Green Gateway Fund 2 GmbH & Co KG (GGF2)


Last updated 12 May 2020, by Impactyield.

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Green Gateway Fund II makes growth stage investments in small and medium sized businesses in Europe that offer products and services that reduce carbon emissions and other waste through greater resource efficiency or a switch to renewable power.

The Fund’s Manager, Wermuth Investment Management GmbH, supports Portfolio Companies in selling to high growth and high impact markets globally. These markets can either be in sectors expected to grow significantly in the “new green industrial revolution”, or in regions with significant catch-up potential, such as those with energy consumption per unit of GDP several times higher than, say, in Germany.

The fund typically makes investments in companies with more than €10m of revenues with The Fund’s unique selling point is its investment team’s proven ability to support Portfolio Companies in selling goods and services into growth markets at home and globally. Such growth markets are often new and need to be co-created pro-actively in cooperation with other industry players and government. To grow in high impact, high growth, high profit but also high risk regions with significant catch-up potential, such as emerging markets, requires international experience and detailed attention to risks. Both require a team with dependable relationships of trust built on a track record of working globally not just for profits but also with a positive impact for society and the planet in mind, which are difficult to replicate quickly.

Financial description

The Green Gateway Fund 2 offers an attractive risk return profile: a target net IRR > 20% pa and multiples > 2x net cash-on-cash, as well a positive impact on the environment and sustainable development.
More money for value: Up to 25% more investments due to recycling, for same amount of fees.
Given the Fund’s strategic focus on resource efficiency, the Manager sees only limited and often no conflict between the financial return and the environmental impact targets of GGF2: The more resource efficient a Portfolio Company’s products or services and the stronger its sales, the greater its clients’ and probably the Portfolio Company’s own profits and its environmental impact. The Carry Vehicle thus has accepted that its Carried Interest is not just a function of meeting a financial Hurdle, but also of meeting an aggregate Impact Hurdle on a whole fund basis based on Impact Hurdles set out for each Portfolio Company. Actual performance will be measured against these hurdles.
The Impact Hurdle has been carefully structured to ensure potential conflicts of interest between achieving financial returns and meeting the Impact Hurdle are limited. Rather, it makes it absolutely clear that while the Fund is a “finance first” impact investor, rather than an “impact first” impact investor who may want to be paid on the basis of achieving “Impact Targets”, it is without doubt an impact investor. No investment can be undertaken that will not have a positive environmental impact.

7 years

of track record


the year funded

250,000,000 EUR


Asset manager

Wermuth Asset Management


Headquarters location:

Other funds managed by this asset manager: Green Gateway Fund (GGF)

SDG goals

SDG targets

Expand and upgrade energy services for developing countries

Key performance indicators

Fund overview

Asset manager: Wermuth Asset Management

Product track record: Fund has 7 years of track record

Target IRR: 20%

Committed Capital: 11,000,000 EUR (Euro)

Target return category: Risk-adjusted market-rate of return

Fund domicile:

Product status:


Inception year: 2016

Vintage year: 2017

Target region: ,

Target close date: 01/03/2018

Product term: 10 years (6-year investment period + 4-year wind-down period) (+2 yearly extensions)

Assets under management: 250,000,000 EUR (Euro)

Investment size: Min: 5,000,000; Max: 30,000,000; Avg: 15,000,000

Co-investment policy:

Currency of investments:

Currency for fund / product figures:

Fund investments to date: 0

Fund investments to date exited or repaid: 0

Management fee: 2%

Carried interest: 20%

Hurdle rate: 25% of Commitment (plus Impact Hurdle)%

GIIN Investors' Council Investment: No

Limited Partners / Investors: PYMWYMIC (the Put Your Money Where Your Meaning Is Community from the Netherlands); an institutional investor

Limited Partner / Investor Type: Development Finance Institution (DFI), Endowments/Foundations, Family Office, Pension Funds, Other Institutional Investors


E-mail: n.a.


Phone number: +49 30 278 909 216

If you wish to have your details removed from this database please email

Ella Lagé

Client Services

Jochen Wermuth

Founder and Chief Investment Officer

Michael Ludwig

CEO, Senior Fund Partner

Impact Performance


Impact thesis

The GGF2 aims to address, in a profitable fashion, global trends such as the world’s population growth towards 8 billion- 9 billion people. According to Reuters the world’s middle class may increase from 1 billion-2 billion to 4.9 billion people by 203016. This will lead accelerate urbanisation, the depletion of natural resources and the threats of climate change and increased pollution. Furthermore, GGF2 seeks to contribute to the move away from today’s unsustainable linear (take-consume-dispose) fossil-fuel powered economy, towards a waste-free “circular” or “upcycle” economy.
No investment is made unless GGF2 expects it to have a substantial impact on the environment. This may be either through the successful growth and activities of Portfolio Companies during the Holding Period or in the future if a Portfolio Company is being prepared for global growth. Their activities are expected to reduce CO2 emissions and other waste through greater resource efficiency or a switch to renewable power; it is also regarded as a positive impact if they improve the quality of land, water, air et al.
A relatively new and distinguishing feature of the legal structure is the “Impact Hurdle”, whereby Carried Interest shall also be a function of the environmental impact achieved by the Fund (i.e., Carry is paid when at least 60% of the aggregated Impact Hurdles are met, and Full Carried Interest is due only after 80% of the aggregated Impact Hurdles are met).

Impact Management


Financial benchmark

Term Description:


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