New European impact investment company – VC giants join forces

Paris-based investment heavyweights Demeter IM and Cerea Partners have announced they intend to merge to create a “leading player” in sustainability investing, neatly titled Demea Invest.

The merger, subject to approval, brings together two sizable portfolios in their respective sectors. It comes at an interesting time for Impact in France and Europe, with incoming EU regulations on sustainability reporting due to pressure a large swath of companies to find new solutions to make their supply chains and inputs more green.

Cerea – with around €1.5b under management - has for two decades led the way on agri-food innovation linked to the relevant SDGs of feeding the population, responsible consumption and production, and promoting well-being. They’ve partnered with developing businesses and household names in France such as Buffalo Grill, Petit Navire, Groupe Bertrand, Loyez-Woessen and De Sangosse.

2024 in particular was a big year for Cerea, with dozens of successful exits and new entries, and seeing a tripling of investor returns compared to 2023.

On the other side of Demea Invest is Demeter IM. Also operating for around two decades, and with €1.3bn under management, Demeter’s focus is the energy and ecological transitions. Working with hundreds of startups and SMEs, Demeter’s portfolio includes impact success stories like Deepki, Magic Pallet, Verkor, Sencrop, Stegra and Ynsect, as well as some of Impact Loop’s top picks to watch for 2025, Kapsera, RED Horticulture and Lactips.

Bringing these funds and portfolios together, and with 66 members of the combined team, the merged company is looking to establish itself as a leading thematic investor in both agri-food and energy, with a 2030 goal of doubling capital under management to €5bn.

“We are delighted to combine the expertise, experience, and skills of the men and women who have contributed to the success of Demeter and Cerea,” said the new firm in its announcement.

Demea Invest will see itself among a healthy impact investing scene in France, alongside other major impact investment managers like Mirova and Alter Equity, as well as newer players Serena and Daphni.