CEFC Cornerstone investor in Adamantem’s Environmental Opportunities Fund
The CEFC has joined with leading investors to support a new private equity fund focused on lifting the sustainability of mid-market companies, with a $35 million cornerstone investment in the new Adamantem Capital Environmental Opportunities Fund. The Fund has already made its first investment in PAC Trading, an environmentally friendly food packaging business. With the Fund achieving a first close of $150 million, CEFC CIO Rory Lonergan said the CEFC investment aimed to bring the power of Australia’s $41.7 billion private capital sector to the achievement of national emissions ambitions.
Adamantem media release
28 June 2023
Adamantem announces first close of its Environmental Opportunities Fund, with CEFC as cornerstone investor, and first deal with PAC Trading
- Environmental Opportunities Fund (EoF) first close of $150 million, targeting $350 million.
- CEFC cornerstone investment of up to $35 million, alongside investments from Minderoo Foundation, NGS Super, Manulife and a number of family offices.
- First deal announced with PAC Trading, an environmentally friendly food packaging business.
Australian investment manager Adamantem Capital (Adamantem) has announced the first close of its Environment Opportunities Fund (E0F) at $150 million. Adamantem is also pleased to continue its investment relationship with the Clean Energy Finance Corporation (CEFC) making a cornerstone investment in the Fund.
The EOF also received support from other leading global and domestic investment partners in ESG initiatives, including Minderoo Foundation, NGS Super and Manulife as well as a number of family offices.
Off the back of the close, Adamantem has also finalised the fund’s first investment in PAC Trading, an Australian company that provides innovative and sustainable packaging solutions.
Adamantem Managing Director Rajiv Viswanathan said the firm was delighted to have attracted a strong calibre of investors who are also driven to support businesses that enable the transition to a net zero economy.
“The CEFC, Minderoo Foundation, NGS Super and Manulife are all motivated to invest in operating companies that are exposed to the three key environmental segments: clean energy and electrification, natural capital and abatement, and the circular economy.”
“We are also excited to announce the Fund’s first investment into PAC Trading. As the ban of single use plastics comes into effect across Australia, the company will be at the centre of providing sustainable options to environmentally conscious customers.”
PAC Trading CEO Cynthia Xin said she and her team were excited to be partnering with Adamantem.
“Adamantem’s expertise driving impact across its investments makes it the ideal partner to help PAC in its next stage of growth. With Adamantem’s support, PAC Trading will be well-positioned to transform the food service industry as it transitions away from single-use plastics and packaging to more environmentally sustainable alternatives.”
The EOF applies Adamantem’s strong investment disciplines, as well as a market-leading impact assessment framework which assesses environmental impact across a number of dimensions. The CEFC and other investors will work with a newly established EoF Impact Advisory Board, which will monitor and report on the impact generated by the EoF’s investee companies. The fund will also seek to offer co-investment opportunities.
CEFC CIO Infrastructure and Alternatives Investment, Rory Lonergan said the CEFC investment aimed to bring the power of Australia’s $41.7 billion private capital sector to the achievement of national emissions ambitions.
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. 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 LonerganChief Investment Officer – Alternatives, CEFC
The CEFC has previously invested in the Adamantem $700 million plus Fund II, which also has a mid-market sustainability focus, particularly in the consumer staples, healthcare and business-to-business services sectors.
Ben Squires, NGS Super Chief Investments Officer said the fund is committed to responsible investing, with the EoF providing an opportunity to diversify its members portfolio and benefit from the private market.
“Investing in Adamantem’s Environmental Opportunities Fund brings us another step closer to achieving our 2030 carbon neutral investment portfolio target whilst also providing valuable returns for our members,” Mr Squires said.
Bruce Tomlinson, Investment Director of Minderoo Foundation said it was attracted to businesses and funds that are building sustainable models to tackle longstanding social and environmental challenges.
“We want to empower businesses that are tackling some of the most challenging and persistent issues facing Australia. Adamantem’s fund allows us to invest in local business with unique solutions to help Australia achieve its net zero goals, and deliver great investment returns,” Mr Tomlinson said.
The EoF 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 EOF’s investment strategy combines Adamantem’s core private equity investment capabilities with its deep experience in responsible investing and environmental sustainability.
Media release, 2023