Alternatives investment manager Salter Brothers has partnered with mid-market private equity impact investment firm Kilara Capital to set up an investment platform focused on decarbonisation.
KSB Sustainable Investments is currently seeking commitments for its first investment vehicle, the KSB Transition Fund. Salter Brothers says the private equity vehicle, which is open to wholesale investors, will capitalise on one of the most urgent and investable opportunities of our time, the decarbonisation of the physical economy.
Announcing the strategic partnership on 30 October, Salter Brothers said it would align Salter Brothers’ global expertise in alternative assets with Kilara’s climate investment capabilities and strong track record in delivering commercial returns alongside meaningful decarbonisation outcomes.
KSB will focus on three core business lines, private equity, energy infrastructure and nature solutions.
Kilara Capital was founded by Ben Krasnostein in 2018 as an impact investment firm that would generate financial returns for its investors alongside achieving decarbonisation outcomes. Kilara makes private equity investments that support the decarbonisation efforts of small and medium size enterprises (SMEs).
Salter Brothers said KSB will be launching further strategies in energy infrastructure, focused on battery energy storage systems (BESS), a sector in which seed opportunities have already been secured, and nature solutions, focused on carbon sequestration and related strategies.
Salter Brothers managing director Paul Salter said: “This is a pivotal evolution of our business aligning with the growing global demands towards sustainability and positioning us as the forefront of climate-aligned investing. Partnering with Kilara, an established sustainable investor, will allow us to unlock significant opportunities for our investors.”
Krasnostein, Kilara’s managing partner, said: “We are at an inflection point in the market and the transition to a low-carbon economy is no longer optional. Partnering with Salter Brothers will enable us to offer investors real benefits if they are seeking sustainable investment options.”
Salter Brothers’ co-head of capital partnerships and director, funds management, Yossi Kraemer said: “We look forward to accessing Kilara’s expertise and dedicated climate investment platform. Many of our investors are seeking tangible and measurable decarbonisation investment outcomes and we are excited to be able to do this.”
Salter Brothers was founded in Melbourne in 2014 by Paul and Robert Salter as a hotels investment business. Since then, it has grown to invest more widely in property, including residential real estate and social infrastructure; in equities, small-cap listed investing and private equity; and private credit, commercial real estate and corporate lending.
The firm has offices in Singapore, Japan and the US as well as in Melbourne and Sydney and has total assets under management of over $4.5 billion. Salter Brothers remains best known for its investments in the hospitality sector in which it manages more than 40 hotels (representing more than 6,500 rooms).
Kilara’s investments in decarbonisation include stakes in electricity charging infrastructure company JET Charge, e-waste recycler Sircel, domestic electricity pricing optimiser Amber Electric, real time electrical systems monitoring platform Wattwatchers and seaweed-based resins company Loliware.
Image: JET Charge charging infrastructure.