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In brief: IFM’s decarbonisation PE fund draws Australian LPs

The Clean Energy Finance Corporation and superannuation funds HESTA and Legal Super have invested in the Australia-focused growth equity vehicle.

IFM Investors’ decarbonisation private equity fund has received an investment of A$80 million ($57 million; €50 million) from the Clean Energy Finance Corporation, a climate investor funded by the Australian government. Other investors include Australian superannuation funds Hesta and Legal Super.

The IFM Investors Private Equity Growth Partners fund’s strategy is to “accelerate emissions reduction activities” in Australian mid-market growth companies, according to an IFM statement. IFM will seek investments “based on their potential to drive a material reduction in emissions”. The firm, which did not disclose the size of the vehicle, will carbon footprint portfolio companies on acquisition and will aim to reach carbon neutrality at Scopes 1 and 2 within five years of investment.

The firm is headquartered in Melbourne and has A$179 billion in assets under management. Last month, the firm announced it had reached carbon neutrality across its private equity portfolio by buying carbon offsets.