HESTA Strengthens Stafford Capital Sustainability Fund to $653 Million

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by KnowESG
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HESTA, the health and community services superfund, has announced an extra USD$200 million ($290.8 million) commitment to its sustainability-focused private investment programme in collaboration with Stafford Capital Partners, a London-based firm.

The transaction will give USD$450 million ($653.1 million) to HESTA's Sustainable Capital Investment Trust (HSCIT), which will be used to invest in lower-mid-market private equity businesses.

The investments must be in line with at least one of the United Nations' sustainable development goals for good health and well-being, gender equality, affordable and clean energy, climate action, clean water and sanitation, decent work, and economic growth.

After a month-long merger with Mercy Super in Brisbane, HESTA now manages over $70 billion. As of June 30, 2022, its sustainable growth option had made a return of 10.39 per cent.

Among the current investments are Convoy, a digital freight network in the US that efficiently connects shippers and carriers to cut carbon emissions, and Gogoro, a Taiwanese company that makes electric scooters, replaceable battery packs, and battery change stations.

“We continue to look for ways to invest in opportunities arising out of the need to transition to a lower carbon and more sustainable future,” HESTA CIO Sonya Sawtell-Rickson said.

“Through private equity investments like this, we’re supporting innovative, cutting-edge companies to grow and develop their businesses to deliver sustainability solutions at greater scale to the market.

"This helps us give HESTA members strong, long-term returns while also making progress toward global sustainable development goals."

“We are delighted to have further strengthened our long-term partnership with HESTA, one of the world’s leading investors in sustainable private equity,” Stafford Private Equity partner Kurt Faulhaber said.

"Our programme gives unique and cost-effective access to lower-middle market private equity businesses that meet long-term sustainability goals by focusing on co-investments and GP-led transactions."

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Source: Business News Australia