Lightrock, a London-based private equity platform that backs purpose-driven entrepreneurs tackling the world’s biggest challenges, has closed its inaugural Lightrock Climate Impact Fund.
The commitments amount to €860 million with the fund oversubscribed beyond its €600m target.
This can be attributed to strong support from Lightrock’s anchor investor LGT and its private banking clients, Lightrock co-investments as well as a diverse range of new investors.
The close of LCIF follows an intense period of fundraising at Lightrock, which has seen it close a Latin America focused growth fund with commitments of $300m in May 2022 and the Lightrock Growth Fund I with commitments of $900m in June 2021.
The Fund will make investments with a typical initial ticket size of €10-40 million in European and North American growth-stage companies that are innovating towards a Net Zero economy and building an operating system for climate action.
The Fund may also include a modest allocation to early-stage companies, provided they have clear potential to emerge as leaders within the climate themes it invests across and are showing emerging commercial traction.
Four of these themes correspond with the technology mix required to achieve Net Zero by 2050 – energy transition, decarbonising industries, sustainable food & agriculture and sustainable transportation.
Lightrock has already made seven investments in leading companies operating across its investment themes and in accordance with LCIF’s investment strategy. These assets are warehoused for the Fund and serve as a clear demonstration of its aims and ambitions.
“I want to extend my grateful thanks to our investors for their confidence in and support of our mission,” said Pål Erik Sjåtil, CEO and global managing partner of Lightrock.
“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.”