Structuring and managing an Impact Investing Fund
Today’s industrial activities are mainly responsible for our global warming and climate change. The average temperature of the planet has risen by 1.1°C since the beginning of the industrial era; the concentration of greenhouse gases has reached a level not seen for 2 million years; the abundant use of chemical inputs and the production and use of plastic contaminates water, and there are many more…
In 2017, a family was looking for a way to guarantee positive impact for their investments, in response to the various challenges our society is currently facing.
Telos Impact is mandated by the family to provide its expertise, and creates an impact investment fund focused on 3 pillars of climate change : sustainable food, circular economy and water; with specific investment objectives and criteria.
Telos Impact has implemented an investment strategy defined according to the themes and investment criteria (budget, geographical focus, type and size of companies, etc.) chosen. More specifically, Telos Impact created the fund and assisted the family in determining its long-term objectives and in structuring its governance.
Telos Impact now dedicates a team of consultants for the management of the impact fund’s portfolio. The team handles the entire investment process, including sourcing, analysis, negotiations, investment management with presence at the Board of Directors, and management of an expert committee.
Over the past 4 years, the team has been able to source several hundred impact companies and has made 7 investments in funds and companies (start-ups).
French company Gaïago is one concrete example of this achievement. In order to meet our client’s ambitions to invest in sustainable food solutions for value chain, Telos Impact brought into play its expertise, its network and its large dealflow in the specific field of regenerative agriculture. This competence enabled us to quickly identify a great investment opportunity with Gaïago.
Thanks to its holistic and precise understanding of the subject, Telos Impact was able to create a relationship of trust with the company’s management, which contributed to its client being the lead investor in the fundraising. Telos Impact also managed all legal negotiations.
As a result, and as a representative of the lead investor, Telos Impact is part of the company’s Board and participates in the decision-making process with its skills in terms of strategic development and private equity. Furthermore, as an impact fund, Telos Impact encourages the company to measure its impact meticulously. Finally, Telos Impact uses its network to connect Gaïago with other companies in the same sector that can be useful for their development.