Verdane, the European growth investment firm known for its pioneering sustainability-focused approach, has successfully closed its Idun II fund at a €700 million hard cap. This fund, which exceeds the €300 million raised by its predecessor, Idun I, is set to fuel investments aimed at decarbonising the economy. Verdane has consistently supported sustainable businesses since its inception, having backed 42 companies in the sector since 2003.

Investment Focus on Energy Transition and Resource Efficiency

Idun II marks a significant step forward in Verdane’s mission to back businesses that contribute to a sustainable future. The fund will primarily focus on energy transition and resource efficiency, two critical areas in the fight against climate change. As an “Article 9” fund under the European Union’s Sustainable Finance Disclosure Regulation, Idun II ensures that its investments adhere to strict sustainability criteria, with a minimum target of avoiding 5,000 tonnes of CO2 per €1 million invested.

The fund will target companies that align with these sustainability goals, investing between €20 million and €100 million in growth-stage businesses that demonstrate clear decarbonisation potential. This includes companies innovating in sectors like clean energy, circular economy, and sustainable resource management. The sustainability standards are reinforced by Verdane’s proprietary "2040 test," designed to assess whether a company is positioned for success in a future low-carbon economy.

Strong Investor Backing and Global Reach

Idun II has secured backing from a diverse group of investors, including leading European and global institutions. Notable contributors include Nysnø Climate Investments, Norway’s state-backed climate investment fund, Banque de Luxembourg, and the European Investment Fund. In total, investors from 13 countries, including 29% from the United States, have committed to the fund. This diverse investor base highlights the global recognition of Verdane’s strategy and the growing appetite for sustainable investment opportunities.

The fund was fully allocated within just five months, underscoring the strong demand for decarbonisation-focused growth capital. Verdane’s international presence is reflected in its broad LP base, with institutions such as university endowments, pension funds, family offices, and foundations joining forces to support the fund.

Verdane’s Growing Portfolio of Sustainable Businesses

The Idun II fund will join Verdane’s long-standing commitment to supporting European companies that drive both digitalisation and decarbonisation. The firm has a proven track record, having backed 16 businesses in the past 12 months alone, investing more than €600 million in companies that address key structural growth trends. Verdane’s portfolio includes innovative companies such as NORNORM, which provides sustainable office furniture through a subscription model, and Scanbio, a leader in fish protein concentrate production focused on upcycling waste materials.

With over €8 billion in assets under management, Verdane continues to expand its portfolio across a range of sectors, but with a particular emphasis on sustainable growth. The firm’s approach combines financial returns with measurable environmental impact, allowing investors to track their investments' contribution to a greener future.

Operational Support for Portfolio Companies

One of the key differentiators of Verdane’s approach is the robust operational support it provides to its portfolio companies. Through its Elevate team, a group of 35 in-house experts, Verdane offers strategic assistance in areas such as market expansion, product development, talent acquisition, finance, and sustainability. This hands-on approach allows the firm to play an active role in helping its companies scale while maintaining a strong focus on their sustainability objectives.

Verdane’s dedicated team of over 150 professionals, based in core European markets such as Berlin, Munich, Copenhagen, and London, ensures that its investments are well-positioned for success. The firm’s deep sector expertise and network of over 600 C-suite executives further enhance its ability to support the growth of portfolio companies.

Verdane’s Commitment to Sustainability and Growth

As a UN PRI signatory and a certified B Corporation, Verdane’s commitment to sustainability goes beyond its investment approach. The firm only invests in companies that pass its rigorous 2040 test, ensuring that these businesses can thrive in a future low-carbon economy. Furthermore, the Verdane Foundation, which is managed by the group, supports sustainability and inclusion initiatives globally.

Verdane’s founder and managing partner, Bjarne Kveim Lie, highlighted the importance of the Idun II fund in the context of the global push for decarbonisation. He emphasized that the goal of the fund is not only to generate strong financial returns but also to make a significant contribution to the transition to a sustainable economy. Lie noted that the decarbonisation trend is a "generational megatrend," and Verdane aims to be the growth partner of choice for companies that are positioned to lead in this space.

The closing of Idun II at €700 million marks a pivotal moment for Verdane and the sustainable investment community. With a strong portfolio of businesses focused on decarbonisation and a growing base of international investors, Verdane is poised to continue its leadership role in supporting the transition to a more sustainable economy. The firm’s combination of financial expertise, operational support, and commitment to environmental impact positions it as a key player in the future of sustainable growth. As the world seeks to address climate change, funds like Idun II are crucial in directing capital to businesses that can drive meaningful change.