An investment strategy calibrated to generate a substantial impact while enabling the implementation of best-in-class technologies by textile manufacturers.
GFF will provide loans to investees and they should result at least in 50% reduction of one of the 3 relevant Goods (Materials, Energy and Water).
Target countries: key target countries for manufacturing companies are India, Bangladesh, Vietnam. 20% room for other countries in Asia.
Products: We offer risk tolerant debt financing for investments into green, sustainable and circular technologies in the apparel manufacturing industry.
Investment Amount: Our investments range between $ 1 – 5m, with the possibility to syndicate larger deals.
Example technologies: (1) Chemical recycling (2) Nano- tech based finishing & dyeing (3) CMT automation (4) Plant-based fibers (5) Effluent treatment plants.
Strong deal flow: we have a strong pipeline with the first investment expected in Q2 2020, FOUNT, the Fund Manager, has a local presence in Bangladesh and extensive local networks in India and Vietnam. Also, Fashion For Good technology innovators provide a steady stream of potential transactions.
We look specifically for innovations that fall under one or multiple of the following focus areas:
Dyeing & Finishing: New methods, technologies and chemicals for the more sustainable treatment of textiles, towards low water use and zero discharge of hazardous chemicals.
Manufacturing: Cutting edge garment manufacturing technologies & supply chain processes (e.g. 3D printing).
End-of-Use: Techniques including chemical and mechanical methods for circular recycling of finished post-consumer goods.
Laudes Foundation (previously C&A foundation) is an anchor investor alongside The Mills Fabrica, with an initial ‘close’ in September 2019 of USD 12.4 million junior equity capital. With Rabobank as senior debt investor, the Fund’s size is currently around USD 19m, the target size is USD 60m.
The capital structure of the Good Fashion Fund is a so-called blended finance structure comprising 3 different risk/return layers: Junior Equity /first loss, Senior Equity (preferred return of 2%) and a Senior Debt tranche. The fund has a 2/1 equity to debt ratio. The GFF term is 10 years.