Eurazeo eyes 750 mln euros for new planetary boundaries fund
Company corrects first paragraph to show fund is targeting at least 750 mln euros, not up to 750 mln euros
Fund to focus on small, mid-market companies
Former Canada climate minister among advisers
20% of carried interest to be linked to impact
By Simon Jessop
LONDON, May 23 (Reuters) -French private equity investor Eurazeo EURA.PA plans to raise at least 750 million euros ($813.08 million) for an impact-focused buyout fund targeting companies helping the world operate within its ecological limits, an executive told Reuters.
The Eurazeo Planetary Boundaries Fund is based on the scientific concept of 'planetary boundaries', which define thresholds on everything from pollution to biodiversity loss within which the world must remain to be habitable.
Using the scientific criteria as a guide, the fund will invest in small and mid-market companies focused on the regenerative and circular economy or which are helping the world transition and adapt to a climate-friendly future.
Primarily investing in firms based in Europe, the fund will focus on sectors including agriculture, waste and low-carbon energy, and 20% of the fund's carried interest - the share of profits paid to the fund manager - would be linked to achieving portfolio level impact.
The fund's launch comes as companies and the broader economy in Europe begin the move to a more circular economy, where less materials are used and more are reused or recycled.
That shift, part of the European Union's efforts to meet its climate goals, is now starting to come through in the form of tighter rules around water usage, textiles, plastics and packaging, Managing Partner Sophie Flak said.
"Companies and the economy are finally ready for it," Flak said. "We are seeing some small and mid-size companies which have products, services or technology which are addressing the planetary boundaries."
"They need money and expertise to scale and become champions," she added, citing the example of a firm that has developed technology to line water pipes and reduce leakage.
The fund will also be supported by an advisory board of sustainability experts including the former head of the European Environment Agency, Hans Bruyninckx; and Catherine McKenna, Canada's former minister of environment and climate change.
Others on the board include Club of Rome Co-President Sandrine Dixson-Decleve, L'Oreal's former sustainable innovation director Lauren Gilbert, and IKEA's former head of sustainability Pia Heidenmark Cook.
The board would advise on the fund methodology and impact of potential investments against each of the nine planetary boundaries, as well as help attract investors to the fund, Flak said. Impact and financial performance would be assessed yearly.
After investing, the fund would spend 12-18 months analysing each before agreeing a binding progress plan with management, Flak said.
($1 = 0.9224 euros)
Reporting by Simon Jessop; Editing by Sonali Paul
Activos relacionados
Últimas noticias
Descargo de responsabilidades: Cada una de las entidades de XM Group proporciona un servicio de solo ejecución y acceso a nuestra plataforma de trading online, permitiendo a una persona ver o usar el contenido disponible en o a través del sitio web, sin intención de cambiarlo ni ampliarlo. Dicho acceso y uso están sujetos en todo momento a: (i) Términos y Condiciones; (ii) Advertencias de riesgo; y (iii) Descargo completo de responsabilidades. Por lo tanto, dicho contenido se proporciona exclusivamente como información general. En particular, por favor tenga en cuenta que, los contenidos de nuestra plataforma de trading online no son ni solicitud ni una oferta para entrar a realizar transacciones en los mercados financieros. Operar en cualquier mercado financiero implica un nivel de riesgo significativo para su capital.
Todo el material publicado en nuestra plataforma de trading online tiene únicamente fines educativos/informativos y no contiene –y no debe considerarse que contenga– asesoramiento ni recomendaciones financieras, tributarias o de inversión, ni un registro de nuestros precios de trading, ni una oferta ni solicitud de transacción con instrumentos financieros ni promociones financieras no solicitadas.
Cualquier contenido de terceros, así como el contenido preparado por XM, como por ejemplo opiniones, noticias, investigaciones, análisis, precios, otras informaciones o enlaces a sitios de terceros que figuran en este sitio web se proporcionan “tal cual”, como comentarios generales del mercado y no constituyen un asesoramiento en materia de inversión. En la medida en que cualquier contenido se interprete como investigación de inversión, usted debe tener en cuenta y aceptar que dicho contenido no fue concebido ni elaborado de acuerdo con los requisitos legales diseñados para promover la independencia en materia de investigación de inversiones y, por tanto, se considera como una comunicación comercial en virtud de las leyes y regulaciones pertinentes. Por favor, asegúrese de haber leído y comprendido nuestro Aviso sobre investigación de inversión no independiente y advertencia de riesgo en relación con la información anterior, al que se puede acceder aquí.
