to accelerate Louisiana’s push for supporting businesses that embrace sustainability and environmental stewardship whilst also providing the fund’s investors with attractive, conservative returns.
According to SAIL, sustainable investment is on the rise. New global investment in clean energy reached $243 billion in 2010, up from $186.5 billion in 2009, while venture capital and private equity investment in the industry grew 28%.