Suncor contributed to the second close of cleantech-focused venture firm ArcTern's second fund, which is now working towards an expanded target.

Canada-based venture capital firm ArcTern Ventures has reached a C$165m ($124m) second close for its Fund II having raised capital from limited partners including crude oil producer Suncor.

Financial services firm TD Bank also contributed to the second close, along with the Canadian government-owned BDC Capital, family offices including The Ivey Foundation and an undisclosed pension fund.

ArcTern Fund II is anchored by energy company Equinor and pension fund manager Omers, and ArcTern announced the extra capital along with news it has increased the vehicle’s target size from C$150m to C$200m. The firm had secured $46m for its first close in October 2018.

ArcTern invests in clean technology developers and has built up a 13-strong portfolio, its most recent investment being a contribution to the $37m round recently completed by compressed-air energy storage technology developer Hyrostor.

Areas of interest for the firm include clean energy, energy efficiency and management systems, advanced manufacturing, mobility, resource efficiency, food and agriculture.

Tom Rand, one of ArcTern’s two managing partners, said: “Cleantech investing is a team sport, which is why we are excited to have united such a powerful and forward-thinking group of investor partners.

“Our leadership, coupled with their capital commitments, expertise and global connections will help drive the growth of our investee companies with the goal of transforming them into global market leaders.”