'We'll share everything' – merged VC giants to focus on adaptation and climate

Demea Invest’s arrival has already made waves across Europe’s impact scene – especially in Paris, where the new venture is based. France’s investment ecosystem is thriving, with major players like Mirova and Alter Equity leading the charge, alongside rising stars such as Serena and Daphni.

As the new kid on the block, Demea Invest brings together two established French heavyweights: Demeter IM and Cerea Partners. Both are already well-known in European impact investing, each managing around €1.5 billion in assets. Demeter has long focused on energy and ecological transitions, while Cerea specialises in agri-food innovation.

By combining their expertise and portfolios, Demea Invest has set an ambitious target: growing to €5 billion in assets under management by 2030.

So, how does Demea Invest plan to stand out from other French and European investment powerhouses? And what are its first steps once the ink is dry on the deal?

Just hours after the announcement, Impact Loop jumped on a video call with cofounder Stéphane Villecroze to get the inside story.

So how long was this deal in the works?

"It took us a bit longer with Cerea partners [than previous deals made by Demeter]. They are friends, but not exactly [working] on the same topic. They are specialists in agro-businesses but more in the sectorals, compared to our investments which are more in solutions to help the sector become greener.

Nevertheless, we know them quite well, and we already tried a few years ago to launch some funds together. They are more in leveraged buy-outs and private debt, so very complimentary, which is a plus for the merger.

On the other hand it was also a minus, because we had no pressure to do the deal, because we had different business lines and both management companies were growing. So it took longer because it was not as urgent as it could have been. But we are super happy to have done this. It’s very complimentary, only positive synergies."

Will the two firm’s teams become totally merged into the new company, or will some form of separation remain?

"It will be all together in the same holding structure, but (for now) the two management companies will remain independent – they will take their investment and divestment decisions independently. Because we need time.

So we first merge the holdings, and then the management companies. Once [we are] merged, we will share all the opportunities. Nevertheless, we will keep it as it exists today – five different sub teams: venture, growth equity, buyout, infrastructure and private debt. So we share everything, but the techniques are a bit different, even if some guys can jump from one business to another if they want to open their minds for a new fund."

And you have a target of a combined €5bn by 2030?

"Correct, and that's not super ambitious, because if you took the two management companies apart, a few months ago, the sum of our ambitions were more or less €5bn. But clearly the idea is, considering the size of the platform, to be able to attract new LPs, which means as well raising larger funds, but still continuing to analyse and develop some more local or focused opportunities. So, I think we should reach these figures, and probably beyond that."

What’s the vision for the new merged business? Which sectors do you plan to target?

"We see more and more opportunities in adaptation, and unfortunately, when you look at the news, you understand why. Of course mitigation has always been one of the drivers of our investments – in solutions for climate and environment – but adaptation clearly offers great market opportunities and growth perspectives.

Second, there are new projects that we can handle together, gathering the forces of Demeter and Cerea. A typical example would be green bonds, or green private debt, [or] infrastructure debt…Last but not least, if you look at Cerea’s DNA, they are less focused on solutions, but more on transition, how to help companies to continue their growth [while] taking into account less impact on environment, on climate, more resilience, sustainable transitions."

How long do you expect the company approval process to be? When will Demea become operational?

"It will take from two to three months…As the two management companies are owned by their teams, it’s not very complicated for the French market authority [but] we need the approval of some LPs (limited partnerships), depending on the funds…Strangely enough, we also don't have so many LPs in common. I think we have more or less 250 LPs, and less than 10% are shared. So that’s a real plus."

How did you decide on the name Demea? Was there a lot of negotiation involved?

"Okay, I’ll share the secret. We used a famous AI program to help us find the name. It was fast and cheap. We had some ideas, of course, but we also asked the AI, which proposed a few new ideas, including Demea."

Additional research by Maddy Savage.