Mirova has unveiled its pan-European private equity strategy, which focuses on companies providing sustainable innovative solutions and technologies that will contribute to the environmental transition.

The firm is an affiliate of Natixis Investment Managers dedicated to sustainable investing.

The Mirova Environment Acceleration Capital fund will look to participate in the environmental transition of the economy. It will aim to invest in five main investment themes: smart cities, natural resources, agri-agro technologies, circular economy and clean energy.

It target companies will have the following profile:

• a business model directly addressing at least one of the targeted SDGs;
• mature innovative solutions and technologies;
• companies implementing or willing to implement strong ESG standards;
• companies with a proven business model;
• companies which are profitable or almost profitable;
• a transaction in which the majority of the proceeds will be used for a capital increase to accelerate the company’s growth.

The firm recognises the environmental challenges provided by global warming, alongside air, water and land pollution, non-sustainable resources exploitation, waste, food and water insecurity, deforestation and biodiversity loss. It believes that while solutions exist, they need financing to scale up and become sustainable and replicable business models.

Mirova feels that private equity investors have a critical role to play in the “decade of action” with less than 10 years to achieve the Sustainable Development Goals (SDGs) and fulfil the annual financing gap of $2.5 trillion needed. The fund aims to raise EUR 300 million from institutional and private investors.

Marc Romano, head of Private Equity Impact, joined Mirova's team in July 2021 to launch this new strategy.

His team will consist of five people with collective experience in all stages of investment, combined with long-standing involvement in the creation of impact business models

The team will benefit from Mirova’s impact investment platform which today totals up to é2.3 billion in investments in unlisted assets. The platform provides know-how in investing in unlisted high-impact companies and projects, thanks to the mobilisation of numerous resources and expertise in the Energy Transition Infrastructure, Natural Capital, Solidarity and Sustainability Research teams.

Mr Romano said: “I am delighted to have joined Mirova to carry out this new strategy, which is in every way complementary to the company's expertise. We are convinced that private equity investors have an essential role to play in facilitating the development of impact business models, by providing capital that drives the acceleration of innovative companies and the solutions they offer to environmental challenges.”

Anne-Laurence Roucher, deputy chief Executive officer of Mirova added: "Since its creation, Mirova has aimed to facilitate the transition to a sustainable economic model that meets social and environmental challenges through innovative and impactful investment solutions. It was natural for us to add to our expertise a strategy dedicated to private companies."

The fund has just made its first investment in Ombrea, a company specialising in the management and protection of crops against climatic hazards combined with the production of photovoltaic electricity.