Swedish private equity and real estate asset investor on Wednesday EQT announced the launch of a new potentially huge impact investment fund. EQT Future Fund, which will aim to raise € 4 billion (around $ 4.7 billion), will be a long-term impact-focused fund. The fund will target investments in mature companies with the potential for “market impact potential” and where transformational change requires a longer ownership time frame. Part of the deferred interest of EQT Future Fund will be linked to the achievement of key performance indicators of impact at the portfolio level, including the reduction of greenhouse gas emissions.
According to an EQT announcement, the Future Fund will invest in accordance with three key objectives; Planet, people and prosperity. Additionally, each investment in the EQT Future Fund portfolio will have a clear impact thesis, with an impact acceleration plan to achieve specific asset and portfolio level KPIs. More precisely, these KPIs are the reduction of GHG emissions according to the scientific objectives, the improvement of the well-being of the employees as evidenced by the top quartile of the industry. eNPS (Net Promoter Score) and greater gender diversity, as evidenced by progress towards 50/50 parity among the richest 20% of employees in each portfolio company.
Up to 20% of the total deferred interest of EQT Future Fund will be linked to the achievement of the aforementioned KPIs.
A high-level mission committee will provide the Fund with strategic direction and impact-oriented advice, co-chaired by the former Unilever CEO, United Nations Ambassador for Sustainability and co-founder of the social enterprise initiative TO IMAGINE, Paul polman, in the same way AB investor President and ABB and Ericsson Vice-president Jacob Wallenberg.
“There is a huge opportunity to invest in companies that give more than they take and I have a firm belief that success will come to those who focus on solving the world’s problems,” Polman said in a comment on the launch of the fund. “I share this mindset with EQT and therefore am delighted to join the board of directors of EQT’s future mission to support a strategy clearly oriented towards investing in companies that are or have the potential to change. industries for the better. “
“EQT Future is an important strategic decision for EQT as a company,” added the CEO and Managing Partner of EQT. Christian Sinding. “With our scientific goals and the impact-focused investment thesis of EQT Future, we are raising the bar for EQT and all of our investment strategies. By combining EQT Future with our enterprise-wide approach to embed a positive impact in every investment, we have the best possible basis for seizing the most exciting opportunity and responsibility of our time – to support companies that can accelerate transformational change for the benefit of the environment and society at large.
Last week, EQT became the first private market investment firm to formalize scientific objectives for its portfolios via the Science-Based Targets Initiative (SBTi), a partnership between nonprofit impact disclosure CDP, the United Nations Global Compact, World Resources Institute (WRI) and World Wide Fund for Nature (WWF). By 2030, the company has committed to reducing its own direct emissions by 50%, its indirect emissions from business travel by 30%, ensuring that 100% of the companies in its portfolio will have their own validated SBTs. by 2030 and reduce indirect emissions to their real value. 55 percent real estate funds per square meter of floor space.