Environmental commodity and corporate climate solutions provider STX Group announced the launch of its first investment fund, aimed at catalyzing investments in corporate compliance markets, in partnership with alternative investment fund manager Funds Avenue S.A.
According to STX Group and Vertis, the new fund is being launched in response to growing demand for investments that meet ESG criteria, in addition to capturing price appreciation in the the fast growing, but illiquid global carbon compliance markets. The fund is expected to raise $250 million.
Carbon compliance markets effectively put a price on greenhouse gas (GHG) emissions and help fund efforts to reduce emissions globally. They allow businesses or countries to receive permits or certifications for their own emissions by investing in emissions reductions efforts elsewhere, including alternative fuels, renewable energy and carbon sequestration.
Gauthier Bily, CEO at Vertis said:
“Carbon markets today are in a unique position. While ETS are a proven GHG emissions reduction mechanism, they are far from reaching their full potential. Through the Vertis Global Carbon Fund, we aim to encourage capital markets to fully engage with the compliance carbon markets and accelerate the green transition.”
The new Vertis Global Carbon Fund marks STX Group’s entry to the asset management business with its first fund aimed at raising capital for the global compliance carbon market. It will leverage on the expertise of emissions trading firm Vertis Environmental Finance, which Amsterdam-based STX acquired in December of 2021.
Bart Wesselink, Chief Financial and Risk Officer at STX Group, said:
“We are excited for the opportunity to expand our presence in the value chain of environmental commodities by entering the asset management space. We have vast experience in trading environmental commodities and are looking forward to working with Funds Avenue S.A. and Vertis by sharing our knowledge and working together towards a successful investment fund.”