New Summit Investments is raising $100 million for a new impact fund, according to filings with the SEC. If the massive new fund is raised, it will continue to invest in managers who support startups and other companies focused on environmental and social issues.

This is the firm’s fifth fund, a significant increase from its previous fund, which closed in 2022 at $40 million. New Summit invests in a variety of other funds, including venture capital, real estate investors and infrastructure investors. The firm currently has $115 million in assets under management, according to PitchBook.

New Summit declined to comment on the strategy or timing of the new fund, citing safety regulations. “We launched one of the first multi-manager strategies for private markets impact investing in 2016 and are excited to continue that work,” Casey Dilloway, managing director at the firm, told TechCrunch.

The size of the new fund suggests it can convince limited partners to open their wallets, not only based on the firm’s investment history but also its impact-focused approach. The fund-of-funds approach helps small investors place bets by finding the best-performing companies that meet environmental and social requirements.

The SEC form indicates that New Summit is in the early stages of the fundraising process and has not yet secured any capital commitments. So this is an interesting test case to see whether investors are still interested in ESG. The minimum investment amount is $250,000, the form shows, indicating that the company intends to reach investors of varying sizes and risk appetites.

One reason for the funding is New Summit’s interest in climate technology, bucking a trend in venture capital that has seen deal numbers remain high throughout 2023, according to PitchBook. Total investment last year reached US$41.1 billion. While that’s down from a peak of $51 billion in 2021, venture capitalists say climate remains one of two hot areas where deals are closing quickly. Of course, artificial intelligence is another.

While the explicit focus on diversity, equity, and inclusion may be criticized by commenters, there is still a critical need to provide opportunities for underrepresented founders, who tend to take a more inclusive approach to technology and business. New Summit supports marginalized fund managers by launching initiatives such as its partnership with investment firm Gratitude Railroad to source and underwrite underrepresented fund managers.

New Summit has also invested in several diversified fund managers focused on climate and health, including Black Opal Ventures and Buoyant Ventures, as well as a range of other climate technology venture capital firms, including ArcTern, Al Gore’s Generation Investment Management and Obvious Ventures.

Founded in 2016, New Summit Investments is an impact investing firm focused on climate, health and economic opportunity. Its paper follows the United Nations’ 17 Sustainable Development Goals, a framework designed to help create a fairer planet by addressing issues such as access to clean water, quality education and poverty reduction.

New Summit Investments’ first fund raised $20 million in 2016, followed by $36 million in 2018, according to Pitchbook.

#Summit #raising #million #fund #support #climate #tech #underrepresented #fund #managers

Leave a Reply

Your email address will not be published. Required fields are marked *