Stafford Capital Partners and HESTA Expand Sustainable Private Equity Partnership

HESTA, an Australian super fund dedicated to people working in health and community services and a leader in sustainable investing, is committing a further US$200 million to the HESTA Sustainable Capital Investment Trust (HSCIT).

HSCIT is a targeted private equity investment program managed in partnership with Stafford Capital Partners, the US$200 million additional commitment brings the total program size to US$ 450 million.

HSCIT makes direct investments in lower-mid-market private equity businesses around the world that make material contributions to one or more of the following UN Sustainable Development Goals (SDGs): Good Health & Well-Being, Gender Equality, Affordable and Clean Energy, Climate Action, Clean Water and Sanitation, and Decent Work and Economic Growth.

HSCIT invests via an innovative strategy targeting direct co-investments alongside leading sustainable private equity managers, and seeks to generate attractive risk-adjusted returns.

HESTA has made the allocation from HESTA Sustainable Growth – an investment option that invests in companies selected and managed according to specific environmental, social and governance standards.

Commenting on the announcement, Kurt Faulhaber, Partner Stafford Private Equity, said: “We are delighted to have further strengthened our long-term partnership with HESTA, one of the world’s leading investors in sustainable private equity. 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.”

“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 to 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.”

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