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. The target fund size is USD 60m with a first close of USD 30m.
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. We are in final negotiations for the Senior Debt capital and are now looking to raise additional Equity. The GFF term is 10 years.