Impact Engine Announces $85M Close of Second Private Equity Fund Bringing Total Assets Under Management to $240M
New Fund Has Already Made Commitments to Six Funds
and Seven Companies Across Health Equity, Climate Tech, and Economic Opportunity
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Chicago, IL – February 27, 2024 – Impact Engine, an independent, women and BIPOC-led and employee-owned asset manager investing in venture capital and private equity strategies, announced today the final close of its $85M private equity fund, Impact Engine Private Equity Fund II, bringing the firm’s total assets under management to $240M. Impact Engine’s strategies seek to drive financial returns and social or environmental impact returns related to economic opportunity, environmental sustainability, and health equity.
Impact Engine launched its private equity strategy in 2019 and since then has made commitments to 11 funds and 18 companies that improve health equity, environmental sustainability, or economic opportunity. IEPE II is backed by a number of prominent investors, including Builders Initiative, the Kellogg Foundation, and the Surdna Foundation.
"In order for the impact investing market to continue to thrive, we need compelling investment opportunities across every asset class. The private equity sector is full of opportunities to drive both financial performance and impact, which is why we're so excited about PE Fund II," said Noelle Laing, Chief Investment Officer of Builders Initiative. "Impact Engine has been a partner of ours for several years because of their leadership and commitment to this space and their strong alignment to our mission. We're pleased to support this fund as we continue to work together to help move the impact industry forward for the benefit of our communities and our planet."
Founded in 2012 with the goal of demonstrating the ability to fully align financial returns with positive impact outcomes, Impact Engine has worked for over a decade to grow its impact and the field, with all funds on track for target returns. The firm is able to leverage its unique vantage point, deploying capital across both venture and private equity capital stages and across both company and fund investments.
“We are proud to close our second private equity fund with the support of prominent foundations and family offices and their advisors, all of whom are aligned with our strategy to put private capital to work effectively and profitably in ways that make meaningful impact alongside compelling financial returns,” said Jessica Droste Yagan, Partner & CEO of Impact Engine. “Our deep expertise, decades-long experience as impact investors, and extensive network have allowed us exceptional access to the most promising emerging private equity managers and companies across the most promising sectors. We are often one of the first to see the potential for meaningful financial returns and impact outcomes of the firms we’re backing. We are proud of the success many of our GPs have had in attracting additional institutional capital and building the investment firms of the future.”
“For over ten years, we’ve been committed to growing the field of impact investing by demonstrating how to invest successfully in impact-oriented funds and companies while working alongside our partners and colleagues in the field to scale and grow the impact sector,” said Priya Parrish, Partner & Chief Investment Officer of Impact Engine. “Our rigorous due diligence process allows us to populate our portfolio with diverse and exciting managers and companies seeking mission-aligned investors and value-added partnerships. Through the latest commitments from our investors, we will continue to foster the impact ecosystem by investing in attractive market opportunities that generate environmental and societal impact.”
Impact Engine Private Equity Fund II’s strategy enables investors to access deep impact across funds and companies through a highly diversified, risk-adjusted portfolio designed to deliver competitive returns.
To date, the Fund has made the following commitments:
Fund investments:
● Martis Capital, a healthcare private equity fund building companies that seek to improve the quality of care and address the complex challenges facing the U.S. healthcare industry today.
● The Vistria Group, an investment firm that operates at the intersection of purpose and profit. Leveraging unparalleled expertise in policy, they look to partner with the best U.S. middle market firms across health, education and financial services.
● Lumos Capital Group, a growth equity investment firm with a focus on global companies developing innovative technologies and platforms in education technology, knowledge services, and human capital development.
● Blume Equity, which invests thematically in tech-enabled businesses across sustainable food, healthy living, and responsible consumption at the growth equity stage in Europe.
● Ara Partners, a PE firm specializing in growth and buyout decarbonization investments throughout North America and Western Europe.
● NextBillion Capital Partners, investing in growth stage impactful technology companies serving the digital needs of the next billion consumers and businesses in emerging markets.
Company investments:
● Jetty, a financial services company on a mission to make home renting more affordable and accessible.
● Circuit, which provides short-distance EV solutions that are affordable and sometimes even free in cities across the country.
● Alcanza Clinical Research, the next-generation site network organized to support clinical trial quality, diverse patient access and efficient enrollment performance.
● Matsmart, the leading European surplus food platform selling surplus inventory from leading FMCG (Fast Moving Consumer Goods) brands.
● Acelero Learning, an early childhood education platform serving low-income communities as a direct operator of Head Start centers and via tech-enabled services to other HS operators, states, and municipalities.
● Perfect Power, which acquires, develops, redevelops, owns, and operates electric power generation assets. The company is focused solely on assets that enable the decarbonization of the electrical grid, specifically renewable energy generation and battery energy storage.
● Vacuumschmelze, an advanced magnetic materials and solutions company developing components for the clean energy transition.
In addition to its fund of funds and direct investment strategies, Impact Engine offers bespoke impact investing strategies. In March 2023, Impact Engine announced the final close of a purpose-driven fund offered exclusively to clients of Bernstein Private Wealth Management, the private wealth business of AllianceBernstein L.P. The Fund invests in venture, growth equity, and buyout funds driving impact in one or more of Impact Engine’s three core focus areas: economic opportunity, environmental sustainability, and health equity.
About Impact Engine
Impact Engine is a women-led and employee-owned asset manager that has been working to build the impact investing industry since 2012 through investments that deliver attractive risk-adjusted returns and deep impact outcomes. Based in Chicago, Impact Engine invests exclusively in funds and companies that are driving positive impact in economic opportunity, environmental sustainability, and health equity. The firm, a Public Benefit Corporation, provides investment capital along all stages of the life cycle of an enterprise, from early-stage venture to growth and buyout private equity, and in funds across this spectrum. Impact Engine’s multi-faceted investment approach ensures that it operates at the center of the impact innovation ecosystem, giving the team unique access to differentiated, high-quality deal flow as well as comprehensive knowledge of the market. To learn more, please visit www.theimpactengine.com.
Endorsements are provided by individuals who are invested in an Impact Engine fund and/or are associated with portfolio holding companies/funds and may therefore have an interest in the success of Impact Engine. No compensation was provided for the endorsements. Total assets under management (AUM) is based on most up-to-date information as of February 27th.
Media Contact:
Cindy Stoller
Confluence Partners
917-331-0418
Key Quotes
● Barry Uphoff, Founding and Managing Partner, Martis Capital
“Impact Engine plays a unique and important role amongst our LPs,” said Barry Uphoff, Founding and Managing Partner, Martis Capital. “Their highly informed perspective has brought our health equity outcomes into sharper focus, helping us distinguish between general healthcare investing and striving for improved outcomes. They are a true strategic partner, and we prioritized getting them onto our Limited Partner Advisory Committee so we could leverage their insights as we partner with our portfolio companies.”
● Rahul Advani, CEO and Managing Partner, SER Capital Partners
“Impact Engine was an early supporter of our firm, coming into the first close of our first fund,” said Rahul Advani, CEO and Managing Partner, SER Capital Partners. “Their outsized reputation in the marketplace for deep diligence and conviction in the ability to achieve financial and social returns was a huge vote of confidence that helped us drive other major investors investing behind us.”
● Kelly McCarthy, Head of Impact, The Vistria Group
“Impact Engine has provided valuable insights and thought partnership throughout Vistria’s journey to develop leading-edge impact measurement and management practices,” said Kelly McCarthy, Head of Impact, Vistria PRG. “Their approach to GP engagement on impact is differentiated, and a meaningful value add.”
● Victor Hu, Founder and Managing Partner, Lumos Capital Group
“Impact Engine has been there since the very beginning of our firm when we decided to commit ourselves fully to impact investing,” said Victor Hu, Founder and Managing Partner, Lumos Capital Group. “As our earliest partner, they helped us decide what it looks like to be an authentic impact firm and played a vital role in setting us up for success, including helping to form and Chair our Impact Advisory Council.”
● Humaira Faiz, Mission Investment Manager, W.K. Kellogg Foundation
“We admire how the Impact Engine team leads with impact and integrity. The way they’re approaching private equity to strengthen the sector is right in line with how we want to invest, which is to be a catalyst for economic opportunity, environmental sustainability and health equity,” said Humaira Faiz, Mission Investment Manager, W.K. Kellogg Foundation.
● Alex Chaloff, Chief Investment Officer, Bernstein Private Wealth Management, AllianceBernstein
"We conducted an extensive search for the right partner to build an impact private markets solution for our clients,” said Alex Chaloff, Chief Investment Officer, Bernstein Private Wealth Management, AllianceBernstein. “Impact Engine has the perfect blend of authenticity of impact and depth of financial rigor for our clients, who care deeply about investing for impact and do not want to sacrifice returns.”
● Adam Connaker, Director of Impact Investing, Surdna Foundation
“Time and again, Impact Engine is an early mover in the impact investing field, this time in private equity. They bring a unique understanding of what it takes to both evaluate and support the growth of emerging managers,” said Adam Connaker, Director of Impact Investing, Surdna Foundation.