Superannuation fund HESTA has committed additional funds to a targeted private equity investment program managed in partnership with Stafford Capital Partners.
HESTA had added US$200 million ($290 million) to the program, bringing the total program size to US$450 million.
The HESTA Sustainable Capital Investment Trust (HSCIT) would invest in lower-mid-market private equity businesses around the world which worked towards one or more UN Sustainable Development Goals like clean energy, climate action, clean water, economic growth, and gender equality.
“Through private equity investments like this we’re supporting innovative, cutting-edge companies grow and develop their businesses to deliver sustainability solutions at greater scale to the market,” said Sonya Sawtell-Rickson, chief investment officer at HESTA.
“This is helping us to provide strong, long-term returns for HESTA members while also having a positive impact on progressing global sustainable development goals.”
The super fund, geared to people in community services and health, held $70 billion in assets and has over 970,000 members.
It made the allocation from HESTA Sustainable Growth, an investment option that invests in companies that meet specific ESG standards, and excludes investments in sectors like weapons, tobacco, and gambling.
As of June 2022, the sustainable growth option delivered an average annual return of 10.39%.
Stafford Capital Partners was an independent private markets investment and advisory firm with US$7.5 billion in assets under management and advice.
Kurt Faulhaber, partner at Stafford Private Equity, was delighted by the partnership with “one of the world’s leading investors in sustainable private equity”.
“By focusing on co-investments and GP-led transactions, our program offers unique and cost-efficient access to lower-mid-market private equity businesses that meet long-term sustainability goals.”
