The fourth-largest Growth Equity fund in Generation makes investments in groups that speed up sustainable industry transitions and produce responsible developments at scale.
The release of the $1.7 billion Sustainable Solutions Fund IV was recently announced by Generation Investment Management, a sheer sustainable investment manager for around $36 billion in assets under management. The new fund keeps the company's promise to invest globally in organisations and groups advancing a sustainable future.
Generation can invest $50 to $150 million as energetic minority investors in rising businesses that are reshaping industries toward sustainability and held to account innovation at scale thanks to Sustainable Solutions Fund IV, the company's fourth and biggest Growth Equity fund. Since 2008, the company has invested more than $2 billion in growth equities, working with organisations like AlayaCare, Asana, Back Market, Benevity, Convoy, Gusto, Pivot Bio, and Toast, and many others.
"We've been exploring the reforms needed for a stable future, and investing in leading companies making that shift for over 15 years," said Lila Preston, Head of Growth Equity at Generation Investment Management. We can find businesses, sectors, and entrepreneurs who can grow sustainable strategies globally with the aid of our systems-level perspective. This, in our opinion, enables us to provide value where others cannot and recognise value where others do not.
Sustainable Solutions Fund IV will keep emphasising investments in growth-stage companies with established technology and management groups with a purpose in:
- Planetary health: carbon-free alternatives boosting biodiversity and lowering waste and emissions to revolutionise agriculture, business, transportation, and energy
- People Health: Improved health outcomes and a more affordable, comprehensive healthcare system are made possible.
- Financial inclusion: promoting financial inclusion, eliminating inequality, and promoting a fair future for the workforce
To make sure they are unmistakably accelerating the shift towards a more sustainable future, every potential portfolio firms are assessed for their 'System Positive' contribution as well as their business and management quality. This analysis evaluates a business figure's first and second-order consequences on people and the environment, taking into account the implications for its goods, supply chain, organisation characteristics, and broader social role.
The 17-person Growth Equity team at Generation, which is spread between London and San Francisco and comprises individuals from ten different countries, gives portfolio businesses a variety of viewpoints and ways of thinking. The group offers a unique collaboration approach to its portfolio, which includes:
- Deep sustainability insight: The Growth Equity group has written more than 150 deep research roadmaps that describe long-term macrotrends in the industries that are most likely to be disrupted and expand sustainably. The frameworks, which have tracked secular shifts such as the electrification of the transportation sector (2014), acceptance of alternative proteins (2015), increase of remote collaboration tools (2016), circular economy markets (2017), individualised medicine (2018), and digital remittances (2019), and many others, enable the team to set criteria for what sustainable, strong business practices look like and to record the leading businesses and business managers.
- Long-term sustainability network and advisers: Since the company's foundation 18 years ago, Generation has built a bench of top business leaders who act as both formal and informal consultants. By utilising their vast operational, personnel development, sales execution, and business scaling expertise, these advisors—many of whom also hold board positions—assist in accelerating portfolio company expansion and development.
- Convening power: Generation uses its network to carry together disparate groups of leaders, including seasoned executives, business owners, government officials, and experts for Solution Summits. These events allow participants to discuss and debate timely issues and create affinity networks for collaborative problem-solving. Green data, pay equity, gaining skills, corporate decarbonization, and the future of supply chains are just a few of the recent subjects.
- A wide range of institutional investors, many of whom have previously invested in Sustainable Solutions, make up its investment base.
- Report on Sustainability and Impact
- The Sustainability and Impact Report 2021 for Sustainable Solutions Fund III was also made public today by the Growth Equity team. Highlights are of:
- Strong disclosure: For the second year running, 100% of the corporate portfolio declared its full Scope 1, 2, and 3 emissions, like emissions intensity falling by 30% in 2021.
- Greater transparency: Generation assisted the fund's five most recent investments in measuring for the first time the full environmental and social effect at the production level.
- Gender inclusion: For the first time, the study included the non-binary gender category, including 25% of the board and 42% of portfolio firm management qualifying as female or non-binary.
Information on Generation Investment Management
Long-term investing, effective improvement research, and client alignment are all priorities of Generation Investment Management LLP. It is a 2004-founded independent, personal, owner-managed partnership with its headquarters in London and a US presence in San Francisco. It currently manages over $36 billion in assets (as of 31 March 2022).
What has Generation done in the past?
Gore co-founded Generation, which has funded $36 billion in individual and public firm funds with excellent environmental, social, and governance (ESG) reputations.
Up until now, Generation has placed a great emphasis on doing business in Europe, supporting a few of the biggest startups, such as the French firms Vestiaire Collective and Back Market, the latter of which is the greatest startup in France and is an electronics company.
ASANA, a system for job management, and Convoy, a digital freight system, are two further startups that Generation has previously invested in.
What is the newest fund going to support?
The fourth fund, as per Generation's equity growth team, is anticipated to provide assistance to companies across the continent.
According to Generation's equity growth team member Joy Tuffield, "We made a few investments in Europe throughout the course of fund one and fund two." "In fund three, we observed an increased concentration on Europe, and fund four will primarily focus on what Europe has to offer.
With the help of the new fund, Generation will be able to invest in businesses as a minority shareholder, i.e., with a stake that prevents it from exercising influence over the business. As a minor shareholder, Generation will make payments in rounds ranging from $50 million to $150 million.