January 1, 2004 Robeco will launch the innovative new private equity fund of funds, Robeco Sustainable Private Equity (the 'Fund'). The Fund applies sustainable investment criteria to the selection of a portfolio of private equity investments.
The investment portfolio of the Fund will be diversified across types of investments varying from sustainable private equity funds (dedicated sustainable private equity funds and mainstream private equity funds with a sustainable edge), sustainable direct (co-) investments and sustainable project financing transactions. In addition, the Fund will be diversified across investment stage of private equity investment, geography, sector, technology and time.
The inherent sustainability of the investments of the Fund is ensured by a two-step procedure. First, negative screening is used to exclude a limited number of industry sectors from the investment universe. These sectors are weapons, fur, tobacco, alcoholic beverages, adult entertainment and gambling. Second, using a positive list, the non-excluded investment opportunities are assessed on their Triple-P, social (People), environmental (Planet) and financial (Profit) merits.
Robeco Sustainable Private Equity has the objective of generating a long-term absolute net internal rate of return that is substantially higher than the return on public equity investments, and that is at least as high as the return on traditional or non-sustainable ways of private equity investing, but potentially higher due to an improved management of risks and use of opportunities derived from social and environmental developments.
The Fund is managed by experienced investment professionals of Robeco Alternative Investments. Robeco is one of Europe's leading asset management firms with almost EUR 110 billion of assets under management.
To complement its own competences, Robeco Alternative Investments will receive advice from experienced professionals of Rabobank's Sustainability and Social Innovation Department. The Rabobank Group is one of Europe's largest banking groups and the only privately held commercial bank in the world rated Triple-A by the rating agencies Moody's and Standard & Poor's. Rabobank is rated in the top category for sustainability performance (in 2003 number two of banks world-wide) by the Swiss based Sustainable Asset Management Group. The target size of the Fund is USD 200 million. Both Robeco and Rabobank will act as cornerstone investors to the Fund, by each committing up to the USD equivalent of EUR 35 million to the Fund.
About Robeco
Robeco provides discretionary asset management products and services, as well as a complete range of mutual funds to a large number of institutional and retail clients worldwide. Robeco's product range encompasses fixed-income and equity investments, as well as balanced accounts, money-market funds and alternative investments.
Robeco distributes its funds for the retail market directly, and through other financial institutions. Several of its mutual funds, including the flagship Robeco N.V., are listed on major European stock exchanges such as Amsterdam, Paris, Frankfurt and London.
As well as from its head office in Rotterdam, Robeco services its clients from its European offices in Belgium, France, Luxembourg, Switzerland, Germany and Spain. In the United States, Robeco has offices in New York, Chicago and San Francisco (Weiss, Peck & Greer), Boston (Boston Partners), White Plains (Sage Capital Management) and Toledo (Harbor Capital Advisors).
Robeco is the center for asset management with full operational independence within the Rabobank Group. The combination of the highest credit ratings from the major international rating agencies and the highest Sustainability Cluster Score within the banking sector reflects the high added value Rabobank has always offered its investors, members, clients and employees.