Growth Capital Private Equity Investing
Cachet Sustainability Inc. is a growth capital private equity firm. From our headquarters in Montréal, we make impact investments in scaling commercializations of sustainable development technology companies in the U.S. and Canada solving challenges at the climate change nexus with energy, food & water.
Our Core Values: Sustainability & Climate Change
Sustainability has an increasingly important impact on investment returns. Companies today have a duty to improve the socio-environmental context in which we invest to produce profit. Cachet’s core values include to protect and enhance value, while at the same time addressing both the societal and environmental challenges of our time. In our view, climate change is fundamental to sustainability today.
“Changes in climate policies, new technologies, and growing physical risks will prompt reassessments of the values of virtually every financial asset. Firms that align their business models to the transition to a net-zero world will be rewarded handsomely. Those that fail to adapt will cease to exist. The longer meaningful adjustment is delayed, the greater the disruption will be.”
– Mark Carney
Governor, Bank of England
Cachet Sustainability Inc. is an impact investing growth capital private equity (PE) company establishing the Cachet Sustainability Fund as a Limited Partnership to invest growth capital PE in scaling commercializations of sustainable development technology companies at the climate change nexus with energy, food & water.
Our vision is to participate in the world striving to attain the goal of net-zero GHG emissions by 2050 to create a vibrant and dynamic new economy for investors as well as a more resilient and sustainable world.
As former U.S. Vice-President Al Gore has stated:
“We are in the early stages of a global Sustainability Revolution that has the magnitude of the Industrial Revolution and the speed of the Digital Revolution.”
The investment opportunities of climate change and this sustainability revolution are juxtaposed with Milton Friedman’s view that business has one and only one social responsibility: “to use its resources and engage in activities designed to increase its profits so long as it stays within the rules of the game.”
The rules of the game have fundamentally changed since Milton Friedman’s days. As Blackrock CEO Larry Fink states, “Simply managing for short-term shareholder profit is not an acceptable management strategy. Society is demanding that companies, both public and private, serve a social purpose. To prosper over time, every company must not only deliver financial performance but also show how it makes a positive contribution to society. Companies must benefit all of their stakeholders, including shareholders, employees, customers, and the communities in which they operate”.
By selecting sustainability as our theme for Impact Investing, we protect and enhance value while addressing societal and environmental challenges in delivering superior financial returns. Impact investments distinguish themselves from other forms of sustainable investing mainly by their intention to achieve a positive social or environmental impact while committing to measure and report on the impact or outcome of the investments. They are intentional, measurable and profitable.
We invest in the transition from fossil fuels to renewable energy by investing in scaling commercializations of disruptive technologies and solving societal challenges by ensuring the secure sustainable supply of energy, food and water.
We address the challenges and investment opportunities of climate change through the Cachet Sustainability Fund.
Our Investment Beliefs
We believe companies today have a duty to improve the socio-economic context in which we live and to produce profit. As a result, companies must consider traditional financial criteria as well as ESG metrics in seeking profits. We are committed to using “Best-in-Class” ESG standards in assessing, managing and monitoring ESG procedures.
We also believe that addressing the sustainability challenges at the climate change nexus with energy, food and water is critical to globally transitioning to the low-carbon, resource efficient and inclusive economy envisioned in the 2015 Paris Agreement and the U.N. Sustainable Development Goals.
Achieving net-zero GHG emissions will require rapid re-thinking of how we do many things today to overcome our innate aversion to change and demonstrate that investors can “do well by doing good” by investing in scaling the commercialization of innovative technology companies.
We believe the best technologies to reduce GHG emissions come from small companies with the following common traits:
- A strong management team with diverse skills that can amicably resolve differences
- Pragmatic engineering and the ability to look at old problems new ways
- Small efficient scale, reducing capital requirements and operating costs
- The opportunity to “design once and build many” in multiple locations.
Our Investment Focus
Our Investment Process
As a company of climate-conscious, entrepreneurial and experienced lawyers, accountants, institutional investment management professionals, and even PhDs, Cachet operates as a team uniquely capable of operating as two divisions:
Growth Capital PE Investments
The industry/sector focus is on investments in companies with sustainable development technologies in renewable energy, transportation systems, buildings systems, manufacturing, agriculture and the water sector.
Institutional Investments Innovation
This Cachet division enables Canada’s pension funds, banks, and life insurance companies to invest in sustainable development technologies.
Meet Our Team
Cachet’s current and future management is comprised of a small, integrated team of highly talented, creative and experienced finance professionals with BA, MBA, LL.B. and Ph.D. degrees as well as CA and CFA designations complemented by experienced executives with decades of experience establishing, operating and growing public and private companies with disruptive technologies in Canada and the U.S. as well as globally.