Eurazeo has launched the Planetary Boundaries fund, a thematic impact buyout fund which applies the principles of planetary boundaries.

The Eurazeo Planetary Boundaries Fund will have a target size of at least EUR 750 million with a portion of the carried interest being linked to achieving impact key performance indicators.

The concept of planetary boundaries was developed by the Stockholm Resilience Centre in 2009. It details “the safe operating space for humanity within Earth’s ecological limits”. The boundaries represent nine processes which guarantee the Earth system’s resilience and stability and include climate change, biodiversity integrity, land use change and pollution. Eurazeo says this framework will be used as a compass for impact investing decisions.

The fund will focus on two primary themes – boosting a regenerative and circular economy, and championing solutions for transition and adaptation. It will invest in small to mid-market companies, primarily in Europe, across sectors such as agriculture and food, waste and packaging, water management, low-carbon energy, and transport services.

The fund will be managed by partners Erwann Le Ligné and Wilfried Piskula.

Sophie Flak, Member of Eurazeo Executive Board, said, “For several years, the concept of Planetary Boundaries has been a central concern of mine. The ongoing impact revolution presents numerous opportunities for forward-thinking investors. To achieve the strongest returns while delivering meaningful impact, we need a rigorous analytical approach that combines scientific impact criteria with our unique value creation and buyout expertise. Our EPBF approach allows us not only to tackle on a large-scale issues that reach beyond climate change, but by merging science and business it empowers our investors to address the most pressing challenges of the transition to a circular and regenerative economy.”

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