Capital Dynamics is planning to launch a new fund of funds for German and Swiss institutional investors that will focus on high growth sectors and sustainable development investments with strong environmental, social and governance (ESG) principles.
The firm intends to launch the strategy in mid-2016 and will target primary, secondaries and co-investment strategies, according to a statement. The fund will have a global focus and invest in small and mid-cap buyout and growth equity funds.
“The product intends to focus on strong operational value creation and exposure to above average growth areas that are supported by long-term macro trends,” Mauro Pfister, senior director and head of solutions, said. “We see responsible investing as a future value driver and a way to manage risks.”
German and Swiss institutional investors are increasingly looking for private equity products that can help them achieve their performance objectives amid the low interest rate environment, said Klaus Gierling, managing director in business development.
The target size of the fund was not disclosed and a spokeswoman for the firm declined to comment further.
Other investment criteria that will guide Capital Dynamics’ manager selection are long-term growth potential such as technological advancements, population trends and resource management; research and innovation to support new products and services and/or expansion into new markets; employment growth and tangible returns through operational value creation.
The firm is currently in market with Capital Dynamics Global Secondaries IV, its latest dedicated secondaries fund, and had raised $377.6 million as of early April, surpassing its $350 million target.