Adamantem Capital has launched fundraising for a new fund that will invest only in businesses targeting reduction of carbon emissions.
The Sydney private equity firm is seeking to raise $350 million for the Environmental Opportunities Fund which will be led by managing directors Rajiv Viswanathan and Natasha Morris, who oversees responsible and impact investing across the firm.
The Environmental Opportunities Fund will invest in Australian and New Zealand businesses in the areas of clean energy and electrification, natural capital and climate change abatement, and the circular economy. Investments will be made in companies with enterprise values of $50 million to $100 million with equity components ranging up to $50 million.
The fund will target conventional private equity returns of 20% internal rate of return (IRR) and hold periods of three to five years.
Adamantem launched fundraising for its second flagship fund in 2020 under a mandate that included working toward carbon neutrality.
The firm says its long-term goal is to deliver outstanding financial returns on investments that positively contribute to social and environmental impacts and all its investment decisions take account of sustainability and ESG risks.
The $800 million Adamantem Fund II has invested in carbon farming advisory business Climate Friendly, the former Spotless Laundries, now Linen Services Australia, natural hair car business Nak Hair and CardioCo, formerly the cardiology practices network of GenesisCare (APE&VCJ, Aug 2022).
Image: Adamantem has invested in carbon farming advisory business Carbon Friendly.