Updated
Updated · ImpactAlpha · Jul 15
North Sky Capital Raises $235 Million for Fifth Impact Secondary Fund as Liquidity Strains Deepen
Updated
Updated · ImpactAlpha · Jul 15

North Sky Capital Raises $235 Million for Fifth Impact Secondary Fund as Liquidity Strains Deepen

1 articles · Updated · ImpactAlpha · Jul 15

Summary

  • $235 million has been raised initially for North Sky Capital’s fifth impact secondary fund, according to an SEC filing, putting the vehicle close to its $250 million target.
  • The fund will buy stakes in impact funds and companies from existing investors as a prolonged exit drought leaves limited partners seeking liquidity and capital to redeploy.
  • Private equity secondary funds raised nearly $30 billion globally in the first quarter, and William Blair projects PE and VC secondary deal value could reach $250 billion this year.
  • Impact investing still lags that broader market: Tom Jorgensen said about 5% of capital in non-impact funds goes to secondaries, versus roughly 0.1% in impact.
  • Deals such as Gratitude Railroad’s purchases of Unshackled VC stakes at typical 10% to 30% NAV discounts show secondaries gaining traction as a way to recycle capital and mature the impact ecosystem.

Insights

With private assets entering 401(k)s, are impact secondaries a smart portfolio move or a hidden risk for savers?
As Wall Street tools enter impact investing, can its mission survive the hunt for liquidity and higher returns?