(Credit: Canva)HESTA, the health and community services superfund, is investing an additional $200 million ($290.8 million) to its sustainability-focused private investment initiative with Stafford Capital Partners.
HESTA's Sustainable Money Investment Trust (HSCIT) will generate USD$450 million ($653.1 million) in capital as a result of the transaction, which will be allocated as investments in lower-mid-market private equity firms. The specific investments must align with at least one of the United Nations’ sustainable development goals targeting good health and well-being, gender equality, affordable and clean energy, climate action, clean water sanitation, as well as decent work and economic growth.
Following the completion of its merger with Brisbane-based Mercy Super one month ago, HESTA, which now oversees about $70 billion, claims that its sustainable growth option had a 10.39 percent return as of 30 June 2022.
As of today, HESTA's investments include Convoy, a US-based digital freight network that efficiently connects shippers to carriers to cut carbon emissions, and Gogoro, a Taiwanese manufacturer of electric scooters, replaceable battery packs, and battery replacement stations.
HESTA CIO Sonya Sawtell-Rickson stated, “We continue to look for ways to invest in opportunities arising out of the need to transition to a lower carbon and more sustainable future. Through private equity investments like this we’re supporting innovative, cutting-edge companies grow and develop their businesses to deliver sustainability solutions at greater scale to the market. This is helping us to provide strong, long-term returns for HESTA members while also having a positive impact on progressing global sustainable development goals."
Stafford Capital Partners was founded in Sydney in 2014 as a result of a merger between Quay Partners and Stafford Timberland, yielding $2.6 billion in assets under management at the time. Since then, the firm has expanded to operate around USD$7.5 billion ($10.9 billion) in total capital investment, employing more than 80 people to advise over 170 institutional clients worldwide. Additionally, the company oversees co-investments, secondary investments, and primary investments in infrastructure, agriculture, food, sustainable private equity, and private credit.
“We are delighted to have further strengthened our long-term partnership with HESTA, one of the world’s leading investors in sustainable private equity,” Stafford Private Equity partner Kurt Faulhaber said. “By focusing on co-investments and GP-led transactions, our program offers unique and cost-efficient access to lower-midmarket private equity businesses that meet long-term sustainability goals.”
