Pictet Group’s alternative investment business has launched a new European long-term investment fund (Eltif), said a press release from the firm published on 22 April 2024. The private assets Sicav (société d’investissement à capital variable), which is , will target 20 to 25 investments in five segments: greenhouse gas reduction, sustainable consumption, pollution control, the circular economy and enabling technology. It will follow a “co-investment approach” that involves taking minority positions alongside private equity firms, noted the communiqué.
“Through this new fund, investors have access to a portfolio of rigorously selected PE co-investments. With so much innovation in private companies, and specifically those focused on addressing environmental challenges, we see significant value being created in this theme,” commented Pierre Stadler, head of thematics PE at Pictet, in an announcement.
The newly launched Pictet Private Assets Sicav–Environment Co-Investment Fund I Eltif is classified as an article 8 fund under the EU’s Sustainable Finance Disclosure Regulation (SFDR), which means the fund promotes environmental and/or social characteristics. Pictet currently operates 20 thematic strategies, including eight environment strategies.
Nicolas Thomas, thematics principal, added: “As the transition to a more sustainable world constitutes one of the greatest challenges societies have ever faced, companies providing environmental solutions could generate significant financial returns and above-average long-term growth.”
The minimum subscription is €10,000 for the “retail share class,” said the press release.
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The revised European long-term investment fund regulation, which , is meant to . It includes a broader scope of eligible assets, a broader definition of “real assets,” the possibility to set up fund-of-fund strategies or master-feeder structures, the removal of minimum investment thresholds for retail investors and more flexible portfolio compositions.
Pictet Alternative Advisors is an independent unit within the Pictet Group that manages direct and indirect investments in hedge funds, private equity and real estate assets for both private and institutional clients. As of the end of December 2023, it managed $40.5bn, with roughly $27.4bn in private equity, $7.6 bn in hedge funds, $4.8bn in real estate assets and $0.7 bn in private debt.