Munich based Golding Capital Partners has launched its first institutional impact fund of funds.
The fund, the Golding Impact 2021, will follow a global private equity impact strategy based on environmental and social sustainability targets that are ambitious, quantifiable and integrated.
It will focus on companies in Europe, North America and emerging markets with transformative business models in the areas of green solutions (35%), sustainable agricultural technology (35%), and financial services and other sustainable sectors (30%).
Golding plans to raise €300 million for the fund and targets an internal rate of return of 12% to 14%.
“Impact investing is not just the future; it already offers great opportunities for institutional investors today,” said Dr Andreas Nilsson, managing director and head of impact at Golding.
“We will be putting together a hand-picked portfolio of funds for our investors, made up of investments in companies with environmental or social characteristics as well as a record of sustainable growth. These investments must meet agreed impact targets from day one.”
The fund will build a broadly diversified portfolio across sectors, regions and development stages with planned investments in around 15 target funds, plus a smaller allocation for selected co-investments.
It will operate largely across three sectors: green solutions; food and ag-tech solutions; and financial inclusion solutions.