Sustainable investing-focused superannuation and investment fund manager Australian Ethical Investment announced the launch of the Australian Ethical Investment Growth Opportunities Fund, designed to provide wholesale investors with access to a diversified portfolio of private market investments focused on long-term growth and measurable impact.
The new fund is being launched with a A$500 million (USD$353 million) seed investment from Australian Ethical, alongside a cornerstone commitment up to A$125 million (USD$88 million) from Australia’s government-owned specialist climate investor Clean Energy Finance Corporation (CEFC).
CEFC Executive Director Heechung Sung said:
“By backing a new institutional vehicle with CEFC investments, we are helping to establish a scalable platform for climate-focused assets, crowding in capital and expanding the reach of sustainable finance to a broader audience to accelerate Australia’s decarbonisation.”
According to Australian Ethical, the new open-ended fund is designed to deliver both market rate returns and measurable impact, with long-term exposure to unlisted real assets. Key themes targeted by the fund include decarbonization, digitalization, urbanization, circular economy and changing demographics. Initial investments include recycling infrastructure, renewable energy and battery storage, renewable data centers, and aged care facilities.
The firm added that every investment is aligned to Australian Ethical’s Ethical Charter, which guides how capital is allocated to create positive outcomes while avoiding unnecessary harm to people, planet and animals.
The fund also includes an Impact Advisory Forum separate from the investment team, tasked with reviewing and monitoring impact reporting across the portfolio. It aims to deliver returns of 11%–13% per annum (after fees and expenses) over seven-year periods, while offering quarterly liquidity, the firm said.
Australian Ethical Investment Head of Private Markets Adam Roberts said:
“Australian Ethical’s Growth Opportunities Fund fund gives wholesale investors access to a wide range of impactful private investments, providing immediate diversification without having to commit or tie up large amounts of capital in a single private equity or venture capital investment.”