Emergence selects Gay-Lussac Green Impact as it makes its first impact fund investment

Paris, 18 October 2021 – Emergence and its investment manager NewAlpha Asset Management are delighted to announce that the second investment of the Emergence Europe (1) sub-fund will be made in the Gay-Lussac Green Impact fund (2) managed by Gay-Lussac Gestion (3).

Gay-Lussac Green Impact is a fund that invests in European listed equities. It covers all capitalisation sizes. The companies selected must contribute positively to the fight against global warming and demonstrate progress towards sustainable and responsible growth. Four themes are therefore favoured when analysing these companies: sustainable innovation, energy efficiency, the circular economy and the energy transition.

A unique investment process is followed in which a defensive strategy is applied, based on the structured construction of a low-volatility portfolio with little correlation to market movements. This portfolio consists of around 50 stocks identified for their solid financial and qualitative fundamentals and their committed Environmental, Social and Governance (ESG) approach. The fund’s objective is to outperform its benchmark index, the Stoxx Europe 600 Total Return, over a minimum investment horizon of five years.

The environmental impact of the portfolio companies is assessed on the basis of their carbon footprint, their alignment with the objectives of the Paris Climate Agreement, their alignment with the European taxonomy and their percentage of decarbonised energy.

With the contribution from Emergence, Gay-Lussac Green Impact had €85 million in assets under management (AUM) as of 1st October 2021.

Gay-Lussac Gestion was created by the management buyout in January 2021 of Raymond James Asset Management International, a French subsidiary of Raymond James Financial Group. Now an independent entity, it does business in three areas of expertise: fund management, private banking and company savings. The company managed €1.6 billion as of 30th September 2021, has 23 employees and serves a predominantly French client base consisting of private asset managers, insurance companies, pension funds, foundations and wealth management advisers.

Emmanuel Laussinotte, Chairman of Gay-Lussac Gestion said: “We are honoured to have been selected by Emergence, whose investment represents a tremendous opportunity for our asset management company, which although newly independent boasts a 25-year track record, to gain recognition among institutional investors. This allocation is also a recognition of the strong conviction underpinning our socially responsible investment approach. It will enable us to accelerate the development of Gay-Lussac Green Impact, so that the fund can exceed €100 million in AUM and reach new clients.”

“Gay-Lussac Gestion has acquired proven expertise in European small and mid-caps based on a structured investment process, which puts risk management at the heart of management decisions,” said Antoine Rolland, Chief Executive Officer of NewAlpha, adding that “the Gay-Lussac Green Impact fund offers an original strategy that rigorously combines quantitative, fundamental and extra-financial approaches. The fund, currently classified as Article 8 under SFDR, aims to quickly obtain an Article 9 classification in order to properly communicate its sustainable development objectives. In addition, three of the funds in the company’s range were awarded the Relance label in 2020, which should attract institutional interest in the company.”

“The second investment of the Emergence Europe sub-fund stands out with the selection of a management company that has recently become an independent French boutique, after a quarter of a century as part of a US financial group,” said Laurent Deborde, Chairman of Emergence. “We are also investing here in a fund that puts environmental impact at the heart of its strategy. This is important to us: Emergence wants to contribute to the development of entrepreneurial management companies that pursue active and innovative ESG policies.”

Gay-Lussac Gestion is the 23rd acceleration partnership concluded in nine years by Emergence through its four sub-funds, of which Emergence Europe is the most recent. As was the case for the previous investments made with French entrepreneurial asset management companies, the partnership between Emergence and Gay-Lussac Gestion offers Emergence Europe’s institutional investors access to the potential performance of the fund selected and the ability to be part of the fund’s growth through an income-sharing scheme.

With the launch of the Emergence Europe sub-fund, the total commitments of institutional investors since the creation of Emergence in 2012 now exceed the €1 billion mark. This figure highlights both Emergence’s attractiveness and the interest among the fund’s shareholders in growing entrepreneurial management in France.

 

(1) Launched on 28 February 2021, Emergence Europe is a specialised professional fund (FPS) that is closed to investors.
(2) Gay-Lussac Green Impact was launched on 3 June 2005 with ISIN code FR0010178665.
(3) Gay-Lussac Gestion, a simplified joint-stock company (SAS) with share capital of €391,200, registered with the Paris Trade and Companies Register under number 397 833 773, located at 45 avenue George V 75008 Paris, is authorised by the AMF under number GP 95-001 and registered with ORIAS as an Insurance Broker or Reinsurance Broker (COA) under number 12065055

 

ABOUT EMERGENCE
Emergence is the Paris financial centre’s leading acceleration fund. Its goal is to accelerate the most promising and innovative young entrepreneurial asset management companies based in or with locations in France and to entrust them with capital to manage, in order to support their growth and international development. Emergence invests for a period of at least four years in one of their chosen funds to help it grow to exceed €100 million in AUM and to remove institutional and regulatory constraints (investment ratios).

Since its creation in early 2012, the Emergence mutual fund has invested in 21 management companies to accelerate 23 funds via its four sub-funds whose delegated manager is NewAlpha Asset Management: Performance Absolue (€307 million), Actions I (€200 million), Actions II (€320 million) and Europe (€200 million4).

Emergence brings together 15 major institutional investors who work together as real acceleration partners for these high-potential entrepreneurial asset management companies. (EDF, Caisse des Dépôts, Aviva, Cardif, Macif, CNP Assurances, UMR, Neuflize Vie, Groupe des Assurances du Crédit Mutuel, MAIF, AG2R La Mondiale, Malakoff Humanis, Prepar-Vie Assurance, Orano and Matmut).
By launching Emergence, the French asset management industry, number-one in continental Europe by AUM (€4,355 billion at end-2020) and recognised for its expertise, its capacity for innovation and its entrepreneurial momentum, has equipped itself with an innovative model that associates institutional investors with a fund that will increase the appeal of the Paris financial centre among European competitors as a hub for asset management activities.

Emergence Europe is intended to invest in between five and ten European equity funds managed by entrepreneurial management companies based in the European Union. The selection of these funds takes into account the existence of ESG criteria in their investment processes.

 

ABOUT NEW ALPHA ASSET MANAGEMENT

New Alpha Asset Management is an asset management company specialised in finding, investing in and supporting fast growing entrepreneurial companies.

New Alpha Asset Managementprovides investment solutions via two types of activity – multi-management and private equity – for its French and international institutional investors.

Through its first business line, New Alpha Asset Management has been analysing, selecting and supporting innovative investment funds all over the world for 12 years, establishing more than 90 strategic investments and investing nearly €2.5 billion in asset management companies in France and abroad. New Alpha Asset Management has been the investment manager of the Emergence fund – the Paris financial centre’s leading acceleration fund for French entrepreneurial asset management companies – since 2012.

New Alpha Asset Management provides investment management and advisory services for €2.4 billion in assets as of 31 March 2021.

New Alpha Asset Management is a subsidiary of La Française and is subject to the regulations of the French Financial Markets Authority (AMF – Autorité des Marchés Financiers). La Française is operated by Caisse Fédérale du Credit Mutuel Nord Europe and is the asset management business line of CMNE Group, in addition to the latter’s Banking and Insurance business lines.

 

DISCLAIMER

This press release is intended for French professional investors only, within the meaning of the Markets in Financial Instruments Directive.

It is published jointly by New Alpha Asset Management, whose registered office is located at 128, boulevard Raspail, 75006 Paris, France, and the Emergence fund, whose registered office is located at 28 place de la Bourse, 75002 Paris, France.

The information contained herein shall not under any circumstances be interpreted as an offer or invitation to invest, investment advisory or a recommendation for specific investments. New Alpha Asset Management is a portfolio management company authorised by the AMF under number GP05000001 as of 20 January 2005.

References to prior rankings and awards are no guarantee of future rankings or awards. Depending on the date this document was drafted, the information herein may no longer be current.

Asset management company Gay-Lussac Gestion SAS with share capital of €391,200, registered with the Paris Trade and Companies Register under number 397 833 773, located at 45 avenue George V 75008 Paris, approved by the AMF under number GP 95-001 and registered with ORIAS as an Insurance or Reinsurance Broker (COA) under number 12065055. Further details are available on request or at www.gaylussacgestion.com.

Investors should be aware that investing involves the risk of total or partial loss of the capital invested.

Main associated risks: Equity risk and capital loss. Source of data figures: Gay-Lussac Gestion.

 

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