A decarbonisation focus links most of the new and existing investors backing alternative superannuation fund Future Super in a $15 million Series C capital raise.
The preference shares raising values Future Super at $225 million.
CVC Emerging Companies Fund II’s investment increased by around 42% through the conversion of convertible notes into shares.
Future Super was founded in 2014 by chief executive Simon Sheikh, the former head of activist group GetUp!, and Adam Verwey, formerly of Australian Ethical (ASX: AEF). CVC ECF Fund II first invested in January 2022, alongside existing investors, in a raising primarily intended to fund the acquisition of another alternative superannuation fund SmartMonday.
Prior to the latest fundraising, Future Super’s existing investors also included GetUp! backer Simon Holmes à Court, a company associated with Wotif.com founder Graeme Wood, Daniel Almagor and Berry Liberman’s investment fund Small Giants, Australian Ethical founding director James Thier, early-stage venture capital firm Assembly Climate Capital and Fifth Estate Asset Management.
Earlier this year the Australian Securities and Investments Commission (ASIC) fined Future Super $13,000 over a 2019 Facebook post which the corporate watchdog found “may have been false or misleading”.
ASIC said posting “naysayers don’t join together and move nearly $400 million out of fossil fuels” exaggerated the fund’s positive environmental footprint because at the time Future Super only had $400 million in total funds under management. This had been built up progressively by members joining the fund.
According to CVC Emerging Companies, since Future Super acquired SmartMonday it has achieved rapid growth with funds under management and advice (FUMA) now exceeding $10.4 billion and superannuation members and insurance customers increasing to 280,000.
CVC Emerging Companies has adequate funding to make one or two more primary investments from its ECF Fund II and is expected to begin raising for a new late-stage growth through to IPO fund next year.