Former US Vice President Al Gore’s Generation Investment Management has launched a $1.7bn (£1.3bn) fund to invest in private sustainability companies.
Generation’s Fund IV is its largest fund to date and will see the firm invest between $50m to $150m in “high growth” businesses.
Specifically, it is investing in sustainable and environmental, social and governance (ESG) companies. Founded in 2004, Generation Investment Management has over $36bn in assets under management.
Combined, Generation’s previous three funds have invested in excess of $2bn since 2008 into companies such as AlayaCare, Asana, Back Market, Benevity, Convoy, Gusto, Pivot Bio and Toast.
“We’ve been researching the changes needed for a sustainable future and investing in pioneering companies driving that transition for over 15 years,” said Lila Preston, head of growth equity, Generation Investment Management.
Fund IV will continue Generation’s investment into planetary health, people health and financial inclusion.
“Our systems-level view helps us identify industries, companies and entrepreneurs that can scale sustainable solutions globally,” added Preston.
Potential investment companies are evaluated on their “System Positive” contribution by measuring the effects of a business model on people and the planet.
Generation has offices in London and San Francisco. It has previously invested in the UK’s Octopus Energy, a clean energy supplier, and Ocado Group, an online grocery company.
“When companies and entrepreneurs work with Generation, they don’t just get a single point of contact. They gain access to our team, extended network and a continuum of capital across private and public equity to help them scale and transform, and to bring system-positive change for generations to come,” said David Blood, senior partner, Generation Investment Management.
Earlier this year saw fellow sustainability investor Climate VC launch to invest in startups focused on climate change and carbon emissions.
A recent report found that climate tech is the fastest-growing vertical in Europe.
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