Investment opportunities in the environmental sector are set to grow strongly despite the financial crisis and possibility of a recession, according to Impax chief executive Ian Simm.
"You have a set of uncorrelated growth drivers, for example, a lack of water and excess waste, and there are opportunities to extract value," Simm said.
"If you put the drivers together you lay the framework for a compelling set of investment opportunities."
On the back of these opportunities Impax is launching the Impax Environmental Markets Trust to the Australian market.
While it is open to both retail and institutional investors, Simm said it has been deliberately structured around what institutional investors were looking for.
The Impax strategy is biased towards small companies, with good growth potential over the next five years.
The fund has a portfolio of 60-80 listed companies with a focus on waste, water and energy.
"This is a big opportunity for mainstream investors... we have a defined space in a broad number of sectors, which allows for a diversified portfolio," Simm said.
BNP Paribas holds a 29.4 per cent stake in Impax and will be responsible for distributing the product, due for launch toward the end of 2008.
Impax has 14 years experience in the environmental sector and over $2.5 billion under management in private equity, environmental degradation and long only funds.
