Global carbon and environmental commodities market infrastructure platform Xpansiv announced today that it has closed a capital raise of $125 million, with proceeds aimed at supporting growth in the company’s service offerings and technology platforms.
The capital raise follows a $400 million capital raise in Xpansive last year, led by alternative asset manager Blackstone. New strategic investors participating in the financing included Bank of America and Goldman Sachs.
Jim DeMare, President of Global Markets at Bank of America, said:
“Sustainability is part of discussions in boardrooms and with investors. Robust technology, reliable data, and accessible spot markets are crucial to promote liquidity and scale growth in voluntary carbon trading and environmental commodities. Bank of America supports innovation in these evolving markets.”
Xpansiv provides infrastructure enabling market participants to value and exchange environmental commodities such as carbon, energy and water, and provides market data for voluntary carbon offsets, renewable energy credits (RECs), and low-carbon fuels. The company’s business units include ESG commodities spot exchange CBL, Australia-based water spot exchange H2OX, market data provider XSignals, and ESG-inclusive commodities multi-registry portfolio management system EMA.
The investments come as environmental commodity marketplaces, and particularly those for carbon markets, are anticipated to see significant expansion over the coming years, as companies and businesses increasingly launch net zero ambitions, and turn to carbon offsets and credits as a bridge to their own absolute emissions reduction efforts, or to balance difficult to avoid emissions.
Patrick Street, head of Goldman Sachs’ Global Markets Net Zero Solutions, said:
“The development of a robust and transparent infrastructure for environmental markets plays a key part in driving energy transition and broader decarbonization. We support Xpansiv’s effort to develop market infrastructure and trade advisory services to deliver seamless environmental solutions to companies globally.”
Alongside the capital raise, Xpansiv also announced the closing of its acquisition of environmental markets transaction and advisory services provider Evolution Markets. According to Xpansiv, the transaction will expand its service offerings and product development capabilities, and enhance Evolution Markets’ services to its global client base of 2,000 customers, including many of the world’s largest energy firms, companies, utilities, and financial institutions.
The transaction is the second recent acquisition for Xpansiv, following its purchase of energy and environmental markets registry infrastructure provider APX in August.
John Melby, CEO, Xpansiv, said:
“Evolution Markets brings a world-class team of professionals with the same level of focus and dedication to enabling the energy transition and delivering client successes that we strive for every day. We are excited to work with them and our clients to build the future of environmental markets. Our disciplined acquisition strategy is made possible through the backing of top-tier strategic investors, who share our belief in the environmental markets’ important role addressing the climate crisis.”