HESTA has invested an additional US$200 million ($290.6 million) in its Sustainable Capital Investment Trust (HSCIT), managed in partnership with Stafford Capital Partners.
HSCIT’s investments align with the United Nations Sustainable Development Goals, including good health and wellbeing, gender equality, affordable and clear energy, climate action, clean water and sanitation, and decent work and economic growth.
Moreover, HSCIT targets direct co-investments with leading sustainable private equity managers.
The industry super fund’s chief investment officer, Sonya Sawtell-Rickson, commented that HESTA is actively seeking opportunities to invest in a lower carbon and more sustainable future.
“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,” Ms Sawtell-Rickson said.
“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,” she concluded.
Kurt Faulhaber, partner at Stafford Private Equity, said that the firm was delighted to have further strengthened its partnership with the super fund.
“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,” Mr Faulhaber continued.
HESTA allocated the funds for the investment from its Sustainable Growth option, which invests in companies selected and managed based on specific ESG standards.
As of 30 June 2022, the HESTA Sustainable Growth option had averaged an annual return of 10.39 per cent.
InvestorDaily will host the ESG Summit in March 2023 where a range of industry experts will discuss all things ESG, including shifting consumer preferences towards financial advice that incorporates transparently sustainable, equitable, and environmentally progressive options, how advisers can equip themselves to meet the clients of the future, and take-home strategies for advisers to refine, differentiate, and communicate their ESG offering to their existing and future clients.