Global private equity investor Lightrock announced today the close of its inaugural Climate Impact Fund (LCIF), aimed at investing in growth-stage companies focused on technologies to help achieve global climate goals.
Lightrock raised €860 million for the fund, significantly exceeding its initial €600 million target.
The new fund aims invest in four key areas of technology supporting the achievement of net zero by 2050, including energy transition, decarbonizing industries, sustainable food & agriculture and sustainable transportation. LCIF is expected to deploy typical initial ticket-sized investments of €10-40 million to European and North American growth-stage companies innovating towards a net-zero economy by 2050 and building operating systems for climate change issues. The Fund may also make a modest allocation of funds to early-stage companies with commercial traction and emerging leadership potential.
To date, Lightrock has made seven investments in leading companies operating across sustainable investment themes, including Mainspring Energy, which is transforming the grid to deliver affordable, reliable, net zero-carbon electricity and Kebony, which enhances the properties of sustainable softwood with a bio-based liquidas an alternative to cutting down trees and creating environmentally damaging products for consumers.
Pål Erik Sjåtil, the CEO and Global Managing Partner of Lightrock, said:
“I want to extend my grateful thanks to our investors for their confidence in and support of our mission. This is Lightrock’s third successful fund close in little over a year and it represents a resounding endorsement of our mission to scale impact investing.”
LCIF is classified as an Article 9 Fund under the Sustainable Finance Disclosure Regulation. LCIF portfolio companies are expected to report their environmental impact on a regular basis, receiving impact assessment and management benefits from Lightrock as well as independent third-party verification.