Kilara Capital’s climate-focussed private equity fund has reached its first close securing $34 million. The fund targets growth companies with measurable impact, with performance fees linked to climate outcomes.

The investment team has applied a unique model of accountability that sees performance fees calculated based on key climate and carbon impacts. 

“The team wanted to change the paradigm of how fund managers track, manage and treat climate outcomes. We wanted to set the new benchmark for private equity in Australia by placing climate and impact outcomes alongside financial returns, where they ought to be”. Says Investment Director, Emma Jenkin.

The fund has already deployed $18 million across 4 companies, with the portfolio having mitigated over 20kg of CO2e for every dollar of revenue generated over the past 12 months.

Investee companies so far are: Wattwatchers, Grounded Packaging, Tasman Environmental Markets and JET Charge. 

“With the recent volatility and contraction in the market Kilara is ideally placed. We have a portfolio of strong revenue generating businesses, $16 million of undeployed capital and prevailing tail winds when it comes to climate-smart investing”. Says Managing Partner Ben Krasnostein.

Four key themes are driving asset allocations; Future food, environmental markets, energy transformation and circular economy. Fund allocations look for opportunities to directly address climate change, while also contributing to systemic outcomes in production and consumption. 

“With the recent volatility and contraction in the market Kilara is ideally placed. We have a portfolio of strong revenue generating businesses, $16 million of undeployed capital and prevailing tail winds when it comes to climate-smart investing”. Says Ben Krasnostein.

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