The new Dutch fund plans to invest in profitable companies in north-western Europe that contribute to sustainability but need growth capital to expand.
SevenGen Investment Partners, an investment firm based in Amsterdam, said the European Investment Fund (EIF) has become a cornerstone investor with a commitment of €40m in its new SevenGen Growth Fund.
The investment comes just three weeks after Invest International, a government-backed Dutch investment institution, committed €10m the fund.
The investments from both Invest International and the EIF will help SevenGen achieve “critical mass”, Frederik Deutman, co-founder and managing partner at SevenGen, told Impact Investor.
“More mature companies typically need bigger tickets, but you also want to have a diversified portfolio,” said Deutman. “So you need a certain minimum fund size.”
Co-founded in 2023 by a small group of bankers specialised in climate finance deals, SevenGen is targeting investment opportunities in profitable companies within the energy, mobility, built environment, and industrial decarbonisation sectors in the Benelux, Germany, and the Nordics.
Deutman said the partnership with the EIF will help his firm to speed up innovation and scale businesses, “addressing a gap often overlooked by traditional buyout models”.
Marjut Falkstedt, chief executive officer of the EIF, said the agreement with SevenGen matches its mission “to enhance sustainable economic development in Europe”.
“By strengthening ecosystems in key sectors, our objective is to play an enabling role for innovation and growth. This partnership with SevenGen underscores our shared vision of driving sustainability and promoting the adoption of transformative technologies,” said Falkstedt.
Maturing market
The impact landscape has become “more mature” since he started investing in that space, said Deutman, who has 22 years of experience in deal-making within climate impact. This includes eight years as head of the ABN Amro Sustainable Impact Fund, which manages €500m.
“Ten years ago, there was a lot of attention for startups and venture capital,” Deutman said. “We are now much more focused on the next phase of companies, companies who make a profit. We are seeing a lot of activity in that part of the market now.”
SevenGen is aiming to raise €150m for its fund, with a first close planned at around the €75m mark, according to Deutman, adding they were “mainly targeting single and multi-family offices”.
Although SevenGen has yet to invest in a portfolio company, the fund manager is currently in talks with “several potential firms”, Deutman said. Ticket sizes will vary between €5m and €30m.
