Pictet Group’s alternative investment business, Pictet Alternative Advisors, has launched a fund designed to offer investors greater access to environmental technology investments across private markets.
The Pictet Private Assets SICAV – Environment Co-Investment Fund I ELTIF is set to target between 20 and 25 investments, originated through Pictet’s network of more than 90 active relationships with private equity managers, spanning from established generalists to sector specialists.
The SFDR Article 8-listed fund will implement the Planetary Boundaries scientific framework into its environmental investment approach, targeting investment opportunities across five fast-growing segments: greenhouse gas reduction; sustainable consumer; pollution control; the circular economy; and enabling technology. It will follow a co-investment approach, taking minority positions alongside high-quality PE firms globally.
The fund will be led by Pierre Stadler (pictured left), Pictet’s head of thematics PE, and Nicolas Thomas (pictured right), Pictet’s thematics principal.
Stadler commented: “Through this new fund, investors have access to a portfolio of rigorously selected PE co-investments. With so much innovation in private companies, and specifically those focused on addressing environmental challenges, we see significant value being created in this theme. Our experienced team is highly selective when choosing where to invest, focusing on businesses with a proven ability to achieve consistent growth and cashflow.”
According to Pictet, private capital is crucial to avoid putting humanity “well outside of the safe operating space”, given that Earth has now transgressed six of the nine planetary boundaries. Therefore, Pictet is aiming to catalyse investments in the technologies and solutions to avoid, mitigate or reverse the damage being done.
Furthermore, while the current penetration rate of environmental technologies is still low, it is expected to grow exponentially and shows attractive investment prospects with a projected market size of $12trn by 2030.
Thomas added: “Pictet has a strong history of thematic investing and we are excited to offer clients our highest conviction opportunities within the environmental theme. As the transition to a more sustainable world constitutes one of the greatest challenges societies have ever faced, companies providing environmental solutions could generate significant financial returns and above-average long-term growth.”
