Mirova Unveils New Plans for Impact Private Equity

Mirova is pursuing its approach as a responsible impact investor through its new pan-European private equity approach which aims to invest in companies providing sustainable innovative solutions and technologies contributing to the environmental transition.

The team also benefits from the support of the responsible investment research team, which has been analysing the sectors and actors of the environmental transition for almost 10 years.

Mirova already has a reputation as a significant player in unlisted impact financing, through investment strategies in energy transition infrastructure, social and solidarity companies, and natural capital project financing.

The move comes on the eve of the first Anniversary of the formalisation of Mirova’s corporate mission, which aims to demonstrate that asset management companies should aspire to a profound transformation of the economy towards a fairer and more sustainable model.

Providing Capital to Accelerate the Environmental Transition
The world is faced with urgent, global and interconnected environmental challenges: global warming, air, water and land pollution, non-sustainable resources exploitation, waste, food and water insecurity, deforestation, biodiversity loss.... Solutions exist, but they need financing to scale up and become sustainable and replicable business models.

Along with public markets investors, Mirova believes that private equity investors have a critical role to play in the “decade of action” with less than 10 years to achieve the Sustainable Development Goals (SDGs) and fulfil the annual financing gap of $2.5 trillion¹ needed.

As green infrastructure has developed into a mainstream asset class and the venture capital (VC) benefits from a dynamic and flourishing ecosystem, the next generation of impact investments opportunities are expected to be in the “Acceleration capital” stage. Capital injection is critical to scale up innovations and businesses with virtuous, environmentally-positive business models.

With the firm’s impact private equity approach, the ambition is to participate in the environmental transition of the economy while pursuing the objective of a financial return by:

• deploying acceleration capital for scaling up sustainable businesses;
• addressing megatrends that provide tailwinds for growth;
• supporting innovative solutions and technologies.

The team aims to invest in five main investment themes: smart cities, natural resources, agri-agro technologies, circular economy and clean energy.

The target companies will have the following profile:

• a business model directly addressing at least one of the targeted SDGs;
• mature innovative solutions and technologies;
• companies implementing or willing to implement strong ESG² standards;
• companies with a proven business model;
• companies which are profitable or almost profitable;
• a transaction in which the majority of the proceeds will be used for a capital increase to accelerate the company’s growth.

Marc Romano, Head of Private Equity Impact at Mirova, says: “I am delighted to have joined Mirova to carry out this new approach, which is in every way complementary to the company's expertise. We are convinced that private equity investors have an essential role to play in facilitating the development of impact business models, by providing capital that drives the acceleration of innovative companies and the solutions they offer to environmental challenges.”

Anne-Laurence Roucher, Deputy Chief Executive Officer of Mirova adds: "Since its creation, Mirova has aimed to facilitate the transition to a sustainable economic model that meets social and environmental challenges through innovative and impactful investment solutions. It was natural for us to add to our expertise an approach dedicated to private companies."

For further reading:

• Mirova Awarded B Corp Status and Becomes ‘Mission-Led Company’ for its Corporate Responsibility Approach
• Mirova Among the ImpactAssets 50 for its Natural Capital Activities