Dealflow | September 6, 2022

New Island Capital winds down and moves its assets to Grounded Capital

David Bank
ImpactAlpha Editor

David Bank

ImpactAlpha, Sept. 6 – San Francisco-based impact investment vehicle New Island Capital, founded in 2006 by a member of the wealthy Pritzker family, will transfer its assets under management and advisement to Grounded Capital, also in San Francisco.

Grounded’s Stephen Hohenrieder has been serving as New Island’s interim CEO since January. “It came as a surprise when the founder of New Island proposed that Grounded manage the existing investment portfolio,” Hohenrieder said in a joint statement.

The founder of New Island, who per the firm’s long standing practice was not identified, said, “The motivation for us was always the impact, not the building of a firm,” adding, “Two firms working in precisely the same way does not advance our mission; working together will.”

Commercial scale

New Island, which makes investments of $5 million or more in commercial-scale companies and farm and forest ventures, says it has more than 100 active investments and has notched several dozen exits.

The firm aims to “structure financing to advance more equitable distribution of the rewards of ownership of natural resources, ethical consumer brands, financial resources and renewable energy production.” Grounded will take over the portfolio Nov. 1.

The statement said most members of New Island’s team have received offers to join Grounded.