Innovative “grey to green” private equity fund Argos Climate Action closes oversubscribed fundraising, demonstrating the relevance of its decarbonisation strategy for European mid-sized businesses.

In the midst of growing eco-pessimism, this success shows that concrete climate action meets investors’ expectations:

• With 337 M€ raised, the fund is oversubscribed by over 12% vs. the initial target.
  
  

• This success underscores investors’ strong interest in financing the concrete decarbonisation of the European economy as a way of generating competitive advantages.
  
  

• Argos Climate Action has already completed three investments within a year, in three different countries and sectors.
  
  

• These achievements demonstrate the shared conviction among investors and entrepreneurs that economic performance and environmental impact go hand in hand.

Argos, an independent European investment fund, is proud to announce the final close of its Argos Climate Action fund, which has raised €337 million. This amount surpasses the initial target by over 12%, a remarkable achievement despite the challenging fundraising environment[1].

This first of its kind transition buyout strategy is based on acquiring selected companies where Argos identifies both attractive financial prospects and an opportunity to create additional value by engaging the business into an accelerated and measurable decarbonisation. Indeed, the fund aims to achieve a CO2 intensity reduction of at least 7.5% per year for the companies it supports.

Through its proprietary tools, Argos has identified a wide array of industries where, simultaneously:

• market traction for decarbonised products and services[2] provides a growing competitive advantage to the greenest suppliers;
• and a panel of affordable decarbonisation levers are available, making a steep decarbonisation feasible within just a few years.
  
  

This success demonstrates investors’ strong interest in financing the decarbonisation of the economy through concrete actions on existing companies. Furthermore, the first three investments completed by Argos within its first year of existence, in companies from three different countries and sectors, prove the needs and potential of “grey-to-green” transitioning of European mid-sized businesses.

“The success of our Argos Climate Action strategy is a sign that decarbonising the economy makes sense: an oversubscribed fund, a market depth confirmed by our first investments, and tangible initial results in terms of carbon intensity reduction[3]. The unprecedented and intense journey based on a fresh vision, which has driven this fund, has united diverse skills and profiles around a common goal and led to thousands of hours of research. The trust of our investors also highlights the strength of Argos as an independent pan-European private equity platform, capable of innovating and generating lasting impact,” said Louis Godron, President of Argos.

A pioneering strategy that attracts a wide range of investors

The innovative approach of Argos Climate Action has drawn significant interest from a broad spectrum of investors, including institutional investors, sovereign funds, funds of funds, and over a dozen family offices. The majority of them are first-time investors in an Argos fund.

Investors’ confidence in the Argos Climate Action investment thesis stems from its ability to align decarbonisation with financial performance, transforming European SMEs into decarbonised leaders in their industry. This trust is bolstered by a robust methodology and measurable and auditable outcomes, ensuring the effectiveness of the approach.

An active first year, revealing strong market potential

The market depth of Argos Climate Action is evidenced by the variety of its initial investments. In just one year, the fund has made three investments across three distinct sectors and countries:

• Bracchi – December 2023 – an Italian leading transport and logistics company.
• Groupe Routin – September 2024 – a French manufacturer of premium syrups and beverage ingredients for creative drinks.
• Lavatio – December 2024 – a leading German B2B textile rental and laundry service provider.
  
  

This diversity illustrates the wide range of opportunities accessible to Argos Climate Action. The fund’s team assesses more than 15 new opportunities per month on average, a sign of the growing interest of European SMEs in enhancing their competitiveness through decarbonisation.

A unique team and ecosystem

The Argos Climate Action team combines complementary skills, bringing together expertise in private equity, business transformation, and environmental transition. This synergy enables the fund to address decarbonisation challenges with a comprehensive approach, blending financial rigour with strategic vision.

Additionally, Argos Climate Action has built a strong ecosystem of partners, including sector experts, sustainability consultants and academic institutions. This network plays a critical role in identifying and deploying practical solutions to support companies in their environmental transformation while generating a competitive advantage.

A strong platform

This success highlights the power of Argos, an independent pan-European private equity platform, which now offers two mid-market majority buyout strategies to its investors, with the common objective of creating long-term value and positive impact.