Generation Investment Management LLP Scaling its Growth Equity Platform with its third growth fund, adding $1 billion in new capital
Sustainable investing has been Generation’s sole focus since its founding 15 years ago. It isn’t just part of what we do, it’s the backbone of everything we do. It is in our DNA. And it informs how we look at all companies — across the $22 billion of assets Generation manages within its public and private investment strategies.
Today, we’re excited to announce the next step in our continued drive towards sustainable capitalism: the close of a new $1 billion Sustainable Solutions Fund — the third and largest in our Growth Equity strategy. This new fund will enable Generation to make meaningful investments ($50–150 million) in companies with high-growth potential that it considers to be accelerating the transition to a sustainable economy.
The Growth Equity Strategy: Taking a Systems Level View
The new Sustainable Solutions Fund’s investment process will leverage our deep research and insight into sustainability with the aim of finding the best companies to partner with for the long-term. We believe the best businesses stand for something significant and will help catalyze broader industry change.
The Growth Equity strategy will focus on investments in companies with well-established technology and commercial traction in three areas:
- Planetary health: low carbon solutions transforming mobility, food, energy, and enterprise
- People health: enabling health outcomes and a lower-cost, accessible healthcare system
- Financial inclusion: supporting access to finance and an equitable future of work.
We believe that sustainability is about both what a company does (the products and services it sells) and how a company operates. A hallmark of Generation is taking a systems level view, and leveraging our long-term horizon and deep industry insights. The synergy and our collaboration with Generation’s public equity team provide us with more comprehensive perspectives on which sustainable solutions businesses are likely to succeed in the long-term, as well as a wider focus on broader capital market dynamics.
The following companies are representative of Growth Equity opportunities: Asana, DocuSign, gogoro, CiBO, M-Kopa, Ocado, Optoro and Seventh Generation, amongst others. What ties these companies together is that they are all dedicated to sustainable business models and are committed to providing customers with superior products and services driving a low-carbon, prosperous, equitable, healthy and fair society.
Our First Investments: SOPHiA GENETICS and Andela
The Sustainable Solutions Fund’s initial investments have been SOPHiA GENETICS and Andela, companies that represent ambitious new models. SOPHiA GENETICS is a company that has the potential to improve health outcomes and is leveraging its deep expertise in life sciences and computing to democratise data driven medicine. Partnering with them was a natural choice, as we believe that leveraging genetic sequencing and advanced digital analysis will enable a more sustainable healthcare system.
Our investment in Andela resulted from our deep research into the future of work. Andela is an engineering-as-a-service business enabling fast growing global enterprises to access Africa’s top software engineering talent. In doing so, Andela is helping alleviate the global undersupply of talent in this area. Andela has created a model that trains software engineers in Africa to help companies across the world to build better products. Not only do we believe Andela is a transformative model, but we also greatly admire them for their mission and culture.
Taking Sustainability Mainstream: It Takes a Team
The Growth Equity strategy has a global and diverse institutional investor base, a number of whom have been partners with Generation over the past decade or more. With a presence in London and San Francisco, the 14-strong Growth Equity team offers portfolio companies a rich diversity of thinking and experience. The team represents eight nationalities and nearly sixty per cent of the team is female.
As Generation’s Chairman and Co-Founder, Al Gore, says, “We believe that we are at the early stages of a technology-led sustainability revolution, which has the scale of the industrial revolution, and the pace of the digital revolution.”
Some might say sustainability is the biggest investment opportunity of our generation.
About Generation
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 office in San Francisco. Generation Investment Management LLP is authorised and regulated in the United Kingdom by the Financial Conduct Authority. www.generationim.com
Important Note
This document is neither intended as marketing material nor as a financial promotion; rather it is intended solely to provide general background information on the close of Generation IM Sustainable Solutions Fund III, L.P. (the “Fund”). When open for subscription, the Fund was only available to to a limited number of sophisticated investors, in accordance with applicable private placement rules. No public offer of interests in the Fund was made in any jurisdiction. The Fund is now closed and no further issuance of interests in the Fund will be made. Consequently, this document is for information purposes only.
Generation Investment Management LLP (“Generation UK”), is authorised and regulated by the Financial Conduct Authority of the United Kingdom and reports to the U.S. Securities and Exchange Commission (“SEC”) as an exempt reporting advisor. Generation UK is the parent entity of Generation Investment Management US LLP (“Generation US”), an investment adviser registered with the SEC under the U.S. 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 (as applicable) first are registered, or excluded or exempted from registration, under applicable laws of that state or province.
While the information contained in this document is believed reliable, Generation makes no representation that it is accurate or complete and it should not be relied upon as such. Generation is not responsible for amending, correcting, or updating any information or opinions contained herein, and it accepts no liability for loss arising from the information contained in this material. Any opinions expressed are present opinions only. Companies listed have been selected on objective non-performance-based criteria solely for the purpose of illustrating the Growth Equity team’s investment philosophy. There is no warranty such companies have been or will be profitable. They must not be viewed as investment recommendations or research. Nothing in this document should be interpreted to imply that past results are an indication of future performance. This document should not be construed as the giving of advice or the making of a recommendation. It is not intended to be formal investment research in respect of any company. No reliance should be placed on the fact Generation invested in considering any future investment in such companies, the circumstances of which may have materially changed. This document is not calculated to lead directly or indirectly to any person entering into any investment management agreement or any exercise of any rights conferred by an investment to acquire, dispose of, underwrite or convert an investment so as to constitute an investment advertisement.
