European buyout house EQT has launched a €4bn-targeting impact-driven longer-hold fund to invest in mature, high-quality companies with market shaping impact potential. Paul Polman, former CEO of Unilever and UN Sustainability Ambassador will co-chair a Mission Board that provides strategic direction and impact-focused advice to the vehicle.
The firm said investments of the EQT Future Fund will be made in line with three key objectives, namely to safeguard resources and protect the climate, improve mental and physical health and create equality of opportunity.
The fund’s investments will have clear impact thesis to achieve asset-specific and portfolio-level KPIs including the reduction of GHG emissions, improved employee wellbeing and increased gender diversity, the firm said.
Paul Polman said, “There is an enormous opportunity to invest in businesses that give back more than they take and I am a firm believer that success will come to those who focus on solving the world’s problems. I share this mindset with EQT and I am therefore excited to join the EQT Future Mission Board to support a strategy clearly geared towards investing in companies that are, or have the potential to, change industries for the better. As Co-chair, I will focus on the purpose and impact thesis of EQT Future’s investments and leverage my network to connect the team with the right skills and people.”
Christian Sinding, CEO and managing partner of EQT, said, “EQT Future is an important strategic move for EQT as a firm. Together with our Science Based Targets and EQT Future’s impact-driven investment thesis, we are raising the bar for EQT and all our investment strategies. By combining EQT Future with our firm-wide approach to embed positive impact into every investment, we have the best possible foundation to grasp the most exciting opportunity, and responsibility, of our time – to support businesses that can accelerate transformational change for the benefit of the environment and society at large.”
EQT soared to a €15.6bn final close for its ninth flagship fundraise in April, beating even its hard cap after successfully navigating the Covid-affected capital raising market.
Private equity firms have picked up on launching impact-driven funds.
Amundi raised €650m for Amundi Senior Impact Debt IV and is targeting €1bn for a final close last month.
German buyout house Golding Capital Partners has also launched its debut impact fund of funds with a €300m target in September, aiming for a net IRR of 12% to 14%.
Australian venture capital firm Investible launched an A$100m fundraise earlier in the month amid a ‘once in a generation’ opportunity caused by the climate emergency and global tailwinds in the sector.
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