Generation closes US$1 billion sustainable solutions fund
Generation’s third and largest growth equity fund will invest in growth-stage companies accelerating the transition to a sustainable economy
Generation Investment Management LLP, a dedicated sustainable investment firm with approximately US$22 billion of assets under management, announced the close of its US$1 billion Generation IM Sustainable Solutions Fund III on May 21.
This fund builds on the firm’s 15-year commitment to investing globally in companies which it sees as accelerating the transition to a sustainable economy.
The new fund, Generation’s third and largest in its Growth Equity strategy, sits alongside its established public equity strategy, and enables Generation to make meaningful minority investments of US$50-150 million in innovative companies with high-growth potential.
“We believe that we are at the early stages of a technology-led sustainability revolution, which has the scale of the industrial revolution, and the pace of the digital revolution,” says Al Gore, chairman and co-founder.
“Globally, we see the rapid adoption of sustainable solutions at an important inflection point. By taking advantage of technology cost-down curves, companies can drive sustainable transition through profitable growth and innovative business models,” says Lilly Wollman, partner and co-head of the Growth Equity platform.
The Generation Sustainable Solutions Fund will focus on investments in growth-stage businesses with well-established technology and commercial traction in three areas:
1. Planetary health: low carbon solutions transforming mobility, food, energy, and enterprise
2. People health: enabling health outcomes and a lower-cost, accessible healthcare system
3. Financial inclusion: supporting access to finance and an equitable future of work.
“Sustainability is about both what a company does (the products and services it sells) and how a company operates,” says Lila Preston, partner and co-head of the Growth Equity platform. “A hallmark of our investment approach is that we take a systems-level view and leverage our long-term horizon and deep industry insights.”
The first two investments in Generation’s Sustainable Solutions Fund have been SOPHiA GENETICS, a company leveraging its deep expertise in life sciences and computing to democratize data-driven medicine, and Andela, the engineering-as-a-service business enabling fast-growing global enterprises to access Africa’s top software engineering talent.
The following companies are representative of Growth Equity opportunities: Asana, DocuSign, gogoro, CiBO, M-Kopa, Ocado, Optoro and Seventh Generation, amongst others. The common thread among these companies is a commitment to providing customers with superior products and services, and a dedication to promoting fully sustainable business models.
The fund builds on Generation Investment Management’s global investment platform which is based on a robust research methodology, a long-term view and differentiated insight into what sustainable organizations require to effectively accelerate market adoption.
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