Australian Ethical’s new growth fund receives Govt backing

Binaya Dahal

Journalist

8 April 2026

Australian Ethical has expanded its private markets offering, with its new Australian Ethical Growth Opportunities Fund intended to provide wholesale investors access to institutional-grade ethical private market investments.

The open-ended fund targets scalable, diversified exposure to unlisted real assets, aiming to deliver market-rate returns alongside measurable social and environmental impact.

The fund has secured backing from the Australian government through Clean Energy Finance Corporation (CEFC), with a cornerstone commitment of up to $125 million, alongside a $500 million seed investment from Australian Ethical.

The portfolio follows five key thematics that includes decarbonisation, digitalisation, urbanisation, the circular economy and changing demographics, with impact measurement applied across all investments. Initial allocations include recycling infrastructure, renewable energy and storage, renewable-powered data centres and aged care assets.

Australian Ethical’s Chief Investment Officer, Ludovic Theau, said private markets present the largest opportunity to support Australia’s transition to net zero.

“We’re pleased to receive the support of the Australian Government through the partnership with the CEFC on this Fund. With the road to net-zero before us, this Fund allows investors to capitalise on the long-term growth opportunity this presents and feel good about where their money is invested,” Theau said.

He added the firm will leverage its expertise, capability and networks to partner with some of the best specialists and managers to democratise access to these opportunities for wholesale channels.

The ethical fund has said all investments are screened against its Ethical Charter, ensuring capital deployment avoids harm while supporting positive outcomes for people, planet and animals.

CEFC’s Executive Director, Heechung Sung, said the investment demonstrates how public capital can catalyse new sustainable finance platforms.

“By backing a new institutional vehicle with CEFC investments, we are helping to establish a scalable platform for climate-focused assets, crowding in capital and expanding the reach of sustainable finance to a broader audience to accelerate Australia’s decarbonisation,” Sung said.

The fund also includes an independent Impact Advisory Forum to oversee reporting and assess portfolio outcomes. It is targeting returns of 11–13% per annum over seven years, after fees, while offering quarterly liquidity.

Australian Ethical’s Head of Private Markets, Adam Roberts, said the structure allows investors to access diversified private investments without concentrating capital in a single asset.

“Drawing on two decades of impact investing experience, we apply institutional rigour and active industry engagement to identify solutions to global challenges,” Roberts said.