The fund attracted investment from a big investor in Switzerland as well as some of the biggest pension funds in the Netherlands.
Mentha, a Dutch private equity firm, announced the first close of its Benelux impact buyout fund after it raised €153m. The close exceeded an initial €140m target set during the fund launch in May.
The fund, which Mentha said is the first buyout vehicle in the Benelux that is purely focused on investments in companies working on achieving climate and environmental goals, will invest in themes such as resource efficiency, sustainable production and process technology and energy transition.
The Mentha Impact Fund I was oversubscribed following demand from both private and institutional investors. These include an unnamed “leading global investor” from Switzerland, as well as APG, which acted on behalf of its clients ABP, the biggest pension fund in the Netherlands, and bpfBOUW, the pension fund for Dutch construction workers, Mentha said.
“The new fund is a natural step in our development to increasingly focus on improving the sustainability results of our companies with a sharp eye on people and the planet, but also with sound financial results,” said Edo Pfennings, co-founder of Mentha and partner for the firm’s impact business.
First allocation
Mentha’s impact team uses private equity to speed up the growth of ‘green’ companies – those focused on environmentally friendly practices and sustainability – while at the same time supporting companies with a ‘brown’ business model – traditionally reliant on fossil fuels or less sustainable practices – in their transition to become more sustainable.
Pfennings said he wanted to use his firm’s broad experience and knowledge “to help accelerate and expand companies that have a positive impact on climate and the environment.”
The fund has made its first investment in Thermatras, a Netherlands-based company that produces and installs blankets on technical equipment used in the shipping, industrial and utility sectors to reduce heat loss.
SMEs
Impact Investor reported on the first close of Mentha’s impact buyout fund in June, with Pfennings saying it would invest into 10 to 12 small to medium-sized enterprises in the Benelux region and Denmark, with revenues between €5m and €100m.
The majority of investments would be buyouts, although Pfennings said at the time his team would also look to provide growth capital for companies in which it could hold a significant minority stake.
