Swiss bank UBS has raised more than $93m for Sustainable Solutions fund III, the newly closed growth equity fund from sustainable investment firm Generation Investment Management.
The fund aims to generate long-term returns through $50-150m investments in high growth, sustainable companies, defined as providing goods and services consistent with a low-carbon, prosperous, equitable, healthy and safe society.
With commitments in excess of $1bn, the fund will invest in companies which make a positive net contribution to society and support growth ventures with a clear mandate to accelerate the transition to a sustainable economy.
The partnership extends UBS's leading position in sustainable and impact investing solutions, which include: launching the first 100% sustainable cross-asset portfolio for private clients, which now has $5bn under management; pledging to raise at least $5bn in SDG-related impact investments over five years; creating the UBS Oncology Impact fund, the largest healthcare impact investment to date; and partnering with the World Bank Group to offer development bank bond investments to wealth management clients, as well as serving on the steering committee, and being a founding signatory, of the World Bank IFC's new Operating Principles for Impact Management.
Al Gore, co-founder and chairman of Generation Investment Management, said: "We believe that we are at the early stages of a technology-led sustainability revolution which has the scale of the industrial revolution, and the pace of the digital revolution."
"Generation is a pure play sustainable investment manager. We seek businesses that provide goods and services consistent with a low-carbon, prosperous, equitable, healthy and fair society," said David Blood, co-founder and senior partner at Generation Investment Management. "Sustainable investing is all we do, and all we will ever do. With a continuum of capital, and the collaboration between our public and private investment teams, we can be true long-term equity partners to the very best companies big and small."
Mark Haefele, chief investment officer at UBS Global Wealth Management, said: "We share Generation Investment Management's view that longer-term trends towards sustainability present investors with opportunities to both support the UN's Sustainable Development Goals, and fulfil their financial objectives."