Aravaipa Growth Equity Fund II
The Worlds’ First ESG Pre-SPAC Fund
Aravaipa Growth Equity Fund II (AGEF2), a $50 million venture fund, targets only private companies that can be merged with a SPAC within 18 months and can scale rapidly to their full environmental and financial potential once they are fully capitalized by the SPAC merger.
The recent surge of SPACs (400+ SPACs “hunting” as of March 2021) presents an exciting new path for ESG companies to raise growth capital to scale. While SPAC mergers can potentially give emerging ESG companies access to unprecedented amounts of capital, most ESG companies lack the experience and expertise to meet the many milestones and complete the complex process of a successful SPAC merger.
Through its first venture fund, Aravaipa management gained unique insight into the ESG SPAC merger process and its key success factors. At this time, we play a lead role in the SPAC process of two AVF1 portfolio companies. Robert Fenwick-Smith served as the CFO for Lightning eMotors during the critical 6 months of its SPAC merger process.
In its first year, AGEF2 will invest in the final pre-SPAC funding round of 3 to 6 high growth ESG companies that meet our proprietary selection criteria. AGEF2 will work closely with these companies to identify a strong SPAC partner and complete the Aravaipa SPAC Merger Process.
AGEF2 is a 3-year venture fund that is targeting a 5x to 20x return within 24 months for each of its investments. This strong value creation is driven by the Aravaipa proprietary selection criteria and the Aravaipa SPAC Merger Process. AGEF2 will distribute the shares of portfolio companies that have gone public as soon as permitted.
Already, AGEF2 is negotiating term sheets with 4 ESG companies to which we have long standing ties, that meet our proprietary selection criteria, and want to engage in our Aravaipa SPAC Merger Process.
These first four high-impact companies are in the following sectors: