Our ranking of the world’s largest managers of private markets impact capital is now in its second year. As the sector has expanded and our data set has become richer, we have grown the list from 20 to 30 managers. With thanks to our research-focused colleagues, we launched the Impact 30 this week. Here are five headlines:
The climate crisis is shaping the list
The ranking is being shaped by the emergence of climate mega-funds. TPG, one of the early movers among the ‘mainstream’ firms to enter impact, tops our list, having been able to add the $7 billion raised for its Rise Climate Fund to its total. Brookfield Asset Management has raced up the ranking powered by its giant Global Transition Fund and Goldman Sachs Asset Management arrives as a top-five firm, powered in part by progress raising its Horizon Environment and Climate Solutions fund.
Three months is a long time in impact
While TPG sits at the top of the pile, it will have to work hard to stay there. In the period between the closure of our counting period (which ran to the end of March) and the finalisation of the research, Brookfield held the final close of its inaugural impact fund on $15 billion, adding a further roughly $5 billion to its Impact 30 ranking.
The link between impact and infra
A defining feature of the Impact 30 is the diversity of strategies that have attracted investor capital at scale. Indeed, many of the individual managers on our list span themes and asset classes. However, with two of our top five – Actis and Meridiam – being pure-play infrastructure investors, and Brookfield’s impact strategy having a large infra component, it is worth noting the link between infrastructure investment and large-scale impact. Not all infrastructure funds are impact funds, as we explored in this feature, but there is plenty of scope for the former to become the latter.
Introducing unusual private fund models
One of the nuances of private markets impact investing is the unconventional LP base it attracts. Alongside the familiar fund investors who participate purely for the risk-adjusted return (endowments, pension funds, insurers, etc) and the development finance investors seeking to stimulate growth, one increasingly finds corporates with a strategic interest. Energy Impact Partners and OGCI Climate investments have both made the list, powered largely by corporate limited partners that add an unusual LP-investee company dynamic.
London is the capital of impact
The leader may be headquartered in Fort Worth, Texas, but the largest cluster of Impact 30 managers is to be found in London, where seven firms have their headquarters. New York is home to four of the managers, as is Zurich (if you include nearby Baar-Zug). Three are based in Paris and two in Stockholm.
What are your thoughts on the Impact 30? Do you feel like your firm should be on the list? Email firstname.lastname@example.org