Paris green finance initiatives - European Commission · Paris green finance initiatives. 3 Paris...
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A growth fund for sustainable cities
Transcript of Paris green finance initiatives - European Commission · Paris green finance initiatives. 3 Paris...
A growth fund for sustainable cities
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1Paris green finance initiatives
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Paris city supports green & sustainable finance
Paris has adopted a green and sustainable financing strategy
> New Paris Climate Plan to reach carbon neutrality in 2050
> A goal even more ambitious than the COP21
Paris is committed to accelerate the ecological transition
> 1st Paris Climate bond issued in 2015 for €300 millions
> Paris sustainability bond issued in 2017 for €320 million
> Paris green financial marketplace positive ecosystem
> Paris city encourages the mobilization of privates actors
Furthermore, Paris supports green and sustainable finance
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Paris Green Fund: innovative financial instrument
Objective:Leveraging public and private investment to finance innovative and fast growing SMEsto accelerate the ecological transition in large cities
> A territorial investment fund for the ecological transition initiated by Paris City
> Managed by an independent management company (Demeter) ;
> Investing in innovative SMEs whose solutions contribute to ecological transition
> Building on the innovative Paris area ecosystem
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Paris Green Fund timeframe
Launch of tender to select
management firm
Fund gets
TEEC label
1st investmentsChoice of the mngt firm
Bids from mngt firms
Preparation Fund raising by mngt firm
New regulation
enabling Paris
to invest in a fund
1st closing at €100m
Paris City council’s vote
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2Demeter in a nutshell
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Demeter in a nutshell
> An independent management company
> A cleantech pioneer now European leader in sustainable investment
> Venture, growth and infrastructure expertise
> 35 people in France, Germany, Spain
> 80+ institutional and corporate investors
> €1bn assets under management
> 130 investments
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3What is a growth fund?
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What is a growth fund?
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4Paris Green Fund
Paris Green Fund governance
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Compliance Com.
5-7 investors
Bylaws & compliance
Strategic Committee
Qualified experts
Strategic guidelines
Management Co.
Fund management
Advisory Committee
15 investors + experts
Opinion on investments
Investment
committee
Fund
Repr. by the Man. Co.
X
Portfolio
company
Y
Portfolio
company
Z
Portfolio
company…
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Paris Green Fund investors
€200m fund : Strong leverage on Paris city investment (€15m)
A significant majority of private investors
Institutional investors
Corporates
Family offices
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Building Mobility Energy Air Waste Digital
Paris Green Fund investment strategy
€5m to €15m unit investment in equity
Innovative & fast growing & profitable SMEs
x 2 net multiple, 15% net IRR
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Example of companies
Digital solutions for construction waste management
€25m revenue, 25% CAGR
Consultants for energy-efficient building renovation
€20m revenue, 40% CAGR
Electric vehicle charging stations manufacturer
€25m revenue, 20% CAGR
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5ESG & territorial impact
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ESG (Demeter) & territorial impact (Carbone 4)
Annual
reporting…
Fund
exit
Deal
preliminary
evaluation
grid
Deal
detailed
impact
evaluation
Deal
cumulated
impact
reporting
Fund
ESG & impact
annual reporting
Fund
ESG & impact
annual reporting
Detailed
study
Advisory
CommitteeAdvisory
Committee
Fund
investment
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6Key points
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Key points
Large cities face huge sustainability challenges …
… and represent great markets for sustainability SMEs1
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Large cities names are powerful brands to launch a fund …
… and are effective catalysts to leverage on private investors
Funds must be managed by professional fund managers …
… and financial performance must be the primary objective
We are happy to share our experience to help to launch new funds …
