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.