HESTA pumps extra $200m into PE program
Australian super fund, HESTA, has committed a further USD$200 million to its private equity investment program managed in partnership with Stafford Capital Partners, the HESTA Sustainable Capital Investment Trust (HSCIT).
The program offers investors access to global private equity businesses in the lower to mid-market range that contribute to one or more of the United Nation’s (UN’s) Sustainable Development Goals (SDGs), including Good Health & Well-Being, Gender Equality, Affordable and Clean Energy, Climate Action, Clean Water and Sanitation, and Decent Work and Economic Growth.
With the program now sitting at USD$450 million in size, it seeks to deliver risk-adjusted returns through direct co-investments managed in collaboration with sustainable private equity managers.
“We are delighted to have further strengthened our long-term partnership with HESTA, one of the world’s leading investors in sustainable private equity,” Kurt Faulhaber, Partner at Stafford Private Equity, said.
“By focusing on co-investments and GP-led transactions, our program offers unique and cost-efficient access to lower-mid-market private equity businesses that meet long-term sustainability goals.”
The USD$200 million allocation made by HESTA came from its Sustainable Growth investment option that features carefully selected companies held up to certain environmental, social and governance (ESG) standards.
“We continue to look for ways to invest in opportunities arising out of the need to transition to a lower carbon and more sustainable future,” HESTA CIO, Sonya Sawtell-Rickson, said.
“Through private equity investments like this we’re supporting innovative, cutting-edge companies grow and develop their businesses to deliver sustainability solutions at greater scale to the market.
“This is helping us to provide strong, long-term returns for HESTA members while also having a positive impact on progressing global sustainable development goals.”
Hilarious the way these ISF paint why they use private equity. The sole reason for unlisted assets is their capacity to pad the valuations to suit their return metrics . And with large massages member contributions, the ISF can ride out the illiquidity of the PE investments and value then at whatever level they’re “friendly” ISF valuer determines.