Ludovic Theau

A leading ethical fund manager, Australian Ethical, has announced the expansion of its private markets offering with the launch of its Australian Ethical Growth Opportunities Fund providing institutional grade ethical private markets investment to wholesale investors.

Australian Ethical’s Growth Opportunities Fund has received Australian Government backing via the Clean Energy Finance Corporation (CEFC) with a cornerstone commitment up to $125 million, alongside a $500 million seed investment from Australian Ethical.

The Fund provides wholesale investors access to an institutional grade, scalable, diversified portfolio of private markets investments designed to deliver both market rate returns and measurable impact. It is an open-ended fund that blends investments alongside like-minded institutional capital, delivering purposeful, long-term exposure to unlisted real assets.

It follows five key thematics: decarbonisation, digitalisation, urbanisation, circular economy and changing demographics, and employs impact measurement to assess the net benefit of each investment. Initial investments include recycling infrastructure, renewable energy and battery storage, renewable data centres, and aged care facilities.

In addition, every investment is aligned to Australian Ethical’s Ethical Charter, which guides how capital is allocated to create positive outcomes while avoiding unnecessary harm to people, planet and animals.

Australian Ethical Chief Investment Officer Ludovic Theau said: “The biggest opportunity to capitalise on and support Australia’s net zero transition is in private markets. We’re leveraging our expertise, capability and networks to partner with some of the best specialists and managers to democratise access to these opportunities for wholesale channels, and we’re co-investing capital to take advantage of and support these opportunities together.

“We’re pleased to receive the support of the Australian Government through the partnership with the CEFC on this Fund. With the road to net-zero before us, this Fund allows investors to capitalise on the long-term growth opportunity this presents and feel good about where their money is invested.”

According to a McKinsey report for the Business Council of Australia, a 2035 climate target north of 60 per cent will require more than $400 billion in new capital investment from government and industry.

CEFC Executive Director, Heechung Sung said: “This investment demonstrates how the CEFC can use its existing assets to help catalyse new market offerings and support the next phase of growth for sustainable finance.

“By backing a new institutional vehicle with CEFC investments, we are helping to establish a scalable platform for climate-focused assets, crowding in capital and expanding the reach of sustainable finance to a broader audience to accelerate Australia’s decarbonisation.”

Australian Ethical’s Head of Private Markets Adam Roberts said: “Australian Ethical’s Growth Opportunities Fund gives wholesale investors access to a wide range of impactful private investments providing immediate diversity without having to commit and tie-up large amounts of capital in a single private equity or venture capital investment.

“Drawing on two decades of impact investing experience, we apply institutional rigour and active industry engagement to identify solutions to global challenges. We invest where we see enduring tailwinds and the potential for attractive long-term, risk adjusted returns.”

The Fund has an Impact Advisory Forum that is separate to the Fund’s investment team, who review and monitor the impact reporting across the portfolio. It aims to deliver 11-13% per annum (after fees and expenses) over 7-year periods whilst providing quarterly liquidity.

The post CEFC invests up to $125m with Australian Ethical in new partnership supporting a net-zero future  appeared first on AdviserVoice.

Ludovic Theau

Climate Tech Partners (CTP) has reached first close for its new fund, anchored by $15 million each from Australian Ethical Investment (AEI) and the Clean Energy Finance Corporation (CEFC).  This achievement comes despite a challenging environment for tech and venture capital fundraising.

The strong institutional support reflects an appetite for a new model of venture capital funding, one that deploys capital in collaboration with corporate partners who are likely to be the end users of such technology. CTP’s co-operative approach with industry brings benefits for all parties involved by:

• Demand validation – de-risking investments through corporate validation.
• Decarbonisation solutions – Addressing corporate needs through a curated deal flow of targeted technology solutions.
• Portfolio acceleration – Creating high-probability customer pathways for early-stage companies.

The first close builds on a cornerstone investment from the BESEN Family Office, a renowned private equity investor, and separate vehicle commitments from Qantas and Airbus focused on aviation decarbonisation opportunities. CTP has so far secured over $50 million in commitments across the fund and aviation vehicle. In addition, CTP has secured 11 corporate partners across its core focus sectors of energy, transport, industrials, and mining.

Climate Tech Partners is set to deploy capital into a pipeline of high-potential startups focusing on companies at Series A. Guided by deep engagement with corporate partners, the fund has prioritised areas such as gridtech, low carbon fuels, and climate adaptation technologies.

The fund’s first close comes against broader global momentum for decarbonisation, despite US volatility. China, the world’s second largest economy, continues to accelerate investments in renewables, electrification, and advanced energy technologies. The European Union remains steadfast in its regulatory, policy, and capital market alignment toward emissions reduction and green innovation.

The recent election in Australia delivered policy certainty for the cleantech sector. This clarity drives investment to scale with greater confidence and long-term focus.

“We are thrilled to support Climate Tech Partners and their model, which is driven by industry demand,” said Ian Learmonth, CEO of the CEFC. “The team at Climate Tech Partners has a strong background in venture capital and tech investments and is well-placed to identify the next wave of technologies that will drive emissions reduction across key sectors. We are confident this team will deliver both environmental and commercial outcomes.”

Malcolm Thornton, Head of Growth Capital at the CEFC, said: “This investment supports the advancement of technology essential to Australia’s climate transition – including rapid prototyping, manufacturing, and exposure to market competition. The climate tech space in Australia is vibrant, and this is an important time to back innovative companies making breakthroughs in critical technologies.”

Ludovic Theau, Chief Investment Officer at Australian Ethical, said: “We’re pleased with this opportunity to advance our investment in early-stage climate technology. This Fund allows us to feed capital to the emerging companies in energy and climate tech that will shape a net-zero tomorrow.  We’re confident in the growth opportunity this represents and are committed to climate and tech as a source of competitive returns for our investors.”

“This partnership aligns with our Ethical Charter and our approach to be at the forefront of investment in future focused sectors that support a net-zero economy.”

Patrick Sieb, Co-Founder of Climate Tech Partners said: “We’re seeing a wave of breakthrough climate tech – electrification, sustainable fuels, next-gen grids -gaining real traction.”

“With tech readiness, corporate demand, and policy aligning, it’s a powerful moment to invest. Even in the US, bipartisan backing for energy security and sustainable fuels shows just how durable this opportunity is.”

Tom Kline, Co-Founder of Climate Tech Partners said: “The Australian Government is committed to long-term climate ambition, which sends a powerful signal to innovators and investors alike.”

“This is a once-in-a-generation chance for Australia to lead in climate solutions – and we’re proud to be driving it, backed by family offices, super funds, and government with corporate partners to derisk and accelerate our investments.”

The post Australian Ethical and the CEFC invest $30 million in Climate Tech Partners as fund reaches first close appeared first on AdviserVoice.

Nathan brings more than 30 years’ experience in Australian financial markets, including managing up to $6.5bn in Australian equities portfolios as Deputy Head of Equities at Perpetual Investments and co-founding Ethical Partners Funds Management where he was the Investment Director.

In this role, Nathan will lead Australian Ethical’s high-performing equities team and contribute to furthering the development of the firms’ global and local equities strategies, product offering, and support on the expansion of distribution activity.

Australian Ethical CIO Ludovic Theau said, “We have been investing in our investment capability in a disciplined way over the past 5 years and Nathan’s appointment is yet another milestone in the execution of our strategy.

“Nathan brings a depth of knowledge and expertise in responsible investment leadership, and his appointment builds on the exceptional talent we already have. He will play a critical role in continuing to deliver on our conviction that ethical investment delivers strong long-term performance.”

Incoming Head of Equities Nathan Parkin said, “I’m excited to join Australian Ethical as an organisation with such authenticity and clear purpose. I look forward to helping Australian Ethical continue to provide excellence in ethical investment, on behalf of those wanting to exercise genuine choice. It’s philosophy also aligns with my belief that capital markets have a critical role in encouraging corporates to further their net zero ambitions.”

This appointment follows Australian Ethical’s acquisition of sustainable fixed Income manager Altius Asset Management and its team of seven, and the appointment of Adam Roberts to the role of Head of Private Markets in mid-2024.

Nathan joins Australian Ethical at a time when it’s investment approach, products and team continue to receive recognition with the multi-asset suite most recently receiving a ‘Recommended’ Lonsec rating, and the flagship Australian Shares Fund achieving 30 years of out-performance against the benchmark.

The post Australian Ethical appoints Head of Equities  appeared first on AdviserVoice.

John McMurdo

Australian Ethical Investment Limited (ASX: AEF) has announced it has entered into a binding agreement to acquire the sustainable fixed income asset management business, Altius Asset Management from Australian Unity.

The acquisition, when completed, will see Australian Ethical grow its funds under management (FUM) by circa A$2 billion, from $10.3 billion to circa $12.3 billion an increase of 19%.

The combined Australian Ethical and Altius fixed income capability will result in a sustainable fixed income team of seven, an expanded bond fund portfolio, and Australian Unity becoming one of Australian Ethical’s largest institutional clients.

The proposed acquisition is consistent with Australian Ethical’s strategy to serve the growing potential addressable market created by the structural drivers favouring responsible investing, and to offer super fund members and investors increased access to ethical investment capability.

Australian Ethical will pay Australian Unity $4.25 million in cash upon transaction completion, which will be subject to the satisfaction of Conditions Precedent (expected to occur in July), with an additional $1.25 million payable after completion, contingent on Australian Unity investment meeting certain transition steps and maintaining agreed minimum FUM targets. While at a lower revenue margin consistent with the fixed income asset class, this transaction will be EPS accretive from financial close and is expected to generate circa $1million of EBITDA in FY25.

Australian Ethical Chief Executive Officer John McMurdo: “The acquisition of leading fixed-income fund manager Altius is another important milestone for Australian Ethical as we scale and broaden our investment capability consistent with our strategy and Ethical Charter. Transactions such as this add to our momentum as a purpose-driven business and our ability to deliver sound investment returns while influencing progress towards a better future for people, animals, and planet.

“We are delighted to welcome the Altius team, their clients, and Australian Unity as a key institutional client partner. They join 130,000 investors and superannuation customers who have also chosen to invest ethically.”

Australian Ethical, CIO Ludovic Theau added: “This acquisition also signifies our ongoing commitment to work with like-minded organisations such as Australian Unity. We look forward to this being the first of many new investment initiatives, where Australian Ethical and Australian Unity can combine their leadership capabilities in ethical investment management and social impact best market practice.”

Altius’s Co-founder and Chief Investment Officer Bill Bovingdon: “We are excited by the opportunity to join Australian Ethical, the market-leading ethical investment platform, and to combine Altius’ deep expertise in responsible fixed income with Australian Ethical’s ethical investing heritage across asset classes.

“Naturally, clients will be at the centre of our considerations as we work closely with Australian Unity on a successful transfer of funds.”

Dr Joe Fernandes, Australian Unity Group Chief Investment Officer and Executive General Manager, Funds Management: “The transaction is an endorsement of the sustainable investment approach Altius and Australian Unity have built and refined for more than a decade, achieving continuity, additional scale and focus for the Altius business.

“The transaction with Australian Ethical aligns with Australian Unity’s strategy of partnering to accelerate its ambitions and focusing our commercial portfolio to areas where we can maximise impact.

Under the deal terms, Altius co-founders Bill Bovingdon, Chris Dickman and Gavin Goodhand, will join the Australian Ethical investment team under Chief Investment Officer Ludovic Theau.

The new capability, and combined investment team will continue to operate in line with Altius Asset Management’s Sustainability Policy and will be in line with Australian Ethical’s Ethical Charter.

Altius, as part of Australian Ethical’s expanded fixed income capability, will continue to oversee Australian Unity’s cash and fixed interest portfolios, as well as the other fixed income funds and mandates currently managed by Altius.

The transaction also includes an ongoing commitment by Australian Ethical and Australian Unity to work together. Australian Ethical looks forward to working in partnership with Australian Unity on further co-investment and product development opportunities.

Australian Ethical’s half year FY24 results and reaching a milestone $10 billion in FUM in March 2024, demonstrate that investment in the business is achieving growth and scale, supported by its strengthening business platform.

The post Australian Ethical to acquire Altius Asset Management appeared first on AdviserVoice.

Ludovic Theau

Leading ethical fund manager Australian Ethical has partnered with renewable and infrastructure debt specialist Infradebt to launch an infrastructure debt fund that will provide capital for key Australian projects spanning renewable energy, social infrastructure, and property projects with a social or environmental benefit.

Investors in the Fund will have direct visibility of the amount of capital allocated to underlying projects, and the environmental and social benefits each achieves. Infradebt, is already a leading active participant in Australia’s energy transition, having funded more than 40 renewables projects to date.

Financing renewable energy infrastructure projects in solar, wind, hydro, geothermal power generation and energy storage will be critical to Australia’s transition.

Some of the Fund’s infrastructure investments include loans to the Yarranlea Solar Farm, to implement solar and battery projects in remote communities, and standalone battery projects such as the Genex Bouldercombe in Queensland, which will allow a predictable supply of electricity to the grid at peak times of demand.

Chief Investment Officer Ludovic Theau says Australian Ethical’s Infrastructure Debt Fund will be at the forefront of capital deployment that will support Australia’s renewable energy transition.

“We estimate that debt capital will provide 50-60% of the total capital expenditure that’s required to meet Australia’s renewable energy transition targets. Given Australia is aiming to increase its renewable energy generation from 39% today to 82% by 2030, Australian Ethical considers its expansion into infrastructure debt as an important growth opportunity that will serve a dual purpose – of delivering good risk-adjusted returns and contribute towards meeting these targets. 

“Australian Ethical has doubled its funds under management in the past three years; product innovation that demonstrates our ethical investing pedigree, and offers investors opportunities for diversification, is an important part of our growth strategy. This partnership with Infradebt, also a leader in its field, allows us to bolster our investment capabilities by bringing in-depth expertise across new asset classes,” said Mr Theau. 

Infradebt Investment Director and Co-Founder Alex Ramsey said, “we’re pleased to be partnering with Australian Ethical on a product that will be integral to building Australia’s green transition. The energy transition is of paramount importance to our community, it will be complicated and challenging, and the Fund will allow investors to access the requisite investment capability to participate and make a meaningful contribution.

“By sitting higher in the capital structure, Infrastructure debt tends to offer investors stable and predictable cash flow, and diversification away from more commonly held equity portfolios. It also offers good risk-adjusted returns, and portfolio protection that can work to help hedge against market volatility and inflation, all while contributing positive social and environmental outcomes and achieving financial returns.” said Mr Ramsey.

The post Australian Ethical and Infradebt launch infrastructure debt fund appeared first on AdviserVoice.

Natalie Tam

Australian Ethical Investment (ASX: AEF) is pleased to announce the appointment of seasoned investment manager Ms Natalie Tam as its portfolio manager of Systematic Equities.

Ms Tam will be responsible for Australian Ethical’s Diversified Shares and International Shares funds.

She joins Australian Ethical from Perpetual Limited where, as portfolio manager, she was responsible for around $5 billion in Direct Equities.

Ms Tam has two decades of experience in Australian equity markets, including 18 years at abrdn, where she held various roles including deputy head of Australian Equities. Her role incorporated managing the Sustainable Australian Equity fund, and the Australian Small Companies fund.

Australian Ethical Chief Investment Officer Ludovic Theau said: “Natalie’s appointment reflects Australian Ethical’s focus on strengthening our investment team across all asset classes. We’re building out a systematic equities platform that we believe will become an increasingly integral part of Australian Ethical’s overall investment offering.”

“Ms Tam’s depth of experience in equities and portfolio management made her the ideal appointment for this newly created position.”

Australian Ethical has 11 managed funds, including Australian Shares, International Shares, High-Growth, Emerging Companies, and Fixed Income funds. Last year it launched its High Conviction fund, and in September, it launched its Moderate fund, followed by Conservative fund last month.

The post Australian Ethical appoints Systematic Equities PM  appeared first on AdviserVoice.

Ludovic Theau will join the firm as Chief Investment Officer effective 3 April 2023. Ludo is the former Chief Investment Officer of the $30bn Clean Energy Finance Corporation. He has more than 30 years of investment management and investment banking experience across Europe and Australia with global organisations including Hastings, Westpac, ABN Amro, Macquarie, UBS and BNP Paribas.  He has deep experience in multiple asset classes including infrastructure, structured debt, public equities, private markets and private equity/venture capital. Ludo’s extensive international experience, and depth of knowledge in responsible investing makes him a perfect fit for the next phase of growth at Australian Ethical.

Australian Ethical’s Head of Asset Allocation, John Woods, has been promoted to the role of Deputy Chief Investment Officer and Head of Multi Assets. A registered CFA, John has 17 years of investment experience across asset allocation and prior to joining Australian Ethical in 2021, held senior investment roles at as well as strategy and portfolio management roles at CLSA, Macquarie Group, and IBM.

Alison George will commence in the new role of Head of Impact & Ethics effective 1 May 2023. Alison will lead Australian Ethical’s widely recognised and industry leading ethics research team and also be accountable for the ongoing development of the company’s impact framework and delivery. This will further ensure the company achieves maximum positive impact from every dollar of invested capital and from its significant advocacy and thought leadership agenda. Alison has more than 25 years’ experience across impact investing, ESG, sustainability and accounting services.  She has held previous senior investment and leadership roles at Regnan, Monash Sustainability Enterprises, Essential Services Commission and EY.

Head of Ethics Research, Dr Stuart Palmer, will step into the role of Ethical Futures Lead. In this new role, Stuart will focus on bespoke dedicated areas of research and analysis relating to the ethical investing landscape.

Managing Director John McMurdo said “Australian Ethical’s significant leadership and global reputation, enables it to attract and retain domestic and international candidates of the highest calibre.  The appointments of Ludo, John and Alison reinforce this position, and further enhance our leadership in ethical investing not only in Australia, but globally.”

The post Australian Ethical appoints CIO and extends its Ethics Research leadership appeared first on AdviserVoice.