London-based manager Stafford Capital is encouraging institutional investors to consider co-investment programmes as a way to meet their portfolio net-zero goals (and offering up its services as manager, according to a statement).

“If you have a very clear set of objectives you’re trying to achieve, it is much harder to deliver them through blind pools. The transparency that comes with co-investments is the answer,” Stafford CEO Angus Whiteley told New Private Markets.

The firm has identified three categories of investee company that it will target as part of a co-investment programme: “carbon transitioners” (companies with commitments to make measurable carbon reductions); “decarbonisation enablers” (companies providing climate solutions); and “low-carbon businesses” (companies with a track record of maintaining a low-carbon footprint).

“Many investors have either formal net zero targets, or some equivalent, as they look to have their response to the challenges in the world,” Whitely said. “These investors are looking at ways to work with managers to generate the returns they seek – their fiduciary responsibility – while also meeting pressures to decarbonise. This strategy enables them to achieve both goals.”

Stafford already managers private equity fund investment and co-investment programmes through both blind pool funds and separate managed accounts. It also managers private markets products spanning various other strategies, including secondaries, timberland and private credit. The firm launched a carbon offset fund in December 2022 with a $1 billion fundraising target. It reached a $242 million first close last year.

The firm has also been increasing its sustainability expertise. Stafford recruited Marta Jankovic as head of sustainability last summer, shortly after Valentina Abbott and Joe Carrabes joined the client solutions team to boost fundraising efforts for sustainable strategies.