Robeco, a division of Dutch bank Rabobank, plans to hold a first close early next year on its Robeco Responsible Private Equity II, a fund of funds targeting €250 million ($364 million).
Rabobank will commit up to 15 percent, or €35 million, of the fund of fund’s capital, but Robeco declined to disclose other limited partners.
The fund of funds will invest in private equity funds whose investments adhere to a robust set of environmental, social and governance (ESG) principles.
“The private equity sector is joining the global trend towards responsible investing,” Ad van den Ouweland, Robeco managing partner, told PEO.
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Ad van den Ouweland |
This style of investing – also referred to as sustainable or “PPP”, short for balancing people, planet and profits – was not widespread in alternative asset classes when Robeco closed its first such fund on €200 million in 2004.
Critics at the time quite bluntly told van den Ouweland that the fund of fund’s investment thesis would hamper returns. But Robeco believed an ESG-focus would distinguish it from competitors.
“In private equity it’s important to be a visionary, to be first, not a follower,” van den Ouweland said.
He added that second fund’s overarching principle is the same as its predecessor: “the objective is to outperform mainstream private equity”.
Robeco’s first fund invested with 20 managers including Apax and 3i, which just recently launched a website detailed to chronicling its corporate social responsibility-related activities.
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