Generation Investment Management, a sustainability-focused investment firm chaired by former U.S. Vice President Al Gore, announced the launch of Sustainable Solutions Fund IV, a new $1.7 billion fund aiming to invest in high-growth companies involved in shifting industries toward sustainability and responsible innovation at scale.
Lila Preston, Head of Growth Equity at Generation Investment Management, said:
“We’ve been researching the changes needed for a sustainable future, and investing in pioneering companies driving that transition for over 15 years. Our systems-level view helps us identify industries, companies and entrepreneurs that can scale sustainable solutions globally. We believe this helps us to see value where others don’t, and add value where others can’t.”
The new fund seeks to make $50 – $150 million minority-stake investments in high-growth companies, with a focus on companies driving sector-transforming net zero, waste reduction and biodiversity-enhancing solutions, those enabling better health outcomes and a lower-cost, more accessible healthcare system, and companies supporting access to finance, reducing inequality and supporting an equitable future of work.
According to Generation Investment, portfolio companies will be evaluated by factors including business and management quality, as well as their “System Positive” contribution, measuring the immediate and broader impact on people and planet factors, including the effects of the companies’ products, supply chains, and organisational cultures.
David Blood, Senior Partner of Generation Investment Management, said:
“Sustainability has been and will always be at the core of our mission, but we know we cannot achieve this mission on our own. We believe partnership is the way to succeed. When companies and entrepreneurs work with Generation, they don’t just get a single point of contact. They gain access to our team, extended network and a continuum of capital across private and public equity to help them scale and transform, and to bring system-positive change for generations to come.”