Type: Aligned Investments
Topic: Clean Transportation, Renewable Energy, Technology
Status: Current
This fund buys other investors’ positions in clean tech venture capital and private equity funds at a steep discount – this is called the “secondary market”.
Investment
$7.5 million; originated in 2017.
Rationale
For investors the emergence of disruptive technology is not a smooth, straight path upward; rather it stops and starts, bubbles and bursts. North Sky evaluates and purchases other investors’ positions at a deep discount. While this investment does not create new clean tech businesses, a fully functioning secondaries market is a cornerstone of the private equity marketplace. It also diversifies McKnight’s impact investing portfolio.
Returns
Targeting market-rate returns, however no financial returns to report to date; fund is in acquisition phase.
Lessons Learned
Too early to report.
Photo Credits: Wikipedia Creative Commons
Disclaimer of Endorsement: The McKnight Foundation does not endorse or recommend any commercial products, processes, or service providers.
Last updated 11/2017