Arcano Partners launches its second impact fund: AIPEF II
14 OCT, 2023
Arcano Asset Management, the asset management arm of Arcano Partners, today announced the launch of Arcano Impact Private Equity Fund II (AIPEF II), with a fundraising target of €300 million. This fund continues the strategic focus of its predecessor fund AIPEF I, which raised investment commitments of €280 million from Spanish and international investors, including Italian, German, and Nordic investors.
The vehicle is designed to generate positive and measurable impact through investments in funds and companies that provide cost-effective solutions to many of the social and environmental challenges we face.
According to Arcano, in the wake of megatrends such as climate change, resource scarcity, and demographic shifts, there is a proliferation of profitable companies seeking to respond to the growing demand for commercial business models that provide solutions to these challenges. By offering increasingly in-demand and less discretionary products and services, and operating in a favorable regulatory environment, these companies are better positioned to weather different economic cycles. Within the social and environmental challenges that are being more actively addressed, AIPEF II focuses on three investment themes, including decarbonization, health and wellbeing, and quality education.
Pioneers in responsible investment
AIPEF II is the second fund of the same name launched by the firm following the strong performance of its predecessor AIPEF I, which was launched in 2020 as one of the first global private equity funds focused on profitable impact investing. This first fund, which has completed close to 30 transactions through the primary market, as well as co-investments and secondaries, has experienced a very positive evolution. Despite its short life and operation in a challenging macroeconomic environment, it has already had some sales of companies with very attractive returns, confirming that it is possible to invest for a positive impact while generating attractive financial returns.
With the launch of AIPEF II, Arcano Partners strengthened its commitment to responsible investment, which is ingrained in its DNA as an essential component of its strategy and culture. In September 2020, the firm was the first Spanish fund manager to adhere to the Operating Principles for Impact Management (OPIM), an initiative that seeks to establish a framework for investors to manage impact at all stages of the investment process. Similarly, Arcano Partners has also received the highest rating from the United Nations Principles for Responsible Investment (PRI): 5 stars. At the same time, Arcano, through its impact fund, continues to support initiatives to promote sustainability and impact investment, in this case through collaboration with the IESE business school, through the Arcano-IESE Impact Investing Competition.
"With the launch of this new fund we strengthen our leadership position in profitable impact investing and consolidate our position as one of the leading private equity managers in Europe".
Ricardo Miró-Quesada, Partner in charge of Private Equity and impact at Arcano.
"We remain highly committed to measuring and disclosing the impact generated by our funds' underlying companies. To achieve this, we have developed a proprietary analysis model and have already published two impact reports monitoring the evolution of the impact metrics of the more than 250 companies in the AIPEF I portfolio".
Marta Hervás, Head of Impact Private Equity at Arcano.
