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North Sky more than triples impact secondaries firepower

The Minneapolis-based firm's Clean Growth Fund V raised $220m and aims to generate strong returns while creating positive environmental and social benefits.

North Sky Capital has held the final close on its latest impact secondaries fund, which pulled in more than three-and-a-half times more than its predecessor vehicle.

The Minneapolis-headquartered firm raised $220 million for Clean Growth Fund V against a target of $150 million, according to a statement. Its 2016-vintage predecessor CG IV raised $63.2 million against a target of $50 million by final close in 2017.

CG V aims to generate strong returns while creating positive environmental and social benefits. It targets deals across private equity and real assets that use resources in a sustainable way, help with the transition to renewable energy or encourage better health outcomes and job creation.

The fund targets sellers that want to rebalance their portfolios or free up capital to reinvest in areas of impact investing such as energy storage, anti-ageing technology and indoor agriculture. It has so far made nine investments accounting for around 20 percent of the capital raised.

“Investor demand for our latest fund is a testament to this team’s steadfast determination over the last 15 years, in good times and bad, and our dedication to make the world a better place through smart, purposeful investments,” chief executive Scott Barrington said in the statement.

CG V launched last year and counts Oklahoma Police Pension and Retirement System, which committed $25 million, among its investors, according to Secondaries Investor data.

In June last year, North Sky hired Andrew Harris, a senior-vice president at placement agent Threadmark, as principal in charge of fundraising for impact secondaries and clean energy infrastructure.

Established in 2000, the firm has $1.4 billion in committed capital and offices in Boston and New York in addition to its headquarters.