Investment Approach

Investment Evaluation

 

Investments are rigorously screened to demonstrate Compassion, Impact, and Analytical resilience in line with the UN Sustainable Development Goals (SDG).

Deals must meet management, operational and financial hurdles as well as ESG criteria as defined through industry-accepted metrics or external accreditation. Hypatia ESG accreditation issued for deals that deliver a basket of SDGs.  Collaboration with leaders in climate action, diversity, and governance are some of the strategic partnerships we work with. Deal viability assessed through downside risk management and governance structure.

Board Involvement

 

Minimal direct board involvement unless needed (achieved through collaboration with partners). Focusing largely on resilient investments through rigorous screening Partners:

Focus on low middle-market deals and project financing.

Partner with larger PE firms for transactions > 10% of deal funding round.

Deal Sourcing

 

Deals primarily through Hypatia’s ecosystem of strategic partners in the sector and through extensive relationships from our network.

Portfolio Construction

 

Individual investment size $1-5m and upwards (no more than 10% of deal funding per round).  The Portfolio has a target size of <40 individual deals. This ensures impact, diversification, and manageability. 

 

We aim for a balanced portfolio with value levers on devices: content ratio, short vs long discounted payback projects, and macro/industry drivers all indicating areas of future value.  ESG criteria in line with SDGs are implemented with rigorous analysis and scaled on a traffic light system.  ‘Green’ deals are incorporated in the ATF portfolio, ‘amber’ deals remain on a watch list and are offered to LPs as look-through with complementary analysis.  ‘Red’ deals are outside of scope.

Exit Strategies

 

We analyze the viability of potential exit strategies during the investment evaluation process.  Continuous evaluation of exit opportunities and market conditions is carried out to ensure return objectives are optimized.

Deal Types

Series A and B round funding, growth capital, project financing.

Actively engaging network to seek early-stage proprietary investment opportunities.