Growth Partners Capital

Growth Blue

Growth Blue - Fundo de Capital de Risco Fechado ('Growth Blue') is a private equity fund that will invest in SMEs and Mid-Caps integrated into the Blue Economy. This fund, characterized by a strong focus on sustainability, will follow the same investment strategy as the other funds of Growth Partners Capital, supporting the growth of companies with solid financial results, structured teams, and potential for organic and/or inorganic growth. Geographically, Growth Blue will invest mainly in Portugal (85%) and projects returns in line with the results achieved by the fund management team over more than 20 years of investment in the Iberian Peninsula.

Growth Blue has the European Investment Fund (EIF) as an anchor investor, co-financed by the Capital and Quasi-Capital Fund of Banco Português de Fomento and the European Commission's InvestEU.

The fund's assets will be used for the acquisition, for a limited period, of equity and quasi-equity instruments of SMEs and Mid-Caps with high potential. The fund has a fixed term, is governed by Decree-Law 27/2023 from 28 April (RGA) and is regulated by CMVM.

Growth Blue is the first fund of Growth Partners Capital that seeks to integrate a sustainability dimension with the ability to generate returns in line with private equity standards, capitalizing on the potential of the Blue Economy in Portugal and Europe.

Read the Key Information Document (KID). Click here

Read the main features of the fund. Click Here

Read Pre-contractual disclosures related to sustainability. Click Here .

INFORMATION RELATED TO SUSTAINABILITY

Summary

As defined in Fund’s investment policy, 100% of the investments aims at promoting environmental and social characteristics, by investing in companies related to the Blue Economy and by excluding from investment companies, based on a list of criteria.

The Fund shall execute its investment policy by investing in equity and hybrid (including quasi-equity) instruments of target companies, with the goal to benefit from the increase in their valuation. The Fund shall privilege the acquisition of representative stakes of the target companies’ equity, preferably representing between 40% and 60% of the its share capital, in order to have an active influence its strategic decisions and shall seek to exert significant influence in its management. The attainment of the promoted environmental and social characteristics is measured primarily by the verification of wheter the investments made comply with the investment policy restrictions described before. Good governance practices in the investee companies are assessed prior to investment, and Growth privilleges the presence of a representative in the Board of Directors of the investee companies, which allows to closely monitor the governance practices.

No sustainable investment objective

This financial product promotes environmental or social characteristics, but does not have as its objective sustainable investment.

Environmental or social characteristics of the financial product

The Fund promotes environmental and social characteristics by:

Investing in companies related to the Blue Economy (defined in Schedule I of document “Pre-contractual disclosures related to sustainability” mentioned in the beginning of the page);

Excluding from investment companies, based on a list of criteria (Schedule II of document “Pre-contractual disclosures related to sustainability” mentioned in the beginning of the page), which includes, for example, business activities which do not adhere to the Paris alignment restrictions.

Investment strategy

The Fund shall invest in SMEs and Mid-Caps companies related to the Blue Economy (defined in Schedule I of document “Pre-contractual disclosures related to sustainability” mentioned in the beginning of the page), established in European Union (at least 85% of the investment in Portugal), and shall not invest in excluded companies based on a list of criteria (Schedule II of document “Pre-contractual disclosures related to sustainability” mentioned in the beginning of the page). The Fund shall execute its investment policy by investing in equity and hybrid (including quasi-equity) instruments of target companies, with the goal to benefit from the increase in their valuation. The Fund shall privilege the acquisition of representative stakes of the target companies’ equity, preferably representing between 40% and 60% of the its share capital, in order to have an active influence its strategic decisions and shall seek to exert significant influence in its management. Regarding the policy to assess good governance practices in the investee companies, prior to investment, the Due Dilligence process includes an assessment of the implemented governance practices, including for example:

Organizational structure and lines of management;
Composition of the Board of Directors;
Board of Directors processess (minutes, quality of information used in discussion, …);
Performance assessment and compensation;
External auditor.

In the negotiation process, Growth privilleges the presence of a representative in the Board of Directors of the investee companies, which allows to closely monitor the governance practices.

Proportion of investments

100% of the Fund’s investments (does not include deposits), meet the environmental and social characteristics promoted.

Monitoring of environmental or social characteristics, Methodologies, Data sources and processing and Limitations to methodologies and data

The attainment of the promoted environmental and social characteristics is measured primarily by the verification of wheter the investments made comply with the investment policy restrictions described before.