Investment firm Columbia Threadneedle successfully raises €50 million at its initial stage for a private markets impact fund.
Columbia Threadneedle's new private markets impact fund, Castle Mount Impact Partners, has successfully raised over €50m at its first close. The fund aims to reach a final close of €200m, focusing on investments in lower mid-market companies predominantly in western economies.
The fund specifically targets the UN Sustainable Development Goals (SDGs) related to environmental sustainability, health and wellbeing, and equality and inclusion. Over 90% of revenues from portfolio companies are expected to be SDG-aligned.
Castle Mount Impact Partners has already made its first investment, which is into Kee Safety, a fall protection and industrial safety firm. Kee Safety's products aim to reduce workplace injuries, promoting health and wellbeing.
The fund intends to build a portfolio of 15 to 20 companies, with a focus on environmental sustainability (e.g., resource and environmental protection), health and wellbeing (e.g., workplace safety, healthcare-related products and services), and equality and inclusion (e.g., promoting diversity and equitable opportunities).
The fund's investments broadly map to the following SDGs:
- Environmental sustainability: SDG 6 (Clean Water), SDG 7 (Affordable Clean Energy), SDG 12 (Responsible Consumption), SDG 13 (Climate Action), SDG 15 (Life on Land)
- Health and wellbeing: SDG 3 (Good Health and Well-being)
- Equality and inclusion: SDG 5 (Gender Equality), SDG 10 (Reduced Inequalities)
Meanwhile, in other news, the EBRD, EIB, and SEB have provided €84.8m in loans for Latvia solar projects. This investment falls under the categories of Agri-food, Blended finance, Climate & environment, Energy transition, EU funding, Funds, Infrastructure, and Startup/Scale-up.
Elsewhere, Cibus Capital has co-led a $40m robot mushroom investment. The fund will focus on high-growth companies whose products and services are delivering human and planetary needs.
The fund has attracted investment from a range of institutional, wholesale, and high-net-worth investors from the UK and Canada. It aims to achieve a 20% net internal rate of return (IRR) and offers exceptional risk-adjusted returns, according to Carnwath.
The fund was launched in 2021 under BMO Global Asset Management. The energy transition, resource scarcity, ageing populations, digitalisation, and AI are identified as global megatrends that provide the most attractive investment opportunities. Impactful companies, with their strong and non-cyclical demand for products and services, offer some of the most attractive investment opportunities.
Lastly, Export Finance Australia has provided a $100m loan to EAAIF, further emphasising the growing trend towards sustainable and impactful investments.
[1] Columbia Threadneedle Investments [2] Castle Mount Impact Partners [3] UN Sustainable Development Goals
- Castle Mount Impact Partners, a new private markets impact fund managed by Columbia Threadneedle Investments, aims to raise an additional €150m to reach a final close of €200m.
- The fund focuses on investments in lower mid-market companies, specifically those aligned with the UN Sustainable Development Goals (SDGs).
- Over 90% of the revenues from portfolio companies are expected to be SDG-aligned, with a focus on environmental sustainability, health and wellbeing, and equality and inclusion.
- In its first investment, Castle Mount Impact Partners invested in Kee Safety, a fall protection and industrial safety firm, promoting health and wellbeing in the workplace.
- The fund intends to build a portfolio of 15 to 20 companies, aligning its investments with SDGs such as Clean Water (SDG 6), Affordable Clean Energy (SDG 7), Good Health and Well-being (SDG 3), Gender Equality (SDG 5), and Reduced Inequalities (SDG 10).
- Institutional, wholesale, and high-net-worth investors from the UK and Canada have invested in Castle Mount Impact Partners, recognizing its potential to achieve a 20% net internal rate of return and offering exceptional risk-adjusted returns.
