Impact Private Equity

At a glance

• Multi-thematic investment strategies intended to accelerate the environmental and societal transition and scale up the development of innovative solutions in Europe
• A search for strong impact in line with the United Nations Sustainable Development Goals (SDGs)
• A focus on companies solving key sustainable development issues with attractive yield potential
• A unique ecosystem for the management of real assets and impact investing

Private equity to accelerate positive impact on environment and society

The world is facing considerable environmental and societal challenges, such as global warming, air, water and soil pollution, the ageing of the population and technological, economic and social change. Where solutions exist, they need to be funded so that they can be rolled out on a larger scale and become reproducible economic models.

We believe that private equity investors have a vital role to play between now and 2030 in achieving the SDGs and closing the financing gap, which is estimated at USD 2,500 billion³ a year.

While energy transition infrastructure has become an asset class in itself and the venture capital segment traditionally enjoys a certain momentum, growth/acceleration capital is now a major source of impact investing opportunities, according to the management team. Their participation seems key to the upscaling of innovations and companies with virtuous and sustainable business models.

The ambition for Mirova’s impact private equity strategies is to combine financial returns with support for the transition to a sustainable economy:

• By putting “acceleration capital” to work developing sustainable companies,
• By addressing the major growth trends,
• By supporting innovative solutions and technologies

Our impact-driven private equity approach

Multi-thematic strategies structured around nine investment themes 

Mirova’s private equity strategies are focused on nine themes offering multiple opportunities in terms of performance and environmental and societal impacts. 

Five environmental investment themes: 

Four societal investment themes

Two strategies in line with the sustainable development goals

Mirova’s investment philosophy is based on aiming to finance companies and projects that contribute to the attainment of the United Nations Sustainable Development Goals (SDGs).

Environmental impact private equity strategy

Societal impact private equity strategy

Our investment criteria to maximise investment impact

What we are looking for:

• Companies whose business models directly contribute to the attainment of at least one of the SDGs targeted;
• Innovative solutions and technologies;
• Companies that apply, or wish to apply, strict ESG⁵ standards;
• Companies with tried and tested business models;
• Companies that are profitable, or are becoming so;
• Funding rounds aimed at finding acceleration capital in order to support growth.

We expect companies bringing solutions to key sustainable development issues to deliver substantial financial rewards while investments in diversified sectors should help mitigate risk.

A recognized platform of impact and private investments

• A combined know-how and experience of investing in high impact private companies and projects: leveraging the deep pool of expertise existing across the Energy Transition Infrastructure, Natural Capital, Social Impact investing and Sustainability Research teams of Mirova.
• A privileged access to deal-flow and investment opportunities through Mirova’s strong network of partners (Natixis and BPCE Group, venture capitalists, generalist and specialised financial advisors, entrepreneurs…).

¹Introduced in France in 2018 under the Pacte Law, a ‘société à mission’ company must define its "raison d'être" and one or more social, societal or environmental objectives beyond profit. The purpose, and objectives aligned with this purpose, must be set out in its Articles of Association. The Articles specify the means by which the execution of the Mission will be monitored by a Mission Committee (a corporate body distinct from the board of directors which is responsible for monitoring the implementation of the mission with at least one employee.) An independent third party then verifies the execution of the Mission, via a written opinion which is annexed to the report of the Mission Committee to shareholders and made available on the website of the company for a period of five years.

Any references to a ranking, award or label in no way guarantee the fund’s or the manager’s future performance.

²Since 2006, the B Corp movement has been promoting strong values of change throughout the world to make businesses “a force for good” and to distinguish those which reconcile profit (for profit) and collective interest (for purpose). B Corp’s goal is to certify companies that integrate social, societal and environmental objectives into their business model and operations. More details here
References to a ranking, prize or label do not anticipate the future results of the latter, or of the fund, or of the manager.
³Source: United Nations - Sustainable Development Goals Business Forum
⁴Environmental, Social and Governance
5 - Source: Mirova, data as per end March 2021
6 - Abbreviation for “clean technology” referring to companies and technologies that promote sustainable development and respect for the environment.
7 - Source: Tallano Technologies
8 - Source: Vestack

? Crédit photo Vestack : Mélaine Ferré Architecture