Adamantem Capital receives commitments worth $118m for emission reduction in its portfolio

Photo by Marcin Jozwiak on Unsplash.

Australian private equity firm Adamantem Capital has received commitments worth A$160 million ($118.5 million), from two government-owned funds, for its second fund to drive emission reduction across its portfolio.

The limited partners are Australian green bank, the Clean Energy Finance Corporation (CEFC), and Aware Super (formerly First State Super), Australia’s second-largest industry superannuation fund. They will serve as the cornerstone investors of the fund.

Adamantem Capital Fund II, which targets more than A$700 million, is the first Australian private equity fund to adopt a “cradle to grave” approach to the emissions impact of its assets, according to a statement.

The fund is also CEFC’s first investment in private equity.

Adamantem Capital Fund II targets mid-market companies, with a focus on consumer staples, healthcare and business-to-business services, enabling CEFC to influence the sustainability profile of a significant part of the Australian economy.

“It is estimated that 60 per cent of Australia’s national emissions come from companies outside the ASX 300,” CEFC said.

The Adamantem fund’s portfolio companies will be required to implement emission reduction targets — either eliminate or offset their emissions within a decade.

They will also be required to have an independent consultant undertake an energy and emissions baseline measurement covering Scope 1 and 2 emissions, in accordance with the International GHG Protocol.

CEFC will work with the fund’s newly-established Emissions Reduction Committee to develop and oversee detailed pathways for each portfolio company to achieve its emissions reduction target.

“The private equity sector is an asset class that is still in the early stages of climate transition. With more than $30 billion of assets under management in Australia’s private equity and venture capital industry, engaging this sector is critical to the continued decarbonisation of the Australian economy,” commented Ian Learmonth, CEO of CEFC.

Aware Super’s senior portfolio manager of private equity growth assets, Jenny Newmarch, added: “We know that climate change poses one of the most significant financial risks to our portfolio and our members’ retirement savings in the long term. We believe we can generate strong long-term returns while also supporting the economy to transition.”

She said that investments into private equity funds would help support a more sustainable and resilient economy, following Aware Super’s successful climate engagement activities from its public equities portfolio.

Adamantem Capital, established in 2016, manages more than A$1 billion in assets and is focused on investing in mid-market opportunities in Australia and New Zealand.

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.