Javascript is required
 

500 million euros to create an impact: the Sustainable Impact Fund

Banking for better

30/06/2023 • 4 minute read

At ABN AMRO, our ambition is to be a better bank for future generations. The ABN AMRO Sustainable Impact Fund (SIF) is one of the tools we are using to accelerate this transition to a sustainable future. The fund, worth a spectacular 500 million euros, invests exclusively in three areas: the circular economy, the energy transition and social impact. We asked Pauline de Valk, Investment Manager of the ABN AMRO Sustainable Impact Fund, to tell us a little more.

‘Sustainable Impact Fund’ sounds very broad. What exactly is the fund and what does it invest in?

‘The Sustainable Impact Fund is a wholly owned subsidiary of ABN AMRO with an investment policy that’s in line with the bank’s climate strategy and that combines social and financial returns. This means that the bank invests the 500 million euros on its balance sheet in a selection of companies that are making a positive contribution to the environment and/or to the community. These venture capital and private equity investments of between 2 and 30 million euros are made in companies with a proven business model that are ready for the next growth phase.
Pauline de Valk

Pauline de Valk, Investment Manager of the ABN AMRO Sustainable Impact Fund

How do you define a ‘positive’ impact? What criteria must businesses meet?

‘The impact of some businesses is very clear. For example, we’ve invested in Ideematec, a German business active in the solar energy sector. But the contribution can also be positive by comparison with the competition in the market. That’s the case with Soaply, for instance, the Dutch business that develops environmentally friendly detergents and cleaning products. Or Fairphone, which develops modular smartphones made of sustainable materials. A smartphone isn’t sustainable, of course: it requires raw materials and energy. But these smartphones last much longer, and this dramatically reduces the impact on the environment.’ 

‘If a business wants our backing, we first conduct a thorough investigation. We look at whether the business actually has a positive impact and how that impact can be further optimised. Obviously, you need to be sure that the claims that the business makes are accurate, but we also conduct a commercial analysis. This definitely isn’t a charitable project: we choose healthy businesses whose growth we can accelerate. And as a shareholder, we do all we can to give them optimal support in order to create even more impact and even higher returns.’

What can a business expect from the Sustainable Impact Fund?

‘As a shareholder, as well as contributing capital ABN AMRO likes to get involved in order to give the business the best possible support with achieving its growth plans. As a bank, we naturally have a very extensive network and considerable in-house expertise, so we like to share ideas with those running the business and put them in touch with interesting contacts. In this way, we can really help the business to move forward commercially. And if the business grows, we get more returns from it, which we can then invest once more in a sustainable way. It’s a win-win situation.’

What distinguishes SIF from other (sustainable) funds?

‘One of the main differences from other funds is that SIF has ABN AMRO bank behind it, with plenty of expertise and knowledge and a network that we’re happy to use to help the businesses further. In addition, we’re fully funded by the bank itself, which means that we’re not tied to fixed investment terms, so we can support businesses for longer. If the business goes through a rough patch, we can cover that difficult period more easily, giving it much more breathing room.’

What is your biggest success story?

‘There are lots of success stories, as we can really make a big difference to all the businesses we invest in. One nice project that perhaps stands out for me is OrangeGas (OG). In December 2018, we became a shareholder in this business, which focuses on clean fuels for transport, and in particular on bio-CNG, EV charging and green hydrogen. Before it started working with us, OG already had several fuel stations in the Netherlands, but as a result of our investment it has also been able to establish its position abroad. It’s now the market leader in the Netherlands and Germany and is also doing very well in Sweden. Within the next five years, it aims to be among the major players in the Western European market.’

“In AA SIF we’ve found a shareholder that has confidence in the business and that gives us not just the necessary resources but also a long-term vision so that we can realise our ambitions.”

Marcel Borger

Co-founder and CEO of OrgangeGas

Who is eligible for SIF support? How does this work?

‘In theory, any business in Northwest Europe that is making a positive impact on the environment or society is eligible. Although the Sustainable Impact Fund’s headquarters are in Amsterdam, it’s by no means a purely Dutch fund. If you think your business meets the criteria and you need a certain amount of money to carry out a business plan, contact us. We’ll then see if we believe in the business plan. If so, we’ll set up a number of studies in order to comprehensively identify the position of the business. If the outcome is positive, we’ll get to work and investigate how we can best support the business.’

 

Want to know more about the Sustainable Impact Fund? Contact sif@abnamro-privateequity.nl or go to Sustainable Impact Fund - ABN AMRO.

Tags

Article
Banking for better
News
Sustainability
Social engagement
Social impact
Entrepreneur & Enterprise
Sustainable business

Related articles

ABN AMRO Ondernemersdossiers

Heeft u een familiebedrijf? Bent u op zoek naar relevante inzichten rond uw vermogen als ondernemer? Heeft uw onderneming nood aan bijkomende informatie rond belangrijke transitiethema’s? Onze experten zien regelmatig dezelfde thema’s terugkeren. Wij behandelen de meest prangende vragen en thema’s in onze ondernemersdossiers en rapporten.

Ontdek onze Ondernemersdossiers

Discover our unique approach for entrepreneurs' personal and professional challenges

Our range of services for entrepreneurs and their companies combines the power and knowledge of both Corporate Banking and Private Banking. This allows us to serve your business and private needs in a better and faster way as a specialised team. 

Thanks to our extensive knowledge of key transition topics such as energy, digitalisation and mobility, we can make sure your company and assets are protected and can grow in the rapidly changing world of tomorrow.

Get in contactMore information