Italian company Ambienta has raised Europe’s largest private equity cleantech fund at €217.5m ($321m), tapping into the demand for the sector which has outperformed amid the fundraising downturn.

The fundraising marks the firm's first fund and is likely to be viewed as a success given that much of it was raised during a difficult fundraising market. The firm managed a first close at €123.75m ($182.26m) in February last year.