Environmental Opportunities Fund targets mid-market companies to support net zero transition
Tackling decarbonisation with electrification, abatement and circular economy solutions
The Adamantem Capital Environmental Opportunities Fund is harnessing private equity to invest in mid-market companies that provide products and services to support Australia’s transition to renewable energy, the adoption of electric vehicles and energy efficiency.
By focusing on mid-market companies in these three sectors – clean energy and electrification, natural capital and abatement, as well as the circular economy – we are confident Adamantem’s disciplined approach to sustainability will see the Environmental Opportunities Fund make positive impact to company growth as well as national emissions.Rory LonerganCIO Infrastructure and Alternatives Investment, CEFC
The CEFC is a cornerstone investor in the Adamantem Capital Environmental Opportunities Fund, committing up to $35 million in equity.
The Fund is targeting $350 million and has also attracted investments from Minderoo Foundation, NGS Super, Manulife and a number of family offices.
The CEFC investment continues our relationship with Adamantem. We had previously committed $80 million as a cornerstone investor to the Adamantem Capital Fund II, which is aiming to drive emissions reduction targets across a diverse range of private equity owned mid-market companies.
The Environmental Opportunities Fund invests in operating businesses – with an enterprise value of between $50 million and $100 million – that enable or provide the services necessary to transition to a net zero economy. The Fund investment strategy combines Adamantem core private equity investment capabilities with its deep experience in responsible investing and environmental sustainability.
The power of private equity to drive decarbonisation
Australia’s net zero transition offers enormous economic opportunities to businesses which can commercialise the innovative technologies and solutions that will be central to our low emissions economy of the future.
Australia’s $41.7 billion private capital sector has the potential to play a key investment role in supporting our national emissions ambitions.
A focus on mid-market enterprises
The Adamantem Capital Environmental Opportunities Fund is aiming to invest in operating businesses with an enterprise value of between $50 million and $100 million that enable the transition to a net zero economy.
The Fund is expected to apply Adamantem Capital investment disciplines as well as a market-leading impact assessment framework. Fund Investors will work with an Environmental Opportunities Fund Impact Advisory Board, which will monitor and report on the impact generated by investee companies.
The Fund will focus on mid-market companies that provide products and services to support the transformation of Australia’s National Electricity Market. It will also support the uptake of electric vehicles, electrification and energy efficiency in buildings and industry.
First investment in food packaging
The first fund investment is with PAC Trading, an environmentally friendly food packaging business. PAC Trading is seeking to use Fund capital to support its next stage of growth. The company is seeking to transform the food service industry as it transitions away from single-use plastics and packaging to more environmentally sustainable outcomes.