As part of the growing demand for sustainable investments across the asset management industry, a new ‘green’ impact fund has been launched to invest in organic and sustainable consumer businesses across Europe.

As part of the growing demand for sustainable investments across the asset management industry, a new ‘green’ impact fund has been launched to invest in organic and sustainable consumer businesses across Europe.

The Triodos Organic Growth Fund is a long-term evergreen fund, set to provide equity to leading organic food companies and sustainable consumer businesses across Europe, said Netherlands-based Triodos Investment Management in a statement. 

Upon launch, the fund starts with €25.3 million ($34.26 million), provided by private and institutional impact investors, and aims to grow to a further €150 million. 

Triodos Investment Management said in a statement that with the launch, it “is pioneering a new model for impact investing: mission aligned private equity, with a long-term focus”. 

“This is crucial for the further expansion of the fast growing sector for organic food and sustainable consumer products in Europe. The frontrunners in this sector, now mature companies, are hampered in their growth by the lack of long term capital that is aligned with their companies' missions and values,” the firm said when explaining the background for the launch.

Furthering growth of organic and sustainable companies

Consequently, the fund will build up a diversified private equity portfolio in later-stage organic and sustainable consumer businesses across Europe, with a focus on food and beverages, natural textiles and personal care. 

“Triodos Organic Growth Fund will invest in values-driven and profitable businesses with a solid and growing market position. These are privately held companies seeking capital for further growth that will not compromise on their core values and social or environmental objectives,” added managing director Marilou van Golstein Brouwers.

The fund is open to qualified and professional investors across Europe. It is a sub-fund of the Luxemburg-listed Triodos SICAV II investment fund and is traded on a quarterly basis, at net asset value.

Triodos Investment Management is a specialist in developing and managing sustainable investment funds, which focus on investments in renewable energy, sustainable real estate, culture, organic farming, microfinance in developing countries and investments in listed companies that meet strict sustainability criteria (SRI funds). At the end of June 2013 the firm had €2.4 billion in combined assets under management.