Private equity firm Columbia Threadneedle confirms a €50 million initial close for its private markets impact fund.
Columbia Threadneedle's Castle Mount Impact Partners Raises Over €50m
Castle Mount Impact Partners, a private markets impact fund managed by Columbia Threadneedle Private Equity, has successfully raised over €50m at its first close. The fund, which was launched in 2021 under BMO Global Asset Management, aims to reach a final close of €200 million.
The fund focuses on private markets investments in companies whose activities align with the UN Sustainable Development Goals (SDGs). It is expected that over 90% of the revenues from its portfolio companies will be SDG-aligned, emphasizing impact areas such as environmental sustainability, health and wellbeing, and equality and inclusion.
The fund's investment strategy involves carefully developing the investment proposition and impact methodology since pre-marketing began in 2021. It seeks to invest across sectors that contribute to the SDGs, and its first investment has been made in Kee Safety, a firm specializing in industrial safety products aimed at reducing workplace injuries.
Kee Safety's products aim to address the global trend of workplace safety, a significant aspect of health and wellbeing. The fund's investment approach aims to help companies measure and articulate their positive impact, accelerating growth in profitability and shareholder value.
The fund's investment strategy is also designed to benefit from global megatrends such as the energy transition, resource scarcity, ageing populations, digitalisation, and AI. These trends provide the most attractive investment opportunities and offer exceptional risk-adjusted returns, according to Carnwath.
The fund has attracted investment from a range of institutional, wholesale, and high-net-worth investors primarily from the UK and Canada. With this initial success, Castle Mount Impact Partners is poised to build a portfolio of 15 to 20 lower mid-market companies, each delivering human and planetary needs while aiming for a 20% net internal rate of return (IRR).
In summary, Castle Mount Impact Partners is actively fundraising with a clear impact-driven investment mandate aligned to the UN SDGs, has made initial investments targeting companies with measurable social and environmental benefits, and is managed by Columbia Threadneedle Private Equity as part of its commitment to responsible investment.
- The fund, managed by Columbia Threadneedle Private Equity, utilizes blended finance strategies to invest in private equity markets, with a focus on companies contributing to the United Nations Sustainable Development Goals (SDGs).
- Castle Mount Impact Partners' investment strategy encompasses various sectors that promote SDG-aligned revenues, including environmental sustainability, health and wellbeing, and equality and inclusion.
- The fund aims to position itself for growth opportunities in global megatrends like the energy transition, resource scarcity, digitalization, ageing populations, and AI, all of which are expected to offer excellent risk-adjusted returns.
- Through its investments, such as Kee Safety, the fund seeks to promote positive impacts on both human and planetary needs, while striving for a 20% net internal rate of return (IRR).
- As technology plays an increasingly critical role in business and the environment, Castle Mount Impact Partners is well-positioned to make considerable strides in the realm of environmental-science and climate-change by partnering with innovative, tech-driven companies.
