Oslo-based Verdane, an investment firm that partners with tech-enabled and sustainable European businesses, has closed its latest sustainable-focused fund, Idun II, at €700M hard cap.
This is more than double the size of its previous Idun I fund, which closed at €300M.
Aimed at decarbonising the economy, the Idun funds are designed to support European tech-enabled companies that align with Verdane’s dual investment focus on digitalisation and sustainability.
The Idun II fund, classified as an “Article 9” fund under the EU’s Sustainable Finance Disclosure Regulation (SFDR), will invest in areas such as energy transition and resource efficiency.
Investment criteria and sustainability targets
Idun II targets investments between €20M and €100M per business, with a stringent sustainability criterion: investments must achieve a minimum carbon avoidance of 5,000 tonnes of CO2 per €1M invested.
Verdane employs its proprietary ‘2040 test’ to ensure that all investments are primed for long-term success in a sustainable economy. These requirements are outlined in Verdane’s 2023 sustainability report.
Bjarne Kveim Lie, Founder and Managing Partner of Verdane, says, “With Idun II, we seek to demonstrate that it is possible to generate world-class returns for investors while making a meaningful contribution to the decarbonisation of our economy.”
“As structural growth investors, we are convinced that the quest to decarbonise is a generational megatrend. Our goal is to be the preferred growth partner to the companies best positioned to take advantage of that trend, and to help them reach their full potential.”
Investors supporting Idun II
Idun II secured commitments from key investors, including Norway’s state climate investment fund, Nysnø Climate Investments, Banque de Luxembourg, the European Investment Fund, MN, a provider of fiduciary management services for Dutch industry pension funds, and Finnish capital investments company Tesi and Carbon Equity.
Other investors include global private and public pension funds, leading university endowments, foundations, insurance companies and family offices.
The fund was fully subscribed within five months, with international investors from 13 countries, including 29 per cent from the US.
Frida Einarson, Partner, Investor Relations at Verdane, says, “The mobilisation of private capital at scale in 2024 to help create a more sustainable economy is a positive development for both our industry and the planet.”
“We are grateful to welcome existing and new investors into Idun II and look forward to delivering both strong returns and positive climate impact, which they can quantify and track, for their programmes.”
Growing portfolio and support
Verdane has backed 42 sustainable businesses since 2003. Its existing Idun I investments include NORNORM, which offers a subscription model for sustainable office furniture, and Scanbio, an upcycling leader producing fish protein concentrates and oils.
Verdane claims to have invested more than €600M over the past year in 16 European companies dedicated to digitalisation and decarbonisation.
With a team of over 150 professionals across key European markets, Verdane offers its portfolio companies access to a comprehensive support platform. This includes a proprietary value-creation engine, extensive sector expertise, and a benchmarking engine drawing on over 100 million data points and an ecosystem of over 600 CXOs.
Additionally, Verdane’s in-house Elevate team—a group of 35 operational experts—provides targeted support in areas such as strategy, technology, finance, and sustainability, helping companies optimise their growth potential in a competitive market.
Bjarne Kveim Lie, adds, “Our decarbonisation team at Verdane is now one of the largest in Europe, with 13 dedicated investment professionals. They are supported by an in-house operations team of 35 strong, and benefit from the entire organisation’s deep networks and experience helping scale sustainable European growth companies over the last two decades.”
“This enables us to not only dive deep into the structural growth trend of decarbonisation but also to support our companies with on-the-ground presence across core Northern European markets to support companies in their growth. We remain humbled by the continued trust placed in us by our investors and will do our utmost to deliver against their high expectations.”
Brief about Verdane
Verdane partners with European businesses focused on digitalisation and decarbonisation. With over €8B in assets under management, Verdane has supported more than 400 companies since its founding in 2003.
As a certified B Corporation and UN PRI signatory, Verdane upholds high sustainability standards. The firm invests only in businesses that pass its “2040 test”, ensuring alignment with a sustainable economy.
Through the Verdane Foundation, it also promotes global sustainability and local inclusion initiatives. Verdane offers flexible investment options, taking either minority or majority stakes in individual companies or portfolios.
Earlier this year, in February 2024, Verdane closed its €1.1B Edda III mid-market growth fund. The firm’s third fund family, Freya, with a 20-year track record, continues investing through its Freya XI fund, targeting both individual companies and portfolio investments with a flexible approach.
Verdane has backed 42 companies with a focus on measurable environmental impact. Its Idun fund family, aimed at reducing carbon emissions, includes investments like NORNORM, which offers a greenhouse gas-reducing furniture subscription service, and Scanbio, a producer of fish-based protein and oils that promotes waste upcycling.
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