Especially now, investors expressly opt for sustainable impact
Wire Private Markets Fund attracts € 25 million
The new impact fund Wire Private Markets Fund (WPMF) has officially opened. Investors have now committed € 25 million and their number is growing. WMPF invests in funds that pursue a positive impact on nature and people. It is a solution to the increasing demand among investors for meaningful investment opportunities. The fund has a minimum ticket size of € 1 million, a duration of 12 years and it aims to achieve a financial return of 7-10%. Distinctive about the fund is the concrete impact objective linked to it: the value of the measurable positive impact created must be at least twice as big as the amount invested.
Ronald Janse, fund manager WPMF: “WPMF was created in 2019, to promote proactive investment with both financial and social return and to make it accessible to private investors. The extremely impactful Corona virus outbreak is showing mankind yet again that investing in the well-being of people and nature is not a luxury, but a necessity. Being solely financially driven is no longer appropriate to the present time: Ecosystems all over the world are under extreme pressure. For decades, deforestation, pollution, wildlife trade, over-consumption and climate change have been weakening the global ecological balance. Wherever natural habitats and living conditions of animals are under unnatural pressure, viruses all too easily are given opportunity to pass from animals to humans. That is no coincidence, but a foreseeable consequence of our own actions.”
WPMF was created to meet clients’ requests for a high-quality impact fund, clustering Wire Group’s long-standing investment expertise. With a capable and experienced team with seasoned impact and financial backgrounds, WPMF focuses on regeneration of human and natural capital. To warrant the multiple return, the fund team’s internal remuneration structure is linked to both impact results and financial performance on a 50%-50% basis.
To investors, WPMF offers a solution and an opportunity for concrete action. With a target portfolio of 12 to 15 of the best global impact funds, the fund invests in 150 to 250 underlying impact companies, which contribute to the required large-scale system change with innovative products and services. These may include companies engaged in for instance digital educational innovation, health care, meat substitutes and sustainable forestry and nature management. It is no coincidence that all these sectors turned out to be vital in recent months. Ronald Janse: “Now seems to be the momentum to convert the collective awareness and the decisiveness emerging from the Corona pandemic into lasting behavioral change. Now is the time to invest consciously in innovative solutions that contribute to restoring the balance that is missing on a wide front.”
Over the next year, the fund will remain open for new subscriptions. Tera Terpstra, co-founder of Wire Group and responsible for Investor Relations, says: “In recent weeks, we’ve been pleasantly surprised to be approached by several new investors, who clearly recognize the importance of investing with impact. Currently, mainstream investors are sitting with their arms folded, yet conscious investors are proactively looking for opportunities to invest professionally with impact. Fortunately, the number of this kind of propositions is growing, also in the Netherlands.”
For more information: www.wireprivatemarketsfund.nl