The Dutch pension fund PME has committed €40m to an investment fund that invests in private companies with a circular business model, bringing its total allocation in this area to over €200m.

PME recently invested the €40m in the Idun II fund offered by Norwegian private equity firm, Verdane.

Verdane invests in, among others, the company NORNORM, which uses a subscription model for the rental of office furniture, and asGoodasNew, which focuses on the reuse and upgrading of second-hand electronics.

It has previously invested the equivalent of around €170m (USD 190m) in three funds offered by ARA Partners, which also invest in circular companies.

With this additional investment, PME's total assets invested in impact investments amount to over €2.5bn. This generates returns in innovative technology, within the energy transition, affordable housing, circular economy and healthcare.

Commenting, executive director of asset manager, Marcel Andringa, said: “This investment ensures that innovative young companies are given the opportunity to develop and make an impact within the circular economy.

“This is expected to be good for returns, but also for the climate, environment and biodiversity. The more we reuse, the lower the emissions and the more independent we are of other countries for our raw materials. A win-win-win investment.”

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