AXA Investment Managers Alts has an impact strategy with $1.2 billion in assets under management. New Private Markets met with the firm’s head of impact investing Jonathan Dean for breakfast this week, where he shared some insight into the programme. Here are three key takeaways:
Are you planning a sixth fund?
“There may be some news coming out relatively soon on what’s next. Our focus as a group is on two areas: climate and health. We’ve just launched a fund on health, so our focus next will be something on the other side of the equation.
“What we do next will take us much closer to the $2 billion mark.”
Will you link carried interest to impact performance?
“For the new [healthcare] fund that we’ve just launched, the carry programme hasn’t been set up, but it’s an active conversation internally with the structuring parties as to how that can be done. The fund hasn’t reached its final close yet, so the programme won’t be in place until then, but that’s one of the conversations that we’re having.
“It comes from the investors. We’re talking to our investors about what they want, what criteria do they judge success on, whether it’s a condition for them. Until we have all that information, we won’t make the final call on whether or how we integrate [impact-linked carry]. But it’s certainly a topic that is discussed.”
How big is your team?
“We’ve grown from one-and-a-half people for Fund I to 20 people now.”
AXA IM Alt’s impact funds:
The impact strategy has assets currently valued at $1.2 billion across five funds:
- Impact Fund I: 2014-vintage. Raised €150 million; fund-of-funds; focused on financial inclusion, healthcare and education; fully invested.
- Impact Fund II: 2018-vintage. Raised $180 million; focused on environmental and social impact; fully invested.
- Climate and Biodiversity Fund: 2020-vintage; raised $350 million; nearly fully invested.
- Prime Impact Fund: 2021-vintage; focused on financial inclusion and healthcare; nearly fully invested.
- Global Health Fund: 2022-vintage; still raising; targeting $500 million.