Formation and investment in "Circular Economy/Nature Positive No. 1" fund
Sumitomo Mitsui Trust Bank has announced that its subsidiary, Sumitomo Mitsui Trust Investment, has formed the Circular Economy/Nature Positive No. 1 Investment Limited Partnership jointly with SBI Shinsei Corporate Investment, and commenced investment activities. Sumitomo Mitsui Trust Bank has also announced that it has made an LP investment in the Fund. The Fund will seek to raise LP investments from parties sympathetic to this initiative toward a target total operating amount of approximately 10 billion yen.
The Fund will invest in domestic startups in the fields of Circular Economy (CE), Nature Positive (NP), and Climate Tech. As the importance of CE and NP increases both domestically and internationally in response to resource depletion, biodiversity loss, and climate change, Sumitomo Mitsui Trust Bank believes there are significant opportunities for startups to emerge and grow, as the realization of CE and NP requires technological innovation in areas such as DX and manufacturing technologies, as well as business model transformation.
The Sumitomo Mitsui Trust Group aims to contribute to the realization of a prosperous life through the construction of circular systems and nature-based transformation by operating this Fund jointly with the SBI Group and actively supporting the invested companies while collaborating with corporations and local communities.
The Sumitomo Mitsui Trust Group has defined its purpose as "Creating the Future with Trust," placing "the simultaneous pursuit of social value and economic value creation" at the core of its management, and aims to realize a "positive cycle of funds, assets, and capital."
The Sumitomo Mitsui Trust Group will leverage the network of stakeholders obtained through diverse and broad initiatives it has been promoting toward the realization of CE and NP (inter-corporate collaboration in the relevant fields, construction of regional circulation models with local governments, participation in university co-creation programs, etc.), as well as the technical knowledge of its technology-based finance team centered on former engineers, to support the growth of the Fund's portfolio companies.
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