North Sky Raises $250 Million for Private Equity Impact Fund
Impact investor North Sky Capital announced today that it has raised $250 million at the close of has closed its impact secondaries fund, Clean Growth VI (CG VI), aimed at investing predominantly in the energy transition, climate tech, the circular economy, and healthy living sectors.
Founded in 2000, North Sky aims to create positive social and environmental impact while generating strong financial returns, by investing in its two flagship investment strategies, impact secondaries (private equity) and sustainable infrastructure (direct). To date, the company has deployed over $1.4 billion across more than 140 impact investments on behalf of its various impact funds.
North Sky CEO Scott Barrington said:
“I am really proud of our secondaries team for the strong returns they are generating for investors and the important work they are doing to create a cleaner, greener planet Earth. North Sky has been at the leading edge of sustainable investing since that movement began in the private markets circa 2005. This team utilizes our global network of GPs, LPs, company founders and other market participants to source what we believe will be attractive, highly impactful investments.”
North Sky launched its first Impact Secondaries fund in 2013. The strategy seeks attractive returns and measurable impact by investing in private equity secondaries in cleantech, climate tech, waste and water, sustainable food & agriculture, and healthy living.
CG VI is an EU Sustainable Finance Disclosure Regulation Article 8 fund, meaning it promotes environmental or social characteristics. Fund investors include prominent pension plans, foundations, wealth management platforms, and family offices from across the United States, Canada, Brazil, Singapore and the UK/Europe. North Sky said that it has already deployed nearly 60% of CG VI funds and has scheduled its first distribution to investors later this month.
Tom Jorgensen, Co-Head of the impact secondaries team, said:
“North Sky is seeing a broad range of investments globally in developed markets, including in companies working on water remediation, smart grid, natural consumer products, heat pumps, EV charging, smokestack abatement for heavy industry, for-profit education, healthcare and many other sectors. Another positive is the impact marketplace has depth and breadth it did not have 10-15 years ago when most opportunities were confined to LP-led deals from 2005-8 venture firms. Today, the opportunities range from LP secondaries of venture capital, growth equity and buyout funds to single-asset and multi-asset GP-led deals that often include mature, cash-flowing businesses with strong growth profiles.”