Australia's Adamantem hits first close on environment fund

EOF launched last September with a target of AUD 350m. Australia’s Clean Energy Finance Corporation (CEFC), a government agency with A$10 billion in assets, has committed up to AUD 35m to the first close as a cornerstone investor. Other LPs include Minderoo Foundation, NGS Super, Manulife, and multiple unnamed family offices.

CEFC is also an anchor investor in Adamantem’s second flagship buyout fund, which closed on AUD 794.8m in June 2021. Its commitment came with requirements that portfolio companies take steps to eliminate or offset their emissions within a decade.

The seeds of the EOF strategy are also visible in the activities of the private equity firm’s buyout funds. It acquired a majority stake in Climate Friendly, one of Australia’s largest carbon farming project services providers, in early 2021. Last May, Mitsui & Co bought a 33% stake in the business, facilitating a partial exit for Adamantem.

EOF invests in operating businesses – with enterprise values of AUD 50m to AUD 100m – that enable or provide the services necessary to transition to a net zero economy. PAC Trading, a producer of environmentally friendly food packaging, is regarded as a key player in the transition of Australia’s food services industry from single-use plastics and packaging to more sustainable alternatives.

Commenting on the first close, Rajiv Viswanathan, a managing director at Adamantem, expressed satisfaction at having attracted high-calibre LPs committed to supporting the move to a net zero economy.

“The CEFC, Minderoo Foundation, NGS Super and Manulife are all motivated to invest in operating companies that are exposed to the three key environmental segments: clean energy and electrification, natural capital and abatement, and the circular economy,” he said.

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• Topics
• Australasia
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• Buyout
• Australia
• Adamantem Capital
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• Clean Energy Finance Corporation