ImpactAlpha, March 6 – Nordic private equity firm Summa Equity has closed a €610 million ($690 million) fund focused on solutions to the global challenges identified in the U.N. Sustainable Development Goals. The fund was backed by a range of unnamed Nordic, North American and Europe endowments, insurance firms, pension funds and funds of funds, the firm said in a statement.
The SDG fund is the Swedish-domiciled firm’s second. With the new raise, Summa now manages commitments of more than €1 billion ($1.1 billion) focused on investment opportunities driven by megatrends such as ageing demographics, movement of people, resource scarcity, population growth, climate change and technology disruption.
Summa’s portfolio includes 11 companies, including building energy-optimization company Egain Group, digital school solution firm Lin Education and Milarax, a processor of seafood products that provides cost-efficient proteins to the mass markets.
“The fundraising for Fund II shows that the investment community is beginning to understand that to outperform, one cannot be agnostic to the challenges we are facing” says Summa Equity’ Reynir Indahl. Indahl says at least some investors in fund I increased their investments in fund II.
“Investors increasingly recognise that companies that incorporate solutions to environmental, social, and governance challenges, will show stronger growth and returns, while having lower risk.”