Fundraising is down. Fund sizes are getting larger. And fundraising as a first- or second-time fund manager is not getting any easier.
ImpactAlpha tracked three dozen limited partners backing emerging managers since last year’s fourth quarter in climate, housing and biodiversity strategies.
Europe
French nonprofit Makesense raised €15 million ($16 million) for its third fund to invest in European companies reducing waste in food, healthcare and housing sectors. Investors included The European Investment Fund, Mirova and French fund-of-funds Revital’Emploi along with business angels and family offices.
In France, asset manager Tikehau Capital along with Bpifrance and SWEN Capital Partners invested in Ring Capital’s second buy-out fund, which closed at €217 million ($252 million). The European Investment Fund also served as an anchor investor, with Groupe Crédit Agricole and Abeille Assurances participating as well.
In the Netherlands, ING bank’s impact investing group and NN Social Innovation Fund backed Amsterdam-based Rubio Impact Ventures‘ third fund, which raised €70 million ($80 million) for Dutch impact companies.
The European Investment Fund also committed €30 million ($35 million) to Bluefront Equity’s second sustainable seafood fund. The Norwegian manager raised $100 million total for the aquaculture-focused fund, drawing Novo Holdings and the UK’s Esmée Fairbairn Foundation as new backers.
North America
In the US, Builders Vision, the family office of Walmart heir Lukas Walton, anchored Superorganism’s debut fund, which closed at $25.9 million to invest in biodiversity tech startups. Other investors included AMB Holdings and the Cisco Foundation.
Realize Impact, funded by Schmidt Family Foundation, provided a $500,000 recoverable grant to Enduring Planet’s second vehicle. The Washington, DC-based climate tech lender deploys non-dilutive working capital to US climate startups.
New York-based MSquared reached a second close of its Equitable Housing Solutions Fund, securing $139 million from Trinity Church, Capricorn Investment Group, Citi Community Capital and Deutsche Bank. The fund has financed 500 units of mixed-income housing in Dallas and Everett, Washington.
The Boston Impact Initiative closed its second fund at $22 million, surpassing its $20 million target, to invest in New England small businesses and nonprofits. The CDFI allocated 30% for community-controlled real estate and raised $1 million through community notes sold to local investors including Boston Medical Center and Union Capital.
The Bush Foundation backed Chicago-based Velveteen Ventures’ inaugural fund, which backs overlooked founders with lived experience advantages. The Native-run firm writes $250,000 to $2 million checks across pediatric healthcare, climate and consumer tech.
Global asset manager GCM Grosvenor recently invested in American South Capital Partners‘ third fund to finance affordable and workforce housing across the US south.
Emerging markets
In India, British International Investment anchored Bangalore-based Theia Ventures’ first climate tech fund with a $5 million commitment.
Teranga Capital invested in Senegal-based Maraz, which produces leather goods and trains 300 to 500 people annually in leathercraft. Teranga, anchored by French impact firm Investisseurs & Partenaires, provides equity to small businesses across West Africa.
In Ghana, Ci-Gaba raised $30 million from the FSD Africa Investments, Small Foundation, and Argidius Foundation. The fund of funds invests in small business fund managers across West Africa.Bogota-based Ewa Capitalclosed a second fund to invest in tech and health ventures across Latin America. It raised $24 million from over 50 investors, including funding from COFIDE and Bancóldex, the International Finance Corporation, the Visa Foundation, the Women Entrepreneurs Finance Initiative, and Mexico’s government-backed Fondo de Fondos. Private impact investors Sonen Capital and Switzerland’s Mountain Partners also participated in the round.
