Building on the success of its inaugural fund, Purpose Capital has launched the Purpose Capital Impact Fund 2.
The fund will bring innovative financing solutions to help accelerate NZ’s energy transition – solutions which Purpose Capital has developed extensive expertise in, providing access to an immediate pipeline of more than $100+ million of investment opportunities.
“New Zealand is facing both a major challenge and an opportunity. The challenge is to meet the growing demand for electricity. The opportunity is to meet this demand with renewable electricity generation – which supports our energy security and resilience, whilst delivering the cheapest and most climate friendly generation available.”
Commercial and industrial sectors are contributing to this increase in energy demand, as they electrify their heat generation and power supply. While electrifying coal and gas-powered processes increases our overall electricity demand, it’s not only the right thing to do, it’s often the most cost-effective solution. This means that these investments are not just good for the planet, they also make sound financial sense.
Purpose Capital Impact Fund 2 will draw upon the expertise built in the first Fund’s investments in renewable energy and energy transition projects, and scale that impact by bringing in co-investment and partnering with other market participants.
In preparation for the expansion, the Purpose Capital team has boosted its governance capacity, restructured its Investment Committee (IC) and added an advisory group.
The new Purpose Capital advisory group includes Dr. Rod Carr, Rob Campbell and Rhiannon McKinnon.
Waruna Karunaratne and Paul Winton have joined Steve Howse on the IC, while Katie Beith and Blake Richardson have moved across to the GP Board, to join David Plummer and David McCallum.
“As reported in the fourth annual State of Net Zero Investment report there is a persistent gap between climate risk awareness and capital allocation. Only 17% of NZ investors surveyed currently invest in climate solutions such as renewable energy or low-carbon infrastructure. PCIF 2 is an opportunity for institutional investors and others to invest in actual solutions.”
In a related move, Purpose Capital has also established Sustainable Finance Limited, in a joint venture with Quadrent Limited, a 100% NZ owned B Corp, specialising in asset financing and lease accounting. The establishment of Sustainable Finance Limited will help Purpose facilitate access to both debt and equity solutions, for renewable and decarbonisation projects.
A short overview is available below. For more information, please email [email protected] or complete the short form here.
This fund is intended for persons and organisations who meet the wholesale investor criteria under Schedule 1 of the Financial Markets Conduct Act 2013. This is not an offer to invest. Information Memorandum available upon request.
Purpose Capital are Impact Investors who drive positive environmental and social change in throughout New Zealand. New Zealand’s largest private impact investment fund, Purpose Capital is founded on the principle that we can effect change through well-run commercial investments that deliver impact as well as financial return.
Through demonstrating the effectiveness of our approach, Purpose Capital aims to increase impact investments from asset and fund managers as well as private and philanthropic wealth. By leading investment opportunities, we provide confidence to other investors to invest alongside us in impactful companies and projects.