Generation Investment's $1B Fund Targets Industry-Wide Sustainability Transformation

Generation Investment Management has closed its Sustainable Private Equity Fund II, raising over $1 billion. The fund will target businesses that can improve sustainability across entire industries while driving growth. Its focus lies on platforms that shape how sectors operate, particularly in decarbonisation, digitisation, and waste reduction. SPEF II aims to back high-quality companies with the potential to transform sector-wide sustainability. Investors are particularly interested in businesses embedded in industry operating systems, scaling climate impact through existing workflows. The fund’s strategy centres on the infrastructure behind major sectors, including software, data systems, and distribution networks.

So far, the fund has made three investments. Octopus Energy, a global energy business and the UK’s leading supplier, operates in over 25 countries. Kraken Technologies provides infrastructure to optimise energy use, cut customer service costs, and support greener energy systems, serving over 70 million accounts worldwide. IFS, an enterprise software company for asset-heavy sectors, could reduce about 2% of global carbon emissions if widely adopted. The fund’s approach highlights the role of sustainability platforms in reshaping industries. By backing companies like Octopus Energy, Kraken Technologies, and IFS, it seeks to drive both financial returns and measurable environmental impact. The investments reflect a growing trend towards scalable, system-level solutions in private markets.