Generation Launches $1.7 Billion Sustainable Solutions Fund IV to Invest in Growth-Stage Companies Leading a Sustainable Future

LONDON & SAN FRANCISCO–(BUSINESS WIRE)–Generation Investment Management, a pure sustainable investment manager with over $36 billion in assets under management, today announced the launch of its $1.7 billion Sustainable Solutions Fund IV. The new fund continues the company’s commitment to invest globally in companies and teams serving a sustainable future.

Sustainable Solutions Fund IV is Generation’s fourth and largest growth equity fund, enabling Generation to invest $50-150 million as active minority investors in high-growth companies that are moving industries toward sustainability and responsible innovation at scale. The company’s previous Growth Equity funds have deployed over $2 billion since 2008, partnering with companies such as AlayaCare, Asana, Back Market, Benevity, Convoy, Gusto, Pivot Bio and Toast, among others.

Lila Preston, Head of Growth Equities at Generation Investment Management, said: “We seek out the changes needed for a sustainable future and invest in pioneering companies that have been driving this transition for over 15 years. Our systems-level view helps us identify industries, companies and entrepreneurs who can deploy sustainable solutions globally. We believe it helps us see value where others don’t and add value where others can’t. »

Investment objective

Sustainable Solutions Fund IV will continue to focus on investing in growth-stage companies with proven technology and mission-driven management teams in:

  1. Planetary Health: zero-carbon solutions transforming mobility, agriculture, energy and business by reducing waste and emissions and improving biodiversity
  2. People’s health: enabling better health outcomes and a more affordable and accessible health system
  3. Financial inclusion: supporting access to finance, reducing inequalities and supporting a fair future of work

All potential portfolio companies are assessed not only for their business and management quality, but also for their “positive to the system” contribution, to ensure that they are clearly leading the transition to a more sustainable future. This analysis measures the first- and second-order effects of a business model on people and the planet, including implications for its products, supply chain, organizational culture and broader role. in the society.

David Blood, Senior Partner at Generation Investment Management, said: “Sustainability has been and always will be at the heart of our mission, but we know we cannot accomplish this mission alone. We believe that partnership is the key to success. When businesses and entrepreneurs work with Generation, they don’t just have one point of contact. They have access to our team, our extensive network, and a continuum of capital across private and public capital to help them evolve and transform, and bring positive change to the system for generations to come.

Differentiated approach

Based in London and San Francisco, Generation’s Growth Equity team of 17 people representing 10 nationalities provides portfolio companies with a diversity of thinking and perspective. The team offers a differentiated partnership approach to its portfolio, including:

  • In-depth knowledge of sustainability: The Growth Equity team has authored over 150 in-depth research roadmaps that outline macro and long-term industry trends in the sectors most likely to experience disruption and sustainable growth. Roadmaps, which have tracked secular changes including the electrification of the transportation industry (2014), the adoption of alternative proteins (2015), the rise of remote collaboration tools (2016), circular economy markets (2017), personalized medicine (2018) and digital remittances (2019), among others, allow the team to establish criteria for what sustainable business models look like and high quality and track key companies and leadership teams to develop relationships with.
  • Extensive network and advisors: Since the company was founded 18 years ago, Generation has developed a deep and global sustainability network, cultivating a group of senior industry executives who serve as formal and informal advisors. These advisors, who often also serve on the board of directors, help accelerate the growth and development of portfolio companies, drawing on extensive experience in operations, people development, sales execution and scaling up businesses in a sustainable growth phase.
  • Convocation power: Generation leverages its network to bring together diverse groups of leaders including experienced executives, entrepreneurs, policy makers and academics for Solutions Summits to discuss and debate important hot topics and build affinity networks to solve problems together. Recent topics have included green data, pay equity, upskilling/reskilling, corporate decarbonization, and the future of the supply chain, among others.

Sustainable Solutions Fund IV has a diverse global institutional investor base, including many returning LPs.

Sustainability and Impact Report

Also today, the Growth Equity team released its 2021 Sustainability and Impact Report for Sustainable Solutions Fund III. Highlights include:

  • Strong Disclosure: 100% of the private portfolio reported all of its scope 1, 2 and 3 emissions for the second consecutive year, with like-for-like emissions intensity decreasing by 30% in 2021.
  • Deeper Transparency: Generation has helped its five most recent investments in the fund measure comprehensive environmental and social impact at the product level for the first time.
  • Gender inclusion: The report captured the non-binary gender category for the first time, with 42% of portfolio company management and 25% of board members identifying as female or non-binary.

About Generation Investment Management

Generation Investment Management LLP is dedicated to long-term investing, integrated sustainability research and client alignment. It is an independent, private, owner-managed partnership established in 2004 and headquartered in London, with a US presence in San Francisco, with over $36 billion in assets under management (as of March 31, 2022).

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Important Note

This document is neither intended as marketing material nor as a financial promotion; rather, it is only intended to provide general information about the closing of Generation IM Sustainable Solutions Fund IV, ILP (the “Fund”). When it was opened for subscription, the Fund was only accessible to a limited number of well-informed investors, in accordance with the rules applicable to private placements. No public offering of interests in the Fund has been made in any jurisdiction. The Fund is now closed and no further issuance of interests in the Fund will be made. Therefore, this document is for informational purposes only.

Generation Investment Management LLP (“Generation UK”) is authorized and regulated by the UK Financial Conduct Authority and reports to the US Securities and Exchange Commission (“SEC”) as an exempt reporting adviser. Generation UK is the parent entity of Generation Investment Management US LLP (“Generation US”), an SEC-registered investment adviser. Registration as an investment adviser with the SEC does not imply a certain level of skill or training. Generation UK and Generation US may only transact business in any state, country or province if they or their affiliates (if applicable) are first registered, or excluded or exempt from registration, under applicable laws of that state, country or province.

Although the information contained herein is believed to be reliable, Generation does not warrant that it is accurate or complete and should not be relied upon as such. Generation is not responsible for modifying, correcting or updating the information or opinions contained in this document, and accepts no responsibility for any loss resulting from the information contained in this document. All opinions expressed are current opinions only. Listed companies have been selected on the basis of objective, non-performance based criteria solely for the purpose of illustrating the investment philosophy of the Growth Equity team. There is no guarantee that these businesses have been or will be profitable. They should not be considered investment or research recommendations. Nothing herein should be construed to imply that past results are indicative of future performance. This document should not be construed as advice or a recommendation. It is not intended to be a formal investment search for any company. The fact that Generation has invested should not be relied upon to review any future investment in such companies, the circumstances of which may have changed significantly. This material is not intended to induce directly or indirectly any person to enter into any investment management agreement or to exercise any right conferred by an investment to acquire, transfer, subscribe or convert an investment in such a way as to constitute an advertisement of investment.