London-based investment firm Climate Change Capital announced today that it closed a $271.5 million fund.

The group said it is targeting high growth areas of cleantech in Europe with its Climate Change Capital Private Equity Fund.

Investors include AlpInvest, Robeco, HSBC, USS, Alliance Trust, Bankinter, Woelbern Group and Harcourt.

"The European clean technology market offers the potential for excellent returns and we are confident that we will be seen as a partner of choice by companies in this market, whose growth we feel we can support both through capital and access to CCC's international network," said Simon Drury, partner at Climate Change Capital Private Equity Fund.

Climate Change Capital said the closing of this fund brings its assets under management to over $1.5 billion.

Last year, the company closed its C4FII fund at $1.09 billion, which it said is the world's largest private sector carbon fund.

"We are furthering our reach and knowledge in this very high growth and important sector and we look forward to developing further funds to direct capital to de-carbonise our economies," said Climate Change Capital CEO Mark Woodall.

The company said the Climate Change Capital Private Equity Fund invests in expansion and later stage companies, including buyouts, with a targeted investment size of $6.8 million to $27.3 million per portfolio company.