Commerzbank recently announced an investment in Nixdorf Capital. The strategic partnership with the specialist in impact investing was sealed with an 18% shareholding. Neither party disclosed the exact amount of money involved, but it seems sufficient for Nixdorf Capital to scale up.

„We aim to grow, and invest in a new distribution license and more personnel, particularly for structuring and providing impact advisory for new funds", says Andreas Rickert in an interview with Börsen-Zeitung. Alongside Volker Weber, he is one of the two CEOs of Nixdorf Capital, and aims to mainstream impact investing.

Founded in 2016 by Dagmar Nixdorf, the boutique is not merely a wealth manager or family office. According to Rickert, while Nixdorf Capital initially provides some financial support to new funds, it is not the primary investor. Instead, Nixdorf nurtures a network with affluent entrepreneurial families, and aids fund managers in structuring and fundraising for impact funds. „However, what we lack is our own extensive sales team", notes Rickert.

Nixdorf Capital currently has a triple-digit million amount distributed across six funds. The cumulative target volume of these funds is 800 million euros. The investment strategies vary, ranging from a venture capital fund focusing on themes such the circular economy, to an umbrella fund investing in ocean projects, and a sustainable US real estate fund targeting affordable housing. Additionally, there are plans, or funds near to launch, involving transportation and logistics, intergenerational living, education financing, and private debt.

Thus far, funding for the impact funds has primarily come from very wealthy individuals, with some pension funds occasionally involved. Rickert anticipates a breakthrough among institutional investors and family offices, primarily through collaborations with specialized placement agents or with Commerzbank, which is currently expanding its asset management activities under its „Strategy 2027.“ However, Rickert emphasizes the necessity for other products as well. „With a small venture capital fund, I don't need to approach a pension fund," he says.

Rickert thinks big and isn't discouraged by setbacks. By the end of 2021, Nixdorf Capital announced its intention to raise up to 2 billion euros for Nixdorf's impact projects. The fact that this amount hasn't materialized yet is partly due to adverse macroeconomic conditions and the volatile environment that can't be escaped. „Impact Investing is not philanthropy", Rickert asserts.

Furthermore, impact investing isn't a separate asset class, but an investment strategy applicable to all existing asset classes, competing alongside them. Thus, the return on investment must always be viable. „If we want to mainstream impact investing, we cannot lag behind in returns", says Rickert. They must always be at least as high as conventional investments.

Rickert also distinguishes impact investing from general sustainable ESG strategies. „ESG seeks to minimize harm, whereas impact investing must demonstrably bring societal or ecological value", he explains. While the EU Taxonomy is crucial for this, „the Article 9 classification alone is not proof of genuine impact.". He defines the investment strategy as being based on three criteria: a value-based intention, a clear sustainable goal definition measurable by hard metrics, and a competitive return.

Rickert places great hope in the next generation of current entrepreneurial families, „because they recognize the necessity of combining societal or ecological value with investment.“, In contrast, the older generation of business owners often viewed the entrepreneurial and philanthropic spheres separately. Initially, investments focused solely on returns, with philanthropy following later to give back to society. „The next generation integrates these aspects more closely,“ says Rickert.

Capitalizing on the impact market through the capital market is crucial for sustainable transformation. Rickert estimates a financing gap of 4.2 trillion dollars for the 17 defined United Nations sustainability goals – if one genuinely intends to tackle these goals. „State institutions cannot do this alone, nor can philanthropy – we must tap into the capital market", he argues.

He is annoyed that Europeans are currently having the lead on this theme taken away by the Americans. The US is currently undertaking a lot of initiatives in the field of sustainable investing. Their approach is based on the free market and capitalism. But Rickert believes that the hotspot for impact investing should actually be continental Europe with its values-based entrepreneurship.