New Summit Investments is gearing up to launch a brand new impact fund, seeking to raise an impressive $100 million, according to recent filings with the SEC. This substantial fund, if successfully raised, will allow the firm to continue its mission of investing in managers who support startups and companies dedicated to solving environmental and social issues.
This will be the fifth fund for the firm, a significant increase from its previous $40 million fund which closed in 2022. Current data from PitchBook shows that New Summit has $115 million in assets under its management.
The firm’s managing director, Casey Dilloway, remained tight-lipped about the new fund’s strategy and timeline due to security regulations. However, Dilloway shared, “We launched one of the first multi-manager strategies for private market impact investing in 2016 and are pleased to continue this work.”
The fund-of-funds approach helps smaller investors place bets by finding the best-performing firms that also hew to their environmental and social requirements. – Casey Dilloway
The size of the new fund indicates that New Summit is confident in its ability to convince LPs to invest, based not only on the firm’s successful investment track record but also on its impact-driven approach. This fund-of-funds model enables smaller investors to participate by carefully selecting the top-performing firms that align with their environmental and social criteria.
According to SEC filings, New Summit is still in the early stages of fundraising and has not yet secured any capital commitments. This presents an interesting test to see if investors are still interested in ESG investments. The minimum investment for this fund will be $250,000, suggesting that New Summit plans to attract investors of various sizes and risk appetites.
One factor that may work in New Summit’s favor is their focus on climate technology, which has maintained a high deal count in the venture capital industry throughout 2023, as reported by PitchBook. In the previous year, total investments in this sector reached $41.1 billion, a slight decrease from the peak of $51 billion in 2021. However, VCs note that climate remains one of the two hottest sectors for fast closing deals, with AI being the other.
Despite recent criticism from some quarters, New Summit’s explicit focus on diversity, equity, and inclusion continues to be vital. It is essential to provide opportunities for underrepresented founders, as they are more likely to take inclusive approaches to technology and business.
The firm has supported marginalized fund managers by launching initiatives, such as its partnership with Gratitude Railroad Investment and underwriting underrepresented fund managers.
Moreover, New Summit has invested in several diverse fund managers who specialize in climate and health, including Black Opal Ventures and Buoyant Ventures, along with other climate tech VCs like ArcTern, Al Gore’s Generation Investment Management, and Obvious Ventures.
New Summit Investments was founded in 2016, with a focus on impact investing in the areas of climate, health, and economic opportunities. The firm’s thesis aligns with the United Nations’ 17 Sustainable Development Goals, which aim to create a more equitable planet by addressing issues such as clean water access, quality education, and poverty reduction.
The firm’s initial fund closed at $20 million in 2016, with a second fund of $36 million following in 2018, as reported by PitchBook.
It’s exciting to see New Summit Investments’ continued dedication and growth in the impact investment space, with this new $100 million fund allowing for even greater support of important environmental and social causes through strategic investments.
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