LGT offshoot raises $900m for Fund I

The fund will follow a growth equity strategy targeting European, Latin American and Indian companies focused on ‘impact themes of people, planet and productivity’.

Lightrock, a private equity impact investor created earlier this year by the banking and investment group LGT, has closed its first fund on $900 million, according to a statement Thursday morning.

The fund will invest in environmental and social impact sectors such as education, healthcare, access to finance, mobility, transportation, renewables and circular economy transition. It will target European, Latin American and Indian companies at series B or C growth stages, the statement said. The fund has already invested in 26 companies.

The capital for Lightrock Growth Fund I comes from a combination of LGT Group itself, which was founded by the royal family of Lichtenstein, and its private banking clients, who have invested through an evergreen feeder fund.

Lightrock was formally launched as a business in February this year when LGT decided to house all its impact investing activities under one roof. These disparate activities included: LGT Lightstone, a global direct private equity investor; Aspada, an India-focused impact unit; and Impact Ventures UK, a growth capital investor run by LGT Venture Philanthropy.

At launch in February, Lightrock’s portfolio contained 60 investments, 26 of which are housed in Fund I. These include: Infarm, an urban farming network; PharmEasy, an omni-channel Indian pharmacy; a German sustainable aviation business Lilium; and Creditas, a Latin American fintech company.

The firm employs a team of more than 55 private equity professionals – 40 percent of whom are female – from more than 13 different countries and across four continents with headquarters in London, the firm said.

“Building on our long-term partnership with LGT and the commitment of the Princely Family of Liechtenstein to entrepreneurship and positive impact, we look forward to backing more purpose-driven founders and their teams in scaling their businesses,” said Lightrock CEO and global managing partner Pal Erik Sjatil in the statement.