In recent years, sustainable investments have become increasingly popular among investors and financial institutions. Cowen Inc., the US-based independent investment bank and financial services firm, is emerging as a leader in this space through its Cowen Sustainable Investments (CSI) division. CSI focuses on ESG-driven investment strategies and has backed a number of high-profile sustainable companies. This article will explore CSI’s role in promoting ESG in the finance industry.
CSI’s large funding rounds reflect strong ESG interest
Cowen Sustainable Investments has participated in several major funding rounds for sustainable companies over the past couple of years. In June 2022, CSI led a $70 million Series D round for Bevi, a US-based maker of smart water coolers with sustainability features. CSI also joined Project Canary’s $111 million Series C round in March 2022. Project Canary is a climate tech startup providing emissions monitoring solutions. These large funding amounts illustrate investors’ growing appetite for businesses with solid ESG credentials.
Backing diverse sectors shows breadth of ESG approach
In addition to size, the diversity of CSI’s investments demonstrates its expansive approach to sustainable finance. Its portfolio includes companies across sectors like food, climate tech, fintech, battery storage, electric aviation and more. For example, in January 2022 CSI invested in HelloAva, a women’s health startup using AI for menstrual care. The same month, it also backed Treau, a carbon tracking platform for agriculture. This variety spotlights CSI’s ability to identify sustainability opportunities across industries.
Cowen partnership lends credibility and reach
The fact that CSI is part of the established Cowen Inc. lends it additional credibility and reach within the finance community. Cowen has over 100 years of experience in investment banking, research and sales and trading. Its sizable capital base and connections can accelerate growth for CSI’s portfolio companies. Additionally, CSI can leverage Cowen’s institutional research capabilities to inform its sustainable investment process. The domain expertise and brand reputation make CSI an appealing partner for ESG-minded companies and investors alike.
CSI’s approach aligns with shifting priorities
As sustainable investing gains more prominence, CSI’s strategy is aligned with the industry’s shifting priorities. According to Opimas, global ESG assets are projected to exceed $50 trillion by 2025. CSI’s specialized approach caters directly to this demand. Its selective deal-making focuses on companies with technologies, products and services that drive sustainability across areas like renewables, efficient operations, health and safety. As stakeholders continue to emphasize ESG, CSI is poised to deploy more capital through targeted sustainable investments.
Through significant funding rounds and a diverse portfolio, Cowen Sustainable Investments has established itself as an emerging leader in ESG investing. Its partnership with Cowen Inc. also provides credibility and scale. CSI’s specialized approach is well-matched to the finance industry’s growing emphasis on sustainability.