Ultra-wealthy investors are directing huge sums of money into green investments. They have been joining a little known nonprofit group dedicated to speeding up the flow of capital into investments that can slow global warming.
The club works with about 200 rich families, who pay a 'very reasonable' flat fee to join. They must commit to making their first investment in climate and sustainability within six months, according to director, Régine Clément. Those interested in joining Creo must have assets of at least $100 million, and pass a board approval process.
Creo's members include investor Jeremy Grantham and Nat Simmons - the son of Renaissance Technologies' billionaire founder James Simmons, and other well-known billionaires, whose names Creo won’t disclose. "This is not philanthropy, this is investment," said Clément, adding "We grow entirely through introductions. We never seek out a family."
Creo currently has over $800 billion under management, and acts as a mini investment bank. It investigates about 300 deals per year - connecting member investors with potential partners. And researching technologies for future investments. Creo makes no fees on any deals. The ultra-wealthy families don't pitch deals to each other.
"Members have invested in everything from batteries and hydrogen fuel to regenerative farmland and greener product packaging. Portfolios include still unproven technologies such as methods for carbon capture and true long shots like fusion reactors."
Super wealthy families can afford to wait a decade or more for these green investments to pay off. Some members in Europe have been rich for hundreds of years.
In four years, the nonprofit's membership has grown by 400%, and affiliates' assets have risen eight fold - starting with less than $100 billion in 2016.
One family participating in the fund is France's Mulliez family - which owns a global retail empire worth over $38 billion. Family members decided they wanted to 'take climate change more seriously' when it came to their investment portfolio, so they directed their managing director at the Mulliez family office (which invests around $236 million per year) to explore options.
The Mulliez family owns a giant supermarket chain, Auchan -- France's answer to Walmart. The Mulliez family office led a fundraising round for Hungry Harvest this year, a startup that sends consumers weekly boxes of produce.
Creo was originally an informal gathering for like-minded families in 2016. Some of Creo's investments have paid off big, such as Beyond Meat, Tesla, and battery tech company QuantumScape, which was recently valued at $3.3 billion.