ESG Investment Approach
We believe true value creation comes from the alignment of interests of all stakeholders. Innovative companies need to bring disruptive commercial solutions with robust competitive advantages but should also consider their impact on the community and on the planet.
Through our active monitoring, best practices promotion, and the use of Sustainability tools, we increase the resilience and flexibility of our investees towards exogenous and external factors, and contribute to long-term value creation.
Our ESG investment approach helps understanding all stakeholders needs and ambitions. This way, we also support our investees attracting and retaining talent, probably the most relevant success factor for innovative companies.
Capital Preservation
• Companies already in expansion stage
• ESG as an effective additional investment filter
• ESG allows holistic management approach
• Preference for "quasi-capital“ as financial instrument
• Co-investments together with other Private Equities
• Capital deployments linked to milestones
• Grants reinforce investees capital structure
Sustainable Innovation identified as the only PE/VC fund with an ESG investment approach currently fundraising in Portugal
ESG Integration approach
• ESG criteria are mandatory for the investment decision
• Fund team works with investees implementing the best ESG practices
• Increase exit options and valuation through more resilient, profitable and ESG fitted companies
• ESG practices are implemented across all phases of the investment lifecycle: from investment analysis to active management and exit
Main Objectives
1. Minimize portfolio risk
3. Optimize value creation
Target Companies
Portuguese Innovative Cos (ANI certified)-Focused leadership teams-Sustainable competitive advantages-Growth & Expansion stages
(from Series A onwards)
Sectors
< 70% - Health & Life Sciences
< 20% - Energy Efficiency
< 20% - Blue Economy
< 10% - Other
Financial Instruments
Equity, Preferred Equity, Debt-Equity Mezzanine Loans, Convertible Notes
Estimated Investments
15 ~ 20 Investments
Investment Capital Terms
1m€ ~ 10m€ ticket size (max. 15% of the Fund size) 15-20 investments
Investment Cycle
3 ~ 6 years
Divestment Strategies
Equity w/ Put Option; M&A; IPO; SPACs
Co-Investments
Possibility of co-investments with other Portuguese and International entities (Pari-Passu and / or Preferred Equity)
Capital
50.000.000€
Maturity
6+1 years
Reporting
ESG Reports - Investors have the option to consolidate the Fund ESG achievements
CMVM Registration Number
1667
Sustainable Innovation Fund preferencial sectors
Health and Life Sciences
ENERGY EFFICIENCY
Blue Economy
INDUSTRY
AGRICULTURE
Our primary purpose is to directly impact 6 of the 17 United Nations Sustainable Development Goals.
Investment Process
Our investment process is based on UN PRI principles. Non-financial analysis is part of our scrutiny process when selecting the best investment opportunities. The fund management team defines ESG thresholds the company should attain to be considered an eligible investee. And these are mandatory for any investment decision.
Adding another layer to our investment decision process, reduces the operational risk of our portfolio. We partner with our portfolio companies, working together on strategy definition but also implementing the best ESG practices.
Investment Cycle
A set of UN SDGs indicators are defined and agreed as Sustainability Goals with the targeted companies. During the investment cycle, there will be a thorough follow up with regular measurement and annual Sustainability reporting, according to the GRI Standards (Global Reporting Initiative).
The main objective with this proximity and active support in the activity of the companies that are part of SIF’s portfolio is to guarantee its consistent and Sustainable valuation so that the divestment can occur effectively.
Reporting and Compliance
Sustainable Innovation Fund supports the Investees on their Sustainability reports, following the highest internationally recognized standards and in accordance with the GRI (Global Reporting Initiative).
This level of reporting and transparency allows these subsidiaries to benefit from a greater degree of reputation and recognition from their stakeholders, thus ensuring their constant valuation over time.
The Fund has external specialists and independent partners, in the scope of measuring the indicators and producing the respective Sustainability Reports.
Investment Strategy and Risk Mitigation
Investments aligned with EU economic priorities (Sustainability / Innovation).
Focus on PT companies, with high degrees of Innovation and R&D and sustainable competitive advantages (innovative services/products hard to replicate).
Investment decision supported by financial and sustainability analysis.
“ESG Integration” methodology, allows selecting companies with lower operational risk, including better HR management and talent retention.
Co-investments usually aligned with other Private Equities (e.g. Portugal Ventures, the Private Equity arm of the Portuguese State).
Capital deployments often associated to applications for EU grants and financing programs.
Alignment of interest with company founders (minority stakes with board seat).
Team
3xP Global has a highly senior team with a large scope of expertise that is tailored to implement ESG investment strategy together with ensuring best transparency practices. This VC team has a solid track-record, congregating experience of:
30 years managing sustainable assets and implementing sustainability strategies
+25 years of institutional and investor relations
+40 years of M&A and VC management
+100 years of global financial markets and Asset Management industry.
Diogo Moreira-Rato
Investment Committee
Member
Duarte Costa
Founder &
Managing Partner
Miguel J. Martins
Sustainable Investments
Partner
Portfolio Companies
LiMM
LiMM is a biotech developer of therapeutic products for the treatment of inflammatory, infectious, and metabolic diseases. LiMM is supported by Champalimaud, a prominent European health foundation and by a strong cap table.
SEE MOREPeekMed®
PeekMed is a global MedTech decision support tool, that allows a quick and efficient preoperative planning of orthopaedic procedures, representing substantial savings for implant manufacturers.
SEE MORESea4Us
Sea4Us is a biotech focused on research and development of novel pharma products based on marine components for unmet clinical needs, now developing ananalgesic product. Sea4Us has an extensive and exclusive library on marine components.
SEE MORESioslife
Sioslife develops and adapts unique interaction technologies for the senior population, promoting social, physical and intellectual development.Activities’ management and monitoring target are important tools for senior residences.
SEE MOREPortfolio Companies
LiMM
LiMM is a biotech developer of therapeutic products for the treatment of inflammatory, infectious, and metabolic diseases. LiMM is supported by Champalimaud, a prominent European health foundation and by a strong cap table.
SEE MOREPeekMed®
PeekMed is a global MedTech decision support tool, that allows a quick and efficient preoperative planning of orthopaedic procedures, representing substantial savings for implant manufacturers.
SEE MORESea4Us
Sea4Us is a biotech focused on research and development of novel pharma products based on marine components for unmet clinical needs, now developing ananalgesic product. Sea4Us has an extensive and exclusive library on marine components.
SEE MORESioslife
Sioslife develops and adapts unique interaction technologies for the senior population, promoting social, physical and intellectual development.Activities’ management and monitoring target are important tools for senior residences.
SEE MOREContacts
Please feel free to contact us if you have any questions, suggestions or concerns.
