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Golding targets up to 14% returns with debut impact FOF

'Green solutions', sustainable agriculture and financial inclusion are the target areas for its first impact fund offering.

Private markets firm Golding Capital Partners has come to market with its debut impact fund of funds, the firm announced on Tuesday. We knew the firm was plotting a fund launch, having hired the founders of a private equity impact boutique, Sonanz, earlier this year to lead the effort. Here is what’s in today’s announcement:

Target size: €300 million.

Target returns: a net IRR of 12 to 14 percent.

Geographic focus: Europe, North America (50 percent) and emerging markets (50 percent).

Strategy: Commitments to around 15 funds, with “a smaller allocation for selected co-investments”.

Impact themes: green solutions (35 percent), sustainable agricultural technology (35 percent), and financial services and other sustainable sectors (30 percent).

EU SFDR status: “As we put great emphasis on ensuring that the reporting from portfolio companies outside Europe complies 100 percent with SDFR standards, we are starting conservatively under Article 8+ and consider ourselves to be ‘light green plus’,” said managing partner Hubertus Theile-Ochel. “Together with our target funds we will work actively to standardise data collection and regular reporting in order to achieve Article 9 status.”

The vehicle: “Golding Impact 2021” is structured as a Luxembourg SCS SICAV-FIAR and is open to institutional investors making a minimum commitment of €5 million.

Investors: These are expected to be primarily German and European institutions, such as pension funds, foundations, family offices, church institutions and insurance companies.

Frameworks: Golding signed up to UN PRI in 2013 will “soon” sign up to the Operating Principles of Impact Management, said founder and managing partner Jeremy Golding.

What’s next: “[The fund] is just one step of the many that we still have ahead of us as a company on our way to becoming a sustainable asset manager. At the corporate level we have committed to becoming carbon neutral by 2025, for example. So, this will certainly not be our only impact investing product,” said Golding.