It's great to do big things and change the world, but the pension funds backing Fred want to earn a good return.
Renewable energy assets have a pretty good IRR, in the mid-teens to low 20% - and even higher if you look at the 1995-2004 vintage.
To any LP that is an above average return, in fact, it is above any equity return threshold for asset manager incentives/carry.
Where did you get the data for you to say that "they've been pretty bad"?
http://books.google.co.uk/books?id=6BLqprHdwygC&lpg=PA15...
returns for the most successful railroad companies were mere 5% - competition kept things down (although speculation in early years lead to phenomenal returns - if sold)
However, a moderate VC return is 3fold over ten years - which is ~12.5% YoY (unless my maths is bad). But then that is 12.5% of millions and millions not just one company.
The IRR numbers I mention refer to UFCF/equity, i.e. no exit (hence return) via company/asset sale.
Making 15-20% without an exit is a great deal - supporting I think your point.
Is that what you mean - or derivatives?