Sustainability-focused investment manager Mirova announced the launch of the Mirova Environment Acceleration Capital fund, a new pan-European private equity fund aiming to invest in companies providing sustainable innovative solutions and technologies contributing to the environmental transition.

The new fund will target five main investment themes, including smart cities, natural resources, agri-agro technologies, circular economy and clean energy. According to Mirova, the fund will invest in companies that directly address at least one of the targeted SDGs, with proven business models and mature innovative solutions and technologies. Companies must also implement strong ESG standards and be profitable or almost profitable. Investments will focus on transactions in which the majority of the proceeds will be used to accelerate company growth.

Mirova stated that it aims to raise €300 million from institutional and private investors for the fund, its first private equity impact fund.

Anne-Laurence Roucher, Deputy Chief Executive Officer of Mirova said:

“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 a strategy dedicated to private companies.”

The fund will be led by Marc Romano, Mirova’s Head of Private Equity Impact, and supported by a team of five people with collective experience in all stages of investment. Romano joined Mirova in July, after eight years at financial advisory company Rothschild & Co, most recently as General Partner and Managing Director within the firm’s private equity arm Five Arrows Managers.

Romano said:

“I am delighted to have joined Mirova to carry out this new strategy, 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.”