Dragonfly Media Release
Australian sustainable fund manager Dragonfly Enviro Capital has launched capital raising for its $50m Impact Growth Fund, with $7.5m already secured and invested in high-growth companies.
The growth fund will identify and invest in profitable solutions to challenges affecting people, climate and the environment, with target returns of 20% pa net of fees for the first eight years after deployment.
Launched by CEO Adam Tucker and renowned sustainable investment specialist, Nigel Sharp, the fund gives investors access to an asset class that is set to grow significantly in the coming years.
Current projections have responsible investment forecasted to be around 30% of total investment per year, and impact investments’ share of responsible investment is expected to rise from 6% to 11% by 2025 (Morgan Stanley). This coincides with Betashares recently projecting that the Australian ethical and responsible exchange-traded fund sector will grow fivefold to $50bn by late 2028.
The fund’s current investments include Pacific Bio, Downforce, Our Trace, the Water and Carbon Group and Red Earth Energy Storage, which are touted as the next generation of sustainable innovations set to put Australia on a clearer path to net zero.
With over 35+ years of experience specialising in measured, sustainable impact and profitability, Dragonfly Enviro Capital has a strong track record with 13 early investments (not part of this fund) delivering a current weighted average IRR of 51%.
The fund aims to take advantage of investment into businesses commercialising new and revamped industrial solutions that act to decarbonise, reduce waste, use active circular economics and enhance natural resource usage, and has already attracted significant interest from several high-net-worth individuals and family trust managers.
According to the Responsible Investment Association, over $1.5 trillion of assets in Australia are now being managed in line with responsible investing principles. Paul smith –
Adam Tucker, CEO of Dragonfly Enviro Capital, said:
“Through this fund, we want to continue to prove that investors do not need to pick between positive impact and strong financial returns. The transition toward a more sustainable society presents a historic investment opportunity, and capital has a critical role to play and forward-thinking investors who get in early stand to make huge gains.
“The facts are that the transition to a net-zero emissions world opens up an investment opportunity that totals almost $200 trillion by 2050, we do not believe Australian investors should miss out on this opportunity. It is our vision to inspire 10% of the world’s capital to invest in positive impact investments by delivering market-leading returns.
“Each and every asset within this fund presents a significant and innovative disruption to their respective markets, creating positive, profitable and proven results. These are companies that have already proven markets, that are growing, that provide solutions to the challenges the environment and people are facing – and just as importantly that are profitable or have a clear path to profitability.”
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