New Summit raises $100M new fund to support climate change technology and undervalued fund managers

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New Summit Investments is raising a new $100 million impact fund, according to documents filed with the SEC. The large amount of new funding will allow it to continue investing in managers who support startups and other companies focused on environmental and social issues.

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

Shin 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 market impact investing in 2016 and are pleased to continue this work,” Casey Dilloway, managing director at the firm, told TechCrunch. Ta.

The size of the new fund signals bullishness that it can persuade LPs to open their wallets, based not only on the company’s investment history but also on its impact-focused approach. The fund-of-funds approach helps small investors make bets by finding the best-performing companies while also taking environmental and social requirements into account.

SEC forms indicate that NewSummit is in the early stages of the financing process and has not yet secured capital commitments. So this is an interesting test case as to whether investors still care about his ESG. The minimum investment amount is $250,000, the form states, indicating the company intends to reach investors of various sizes and risk appetites.

PitchBook said the latest round of funding was driven in part by NewSummit’s interest in climate technology, which bucks venture capital trends, with deal numbers remaining high throughout 2023. Total investment last year reached $41.1 billion. While this falls short of the 2021 peak of $51 billion, venture capitalists say climate change remains one of two hot areas where deals are closing quickly. Of course, AI is the other side.

While a clear focus on diversity, equity, and inclusion may expose it to criticism from commentators, underrepresented founders who tend to take a more inclusive approach to technology and business There remains a pressing need to provide opportunities. New Summit has supported marginalized fund managers by initiating initiatives such as a partnership with Gratitude Railroad, an investment firm that sources and underwrites undervalued fund managers.

New Summit also joins a variety of other climate technology VCs, including ArcTern, Al Gore’s Generation Investment Management, and Obvious Ventures, as well as several diversified fund managers specializing in climate and health, including Black Opal Ventures and Buoyant Ventures. I’m investing.

New Summit Investments was founded in 2016 as an impact investment firm focused on climate, health, and economic opportunity. The paper aligns with the United Nations’ 17 Sustainable Development Goals, a framework that helps build a fairer planet by addressing issues such as access to clean water, quality education, and poverty reduction. Masu.

NewSummit Investments’ first fund closed in 2016 with $20 million and in 2018 with $36 million, according to Pitchbook.