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Get ready for another big fundraising year in impact

From diverse-owned business to agriculture and the environment, GPs are raising billions of dollars in capital to deploy into companies making an impact.

Private fund managers are already at work to make 2022 a big year for impact capital raises.

As the global shift towards sustainable investing continues, the world’s largest private markets firms, as well as smaller and more specialised managers, are collecting large sums of capital earmarked for benefitting communities and the environment. Although socially conscious investing, tackling themes ranging from diversity to human rights, is picking up steam, addressing climate change will remain at the top of investors’ priority list. From private equity to infrastructure and credit, managers are currently raising $183 billion to invest in climate solutions alone, according to Campbell Lutyens. Paula Langton, a partner at the placement agent, said climate strategies will develop even more in the venture capital seed-stage buyout space.

“Thinking about the fundraising market over the next six months… we are still seeing in investor’s allocations sustainability as one of the few new areas they’re continuing to deploy,” she told New Private Markets.

Some celebrated asset management firms are currently raising capital for impact-at-scale strategies. Alongside banner fundraises from TPG, KKR and Brookfield Asset Management, other brand name firms – such as Goldman Sachs, BlackRock, Apollo Global Management and Apax Partners – are marketing debut impact offerings.

These household names are joined in the market by a number of specialist managers. Nordic private equity firm Summa Equity achieved B-Corporation certification last year to invest in social and environmental causes with “purpose as well as profit,” and is raising its third flagship fund targeting €2 billion.

Alternative protein specialist Blue Horizon is planning to launch its next growth capital fund focused on investments in the food system and is targeting $750 million for its next vehicle.

Big-name backers have lined up behind private equity firm Trident, which is raising a $250 million inaugural fund with a focus on improving racial equity. The firm has secured investments from Vista Equity Partners founder and chief executive Robert Smith, Bank of America, Moody’s, and Brightwood Capital Advisors co-founder Sengal Selassie.