Investment firm Generation Investment Management, which was co-founded by former US Vice President Al Gore, has closed a US$1 billion investment fund.
The new fund, Generation’s third and largest in its growth equity strategy, sits alongside its established public equity strategy, and enables Generation to make meaningful minority investments of $50-150 million in innovative companies with high-growth potential, the company said.
This fund builds on the firm’s 15-year commitment to investing globally in companies which it sees are accelerating the transition to a sustainable economy.
“We believe that we are at the early stages of a technology-led sustainability revolution, which has the scale of the industrial revolution, and the pace of the digital revolution,” said Al Gore, chairman and co-founder.
Lilly Wollman, Partner and Co-Head of the Growth Equity platform said, “Globally, we see the rapid adoption of sustainable solutions at an important inflection point. By taking advantage of technology cost-down curves, companies can drive sustainable transition through profitable growth and innovative business models.”
The Generation Sustainable Solutions Fund will focus on investments in growth-stage businesses with well-established technology and commercial traction in three areas:
1) Planetary health: low carbon solutions transforming mobility, food, energy, and enterprise
2) People health: enabling health outcomes and a lower-cost, accessible healthcare system
3) Financial inclusion: supporting access to finance and an equitable future of work.
“Sustainability is about both what a company does (the products and services it sells) and how a company operates,” said Lila Preston, Partner and Co-Head of the Growth Equity platform.
“A hallmark of our investment approach is that we take a systems-level view and leverage our long-term horizon and deep industry insights.”
The first two investments in Generation’s Sustainable Solutions Fund have been Sophia Genetics, a company leveraging its deep expertise in life sciences and computing to democratise data driven medicine, and Andela, the engineering-as-a-service business enabling fast growing global enterprises to access Africa’s top software engineering talent.
Other companies that Generation has backed include Asana, DocuSign, Gogoro, CiBO, M-Kopa, Ocado and Optoro. According to the business, the common thread among these companies is a commitment to providing customers with superior products and services, and a dedication to promoting fully sustainable business models.