The Dutch bank ABN AMRO has launched the Sustainable Impact Fund (SIF), a €425M fund for sustainable impact companies based in the Netherlands and Northwestern Europe. This fund reflects ABN AMRO’s strategic direction, which includes sustainability and a European focus as its key components.
ABN AMRO will use the funds to make private equity investments of €4M to €30M in companies with a proven business model involving sustainability and circular economy that are ready for the next phase of their growth. The fund will also make venture capital investments ranging from €500,000 to 4M in companies with a proven concept.
There are three selected themes in which the investments will be made — circular economy, energy transition and social impact. This fund comes with its own investment policy and aims to pursue a combination of social and financial returns.
Rutger van Nouhuijs of ABN AMRO’s Executive Committee explains, “Our bank finances countless sustainable initiatives, in the form of loans and credit. However, in some situations, companies need equity investments. Our new fund is able to offer this as a solution. Companies that link sustainable returns to a strong business plan can apply to ABN AMRO SIF.”
ABN AMRO Investments
ABN AMRO’s Sustainable Investment Fund made its first two venture capital investments in May, in companies such as Envision and Foodlogica. While Envision is a Dutch company that develops software for ‘smart glasses’ for the visually impaired, the Netherlands-based Foodlogica solves the challenge of last-mile transport of refrigerated food in densely populated cities with a sustainable fleet that is free of greenhouse gas emissions. Besides that, Fiberline Composites A/S also recently got private equity funding. This Danish company is developing a specific technology to increase the size of rotor blades for wind turbines. This investment was made by the Energy Transition Fund, which becomes part of ABN AMRO SIF.
The fund also invests in both private equity and venture capital, early-stage enterprises and established companies are also eligible to receive funds. Rutger van Nouhuijs adds, “What we want is to provide a solid financial basis for companies with potential that will help to accelerate the transition towards a sustainable society.”