(Bloomberg) -- Virginie Morgon, Eurazeo SE’s ex-chief executive officer and one of the most senior women in European private equity, is striking out on her own with a new private equity firm focused on sustainable investments.
Morgon’s Ardabelle Capital plans to raise €500 million ($554 million) next year to launch a investment fund with a climate strategy, she said. It’s looking at doing deals in Europe, US and Canada.
“Climate buyout is the missing middle in the private equity market,” Morgon said in an interview. More players are needed to help medium-sized companies accelerate their “transition and align their operations to an overall net zero.”
Ardabelle Capital will invest in profitable mid-market companies in the consumer-goods value chain — including sustainable ingredients and packaging — as well as waste management, recycling and water system efficiency, Morgon said.
The transatlantic firm will have people based in both New York and Europe. Among the founding partners are ex-Danone executive Bertrand Austruy and Julien Gattoni, the former chief financial officer of the World Economic Forum. They are joined by Noemie Flammarion, who was previously with Suez, and Cara Kennedy-Cuomo.
Morgon, a former Lazard Ltd. investment banker, left Eurazeo last year after some shareholders pushed for her removal amid a power struggle triggered by the death of its founder. She had joined Eurazeo in 2008 and became CEO in 2018.
For her new firm, Morgon is counting on increased investor interest for green assets, despite a more challenging environment for private equity at large due to tougher fundraising conditions and a more fraught market for dealmaking.
“The interest rate environment is more stable now than it has been for years, and LPs are responding really positive to thematic funds,” she said. “It’s a massive investment opportunity, especially in the climate and sustainable space.”
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