Investment Profile
At Virgin Green Fund, we seek out opportunities to partner with superior management teams and established businesses in the renewable energy and resource efficiency sectors seeking to raise growth capital.
- Renewable Energy: The supply of energy generated from renewable natural resources that are replenishable, non-hydrocarbon-based; focus will be on improving supply-side economics; and
- Resource Efficiency: More efficient and cleaner use of energy and resources, including water and waste, with attractive ROI and payback periods; focus will be on improving demand-side economics.
Our portfolio is diversified amongst sub-sectors and balanced geographically between North America and Europe, our target geographies. Our investments include landmark sector transactions such as Gevo, GreenRoad Technologies and Seven Seas Water.
Investment Guidelines
We invest in product, equipment and service companies with an established business model proven by a robust pipeline and a track record of growth in revenues and profits that operate in subsectors experiencing long-term secular growth.
We will utilize the following guidelines when evaluating a potential investment opportunity:
- Company operates in an industry demonstrating considerable growth (double-digit) and where the company can achieve sustained profitable growth at rates above 20% per annum.
- Company has a unique value proposition as a market leader in its field with products, equipment or services that provide a rapid return-on-investment to its customers or where unit economics provide a high internal rate of return to the company.
- Company is led by an existing strong management team that may require a limited number of high-level additions that VGF would need help to recruit at the time of an investment or shortly thereafter.
- Company can demonstrate commercial traction resulting in material revenues (usually defined as $10 million and above) and healthy operating profits, or is on track to achieve profitability with the capital to be invested within a short time frame (1-2 years).
- Company has the potential to be a market leader through consolidation activity both vertical and horizontal and by realizing revenue and cost synergies.
Investment Charter
We seek investment opportunities that will match our Investment Charter:
- Invest in companies whose products and services reduce net greenhouse gas emissions and/or improve management of scarce resources, operate in environmentally and economically sustainable markets, and have a long-term positive impact on their communities and society more broadly.
- Conduct business with our partners in a way that is open, collaborative, based on trust and equitable.