By Lynda Kiernan

French asset manager Eiffel Investment Group has secured EUR 80 million (US$87.2 million) from the European Investment Bank (EIB) for its Eiffel Essentiel Fund, an impact fund dedicated to the long-term support of  businesses in agriculture and agri-food, health, and sustainable energy seeking “to meet the most basic needs of humanity”.

Eiffel has launched the Eiffel Essentiel Fund knowing that given global conditions, a shift will occur in production and consumption models toward greater sustainability. This fund was established with a dedication to transitions that will impact key “essential sectors” at the spearpoint of this ecological evolution. By doing this, Eiffel seeks to maximize its economic value in line with its positive social and environmental impact.

“As an impact investor, we are always trying to come up with new strategies that can generate as many positive externalities as possible. At Eiffel Essentiel we offer an innovative solution based on our proven expertise in the fields of sustainable energy, agriculture/agribusiness and healthcare,” said Fabrice Dumonteil, CEO, Eiffel Investment Group.

The 15-year fund is on pace to see a EUR 200 million (US$218 million)  first close, reaching half-way to its target of EUR 400 million (US$436 million) . With this capital, Eiffel Essentiel will back approximately 20 companies, taking minority stakes alongside majority shareholders.

As a long-term fund, it will seek out businesses that have proven business models, but which need a stable investor to offer a solid foundation from which to achieve their full potential. As such, the  fund will stay tied to its portfolio companies for a period exceeding 10 years, and will take an active role by offering the firm’s expertise in the ecosystems of its targeted sectors.

This commitment by the EIB is also supported by the  European Fund for Strategic Investments (EFSI), and aligns with the Investment Plan for Europe, also known as the Juncker Plan, that was launched after the global economic and financial crisis with three goals:

– to remove obstacles blocking investment

~ to offer visibility and technical assistance to investment projects

~ and to optimize the use of financial resources

When fully mobilized, the Juncker Plan is expected to drive investments of EUR 424 billion (US$462 billion) in 967,000 SMEs across 28 EU member states, including EUR 70.4 billion (US$77 billion) in France.

“The EU is committed to supporting sustainable investment projects such as the one presented today, guaranteeing the investment of 80 million euros from the European Investment Bank in the Eiffel Essentiel fund, the Juncker plan helps companies in the clean energy and sustainable agriculture sector, by giving them access to financing indispensable for their development.,” said Pierre Moscovici, European Commissioner for Economic and Financial Affairs, Taxation, and Customs. 

“This innovative financing, which will focus in part on the energy sector, meets one of the objective priorities of the European Investment Bank, namely the fight against climate change,” said Ambroise Fayolle, vice-president, EIB. “Our goal is also to facilitate access to financing of small and medium-sized enterprises and assisting them in their development projects for a safe and competitive ecological transition.”

 

– Lynda Kiernan is Editor with GAI Media and daily contributor to GAI News. If you would like to submit a contribution for consideration, please contact Ms. Kiernan at lkiernan@globalaginvesting.com.