Information on the Target

Anaxago Capital has launched AxClimat I, the first fund sanctioned under the European Long-Term Investment Fund (ELTIF) 2.0 regulations. This innovative fund is designed to support the decarbonization of the European economy and requires a minimum investment of just €20,000, making it accessible to a broader range of investors. Classified as Article 9 under the Sustainable Finance Disclosure Regulation (SFDR), AxClimat I aims to achieve a measurable environmental impact while targeting a net internal rate of return (IRR) exceeding 12%.

The fund's investment strategies focus on three primary areas: industrial decarbonization, energy transition, and circular economy initiatives. Its initial investment occurred in February 2025 in the German Vidia Climate Fund I, which is centered on the electrification of industrial processes, plastic recycling, and the renovation of manufacturing sites. This strategic partnership enhances Anaxago's position in the growing field of sustainable finance in Europe.

Industry Overview in Europe

The private equity industry within Europe is poised for transformation following the introduction of the ELTIF 2.0 framework on January 10, 2024. This regulatory reform substantially expands access to private investment opportunities, previously available only to institutional or high-net-worth individuals. By removing the €10,000 minimum investment threshold, ELTIF 2.0 democratizes participation in private equity, catering to a much larger base of individual investors.

Furthermore, the revised regulations include harmonized rules that facilitate cross-border distribution of ELTIFs, thus enhancing the integration of the EU capital market. This new regulation is expected to foster greater liquidity and investment opportunities across member states, encouraging financial innovation and competition.

Another significant advantage of ELTIF 2.0 is the increased flexibility it provides fund managers. The minimum required allocation for illiquid assets within portfolios has been reduced from 70% to 55%, allowing for greater portfolio diversification. Additionally, the reform now permits fund-of-funds structures, which had previously been restricted, promoting more effective investment management.

New technical standards introduced by ELTIF 2.0 also aim to enhance investor protection and transparency regarding costs and liquidity management tools. These measures are designed to ensure that investors are well-informed and safeguarded in the evolving private equity landscape.

The Rationale Behind the Deal

The launch of AxClimat I aligns perfectly with the objectives of ELTIF 2.0 to broaden investment access and promote sustainable finance. As the global emphasis on sustainability and ecological responsibility grows, Anaxago Capital aims to position itself as a key player in financing the transition to a greener economy. By providing individual investors with the opportunity to support impactful projects through AxClimat I, Anaxago is not only contributing to environmental goals but also tapping into a burgeoning market demand for sustainable investment.

Information about the Investor

Anaxago Capital is a leading investment firm focused on connecting investors with innovative and sustainable projects. The company has built its reputation by identifying investment opportunities that leverage long-term trends in sustainability while providing promising returns. With extensive expertise in private equity and a commitment to responsible investing, Anaxago Capital is well-equipped to manage funds like AxClimat I, which are dedicated to addressing pressing environmental challenges.

The firm prides itself on its thorough approach to investment, conducting rigorous due diligence to ensure positive environmental and financial outcomes. Anaxago’s focus on sustainability reflects broader shifts in the investment landscape, where capital is increasingly directed toward ventures that prioritize ecological and social responsibility.

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In the context of evolving investment landscapes, AxClimat I represents a compelling opportunity for investors looking to engage with sustainable practices while still targeting robust financial returns. The combination of reduced entry barriers and a clear focus on contemporary issues such as decarbonization and energy transition positions this fund as an appealing option for those interested in aligning their portfolios with their values.

Moreover, with the backing of the ELTIF 2.0 framework, AxClimat I benefits from increased regulatory support aimed at enhancing investor confidence and transparency. These developments could not only attract more retail investors but also bolster the overall credibility of private equity investments in the sustainability sector.

However, potential investors should remain mindful of the inherent risks associated with private equity, particularly under a sustainable investment strategy. While the fund aims for a net IRR of over 12%, such projections can be influenced by market dynamics and execution risks, particularly in emerging sectors.

Overall, AxClimat I stands as a significant milestone for Anaxago Capital and the broader European private equity market. Its thoughtful integration of investor accessibility, sustainability objectives, and compliance with emerging regulatory standards indicates a promising investment opportunity that could resonate well with today's socially conscious investors.

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