North Sky closes two clean energy funds at US$300 MM

North Sky Capital has announced the closing of two investment funds at US$300 million.

North Sky Capital held a final closing for the Clean Growth Fund IV with total capital commitments of US$63 million, which was above the original US$50 million fundraising target. This is North Sky Capital’s sixth impact fund. Investors include prominent foundations and family offices from across the USA.

The goal of the fund is to generate an outstanding private equity return for investors, while also creating environmental and social benefits like renewable energy, resource efficiency and job creation. The team has already made four investments and deployed 23% of the fund’s capital.

Earlier this year, North Sky Capital closed its latest clean energy infrastructure fund, Alliance Fund II (AF II). AF II is a US$240 million fund that finances the construction and/or repowering of solar, wind, hydro, energy storage and other related projects. Investors include Taft Hartley pension plans, foundations and family offices. The returns, environmental and jobs creation goals of AF II are similar to Clean Growth Fund IV. So far, the team has made six investments and deployed 45% of AF II’s capital.

Gretchen Postula, Head of Investor Relations, said:

“Since 2005, we have been in the vanguard of the impact investment movement but always with the top priority of producing great investment returns. Our focus on industry sectors such as energy, food, water, transportation and industrial efficiency, means that a lot of environmental and social good will naturally emanate from our work. However, the goal from day one has always been clear: returns, returns, returns.”

Mike Pohlen, Managing Director, said: 

“This is an exciting time for us. We are aware of other firms that have raised three or four impact funds, but I don’t think any other firm has raised six of them. We have an unparalleled depth and breadth of view and understanding of private equity and infrastructure investment opportunities. We are using our experience and leadership position to create value for our investors and make the world a better place. We are very pleased with the investment opportunities we are seeing for CGF IV and AF II and the results so far.”