Targeted at an initial volume of €250 million, the European Circular Bioeconomy Fund (ECBF) is oversubscribed at about €300 million. The EU-backed fund will finance growth companies in the bioeconomy and biobased circular economy.
According to the experts of the impact-driven ECBF, after digitalization, the next global wave of transformation is rolling in the Bio Revolution. This means a change from a linear, fossil-based economy to a sustainable, bio-based economy.
The ECBF is based in Luxembourg, managed by Hauck & Aufhäuser Funds Services S.A. as an Alternative Investment Fund Manager (AIFM) and consulted by the experienced investment team of ECBF Management GmbH.
The fund has received attention from a range of private and public investors, representing 8 countries. It will be used to scale companies committed to the environmental, social and governance (ESG) integration.
In the course of the two previous signings, Landwirtschaftliche Rentenbank, Allianz France, Invest NL, GC, Firmenich, Stellar Impact (a vehicle managed by Telos Impact), Dr. Hans-Riegel Holding, Bellevue Investments joined the group of shareholders amongst others. Companies such as Neste, Nestlé, BÜFA, NRW.BANK, Volkswohl Bund, Corbion, Dr. Hettich Beteiligungen, Koehler Group as well as the Wortmann Family Office, and three other investors have already participated in the previous rounds, thus joining the mission of the ESG fund. In total, the group of investors now includes 25 shareholders.
Co-Founder and Managing Partner of ECBF, Michael Brandkamp, commented: “We are proud and grateful to have received the trust of investors from eight different countries to advance this important growth sector. Exceeding our initial target of €250 million is a big commitment for us: with the necessary expertise, strong dedication of the ECBF team and the right partners, we can make our vision of a bio-based economy a reality. Many European founders have enormous potential to help ride the wave of the Bio Revolution, and we will do our utmost to support them. This is the only way we can significantly support a sustainable economy – and thus a secure future for all”.
Initiated by the European Commission (EC) to build a long-term sustainable economy and drive the transformation from a fossil-based to a bio-based circular economy, the Venture Capital Fund was established in 2020 with a pledge of €100 million from the European Investment Bank (EIB).
Christian Kettel Thomsen, Vice-President at the European Investment Bank said: “We are very pleased to have been an anchor investor of the European Circular Bioeconomy Fund, which provides crucial financing for innovators in the bioeconomy sector. From water stress management solutions, to insect-based ingredients or the valorisation of orange peels that would otherwise go to waste, the first investments made by the fund show the potential of the bioeconomy sector to help address the environmental challenges of our time and contribute to the European Union’s transition to a carbon-neutral and circular economy.”
With team members from 13 different nations, the ECBF combines diversity, economic and scientific expertise, longstanding experience in various fields as well as an entrepreneurial spirit. Michael Brandkamp, Michael Nettersheim and Dirk Saßmannshausen as well as Peter Nieuwenhuizen, Stéphane Roussel and Marie Asano lead the investment activities.
Numerous companies have visionary approaches to implementing the European climate goals and its innovations are significantly aligned with the UN-SDGs. However, the focus of European investors is still strongly on growth companies active in digitalization, energy or mobility. Although these sectors play an essential role, a bio-based economy is also becoming increasingly urgent in the face of climate change. By activating and educating private and public investors, coupled with scientific and strategic advice, the ECBF is making a decisive contribution to the implementation of the goals for a climate-neutral Europe.
The ECBF believes that return and impact go hand in hand. The funds raised are to be invested in companies with high economic potential in the bio-economy and bio-based circular economy sectors. Every investment of this fund will be screened to ensure it proactively contributes to achieving the European environmental goals.
