Ambienta eyes larger size for fourth fund

While the GP is aiming for a larger target, it will be "to a level that will allow us to remain a mid-market player, with a little bit more capacity to invest in larger groups", CIO Mauro Roversi told Unquote.

"We believe we need to scale," Roversi said, acknowledging that Ambienta is facing increasing competition by larger peers that are now establishing impact funds. "Size matters – bigger size means being more competitive in the market. We need to scale up our operations, capital, assets, products and so on [to compete]."

Ambienta launched its third fund in early 2018 with a target of EUR 500m and held a first and final close in May, hitting the EUR 635m hard-cap. This was already a significant increase on the previous vehicle, Ambienta II, which closed on EUR 323m in 2014. Rede Partners worked as placement agent on these two fundraises.

Depending on the deployment of the current vehicle, Ambienta could start fundraising in 2022-2023. The sponsor is expected to deploy the remaining 50% dry powder in Ambienta III across three or four platform companies across sustainable businesses in different sectors by next year, Roversi said. A "substantial" amount of capital will be reserved to help finance bolt-on acquisitions.

For its next vehicle, Ambienta does not plan to veer from its investment theme of environmental impact and sustainability, which Roversi said is a big draw for LPs that both want to invest in sustainability and receive strong returns.

The GP looks to broaden its LP base with the hope of attracting Asian investors into the mix for the next fund, Roversi said. Its third fund is currently dominated by European investors, including Switzerland's Capital Dynamics, Italy's Cassa Forense and Finland's Merimies Eläkekassa, among others, according to Unquote Data.

Click here for a more in-depth look at Ambienta's investment and exit strategies.

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