Mirova, a subsidiary of Natixis Investment Managers, has launched an impact-focused private equity fund, seeking to raise â¬ 300 million from investors.
The vehicle, which is expected to have a first closure early next year and a final closure in December 2022, will be structured as a European Long-Term Investment Fund (Eltif) in order to ensure access to a larger group. wide of investors.
The fund, which has already attracted 30 million euros of seed, will be led by Marc Romano, who was hired in July to head the impact private equity funds.
“We have the firm conviction to contribute to the change facing humanity,” said Romano Citywire selector. âInnovation is at the heart of the solution and we want to contribute to companies that innovate with a positive impact on the environment.
The fund, which aims to invest between 5 and 20 million euros in generally minority-owned companies, will target companies that contribute to nine sustainable development goals related to the environment, including issues related to water, climate change and the circular economy.
Romano said the strategy would allocate around 80% of its capital to companies in Europe in five key sectors, including agritech and smart mobility.
The rest of the capital will be dedicated to opportunities outside Europe, mainly in North America and Israel, where there is a dynamic ecosystem of start-ups. Romano said he would look for companies that are either already profitable or will be in two to three years.
The fund has already made two investments and two more are in preparation.
âWe want the business to have a positive impact, but we also want businesses that implement appropriate ESG standards,â he added. “We expect that the majority of our capital contribution will be used for a capital increase with the aim of accelerating the growth of the company and improving our contribution to the impact, and only a part will be used to exit from existing shareholders. “
Half of the team’s share of the fund’s earnings, or carry, will be subject to the achievement of impact targets.
In order to ensure an independent evaluation, Mirova will have a committee, made up of some of the fund’s sponsors and independent professionals. When an investment is withdrawn, Romano said the impact will also be assessed by an independent third-party auditor.
Mirova, headquartered in Paris, manages $ 28 billion in assets and is certified B Corporation.