8 EU BUSINESS NEWS / Benelux Enterprise Awards 2022 , Green businesses are coming to the forefront of industry – as the pressure of a global climate crisis increases, sustainability is taking centre stage. However, many of these businesses require external investment in order to bolster their growth capital. Providing transparency, simplicity, and flexibility, Sustainable Growth Fund II SCSp, SICAV-SIF is a premiumoption for sustainable businesses across the globe. Based in Luxembourg, Sustainable Growth Fund II SCSp, SICAVSIF (SGF) is the product of Sustainable Growth Management GP S.à r. l. The fund was created to invest in businesses within the sustainability and efficiency sectors that are situated in the growth stage but lack growth capital due to a deficit in financing sources and favourable regulatory environments. In addition, the alternative private equity funds support growth companies and provide flexible financing options, which enables the fund to be open to smaller businesses. Since the establishment of the fund, SGF has remained true to its fundamental structure. For example, the first fund totals €140.2 million, and the second stands at €100 million, growing to €300 million– of course, this is extremely beneficial as SGF’s primary offering of the fund is for bolstering the growth capital of businesses. Moreover, the company’s core values – combatting climate change and enhancing the industries that operate within the sustainability sector – has similarly remained unwavering. Simply, SGF, whilst it has grown exponentially since its creation, still embodies the authenticity of a fledgling operation. As such, SGF has worked with a diverse range of companies, with recipients flocking from sustainable water businesses, energy efficiency, waste to energy, plant-based food businesses, and more. Using water as a reference point, the fund’s website suggests that in order to meet infrastructure needs globally, current water supply infrastructure investments will need to double from 2013 figures of $580 billion to over $1 trillion by 2025. Such figures truly emphasise the importance of the Sustainable Growth Fund II SCSp, SICAV-SIF. Jun22372 Additionally, SGF has identified growth capital prospects across North America and Europe, and therefore, these continents serve as the main areas of concentration. The focus is largely on lower risk investment options within later-stage businesses that possess strong management teams, proven commercialised technologies, and a clear and practical exit strategy. Further requirements are that the businesses have revenues between €10 and €100 million and near EBITDA positive with significant backlog. Of course, these elements are what have made SGF stand out within the industry. Six investments and one full realisation have been made by SGF II to date – SGF II is currently tracking higher than the predicted 20 percent Net IRR or a 2.0x MoM that was anticipated and achieved in the first fund. The fund has been established in accordance with the UN’s 17 Sustainable Development Goals and has the status of what is known as a ‘dark green fund,’ as specified by Article 9 under the Sustainable Finance Disclosure Regulations. SGF Fund 2 has already achieved an exit with 102.7% IRR and 1.92x MOI with the sale of Skipcart to 7-Eleven, and two more exits are currently underway. New investors entering SGF Fund 2 now would immediately put themselves in a positive position by taking a distribution participation, as they would be treated as day one investors. Perhaps an even greater example of what makes the company unique is the devoted team that supports its operations. Unsurprisingly, the internal structure is built around sustainability, and the entire team is aware as to how best to contribute to the cause. Furthermore, the team are focused upon providing an unmatched level of customer service, especially to investors. They endeavour to provide investors with a return on their capital to ensure good investment returns. Consequently, the capital for the sustainable market grows. They also guarantee compliance with the company’s Environmental, Social, and Governance Policy, which defines Sustainable Growth Management GP S.à r. l.’s principles and objectives with respect to responsible investment. The staff strive to comply with all applicable laws and regulations; adhere to the highest standards of business practices; conduct all business dealings with integrity, honesty, fairness, and respect; and ensure that the policy is understood by all team members. In addition, they maintain sustainable practices, which Sustainable Growth Management GP S.à r. l.’s defines as: to efficiently manage critical resources with high productive output while minimizing the negative output impacts to the environment, including health and human services, and, more specifically. The future of the Sustainable Growth Fund II SCSp, SICAV-SIF is centred around the market trends, which it is following with great attention. Through being aware of these trends, SGF hopes to obtain premium companies for the fund portfolio, that not only offer excellent returns but also support the mission of combatting climate change. After all, SGF is built upon protecting the future of the planet. On top of this, the business will continue to serve its clients and investors with passion, kindness, and enthusiasm – it is this that has and will continue to secure SGF’s success. Best Impact Investment Fund 2022
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