Dealflow | November 11, 2022

ImpactAlpha Deal Spotlight: Oversubscribed impact funds

Roodgally Senatus

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ImpactAlpha Editor

Roodgally Senatus

ImpactAlpha, November 11 — In a challenging year for raising capital, impact funds are bucking the trend.

Impact-focused climate funds from large private equity firms like Brookfield and Lightrock, for example, have been oversubscribed.

San Diego-based private equity impact investor HCAP Partners in September raised $353 million for a good jobs fund. HCAP said the fund exceeded its initial fundraising target by over 40%.

Women-owned venture impact firm Urban Innovation in August raised $121 million for a smart cities fund. The San Francisco-based fund manager, which initially set out to raise $80 million, created a $20 million Opportunity co-fund to meet demand from LPs.

New funds

This week, Washington, D.C.-based impact fund manager Quona Capital raised $332 million for its third financial inclusion fund. The fund, which exceeded its $250 million target, will back ventures expanding access to financial services in emerging markets.

Separately, Snowmass Village, Colo.-based VoLo Earth raised $90 million for its debut climate tech early-stage fund. The firm says demand from investors, including Credit Suisse’s Climate Innovation Fund, enabled it to blow past its initial $50 million target.