ODDO targets individual investors with climate ELTIF

ODDO BHF Asset Management plans to raise €100 million for a programme of fund investments, secondaries and co-investments. ODDO BHF Commit for Tomorrow is the firm’s first fund structured as an ELTIF (European long-term investment fund).

ELTIFs were introduced in the EU to allow both individuals and institutions to invest in unlisted assets – primarily infrastructure and private companies. They have become a popular fund structure among asset managers wanting to access individual investors’ capital, with firms like BlackRock and Mirova launching ELTIFs for funds with a sustainability angle. Outside of the EU, the UK has a comparable structure: the LTAF, or long-term asset fund; the first of these to launch was a climate strategy from Schroders Capital.

ODDO’s ELTIF will back funds and companies involved in three themes: energy efficiency and decarbonisation; renewables energies and transition infrastructure; and circular economy and resource management. It has a target allocation of 60 percent for fund investments (primaries and secondaries) with the remaining 40 percent for co-investments. It will invest predominantly in European (60 percent) and North American opportunities (30 percent), according to a fund document shared with New Private Markets.

Other fund facts:

• The expected average return each year is 8.3 percent IRR, the firm told New Private Markets;
• The fundraising period runs until December 2025;
• A conventional 10-year fund with two possible one-year extensions;
• Classified as Article 8 under the EU SFDR rules;
• Management fee ranges from 0.8-2.2 percent;
• Hurdle rate is 1.3x net to investors “based on nominal value”;
• Carried interest is 15 percent with full catch-up.