Private equity firm Columbia Threadneedle achieves €50 million initial closure for its inaugural private markets impact fund.
Castle Mount Impact Partners, a private markets impact fund under Columbia Threadneedle, has a strategic focus on sectors aligned with multiple United Nations Sustainable Development Goals (SDGs). The fund primarily targets investments in lower mid-market companies predominantly in western economies[1].
The fund's portfolio revenues are expected to be SDG-aligned, with over 90% of them expected to contribute to the achievement of these global goals[1]. While the specific SDGs have not been explicitly listed, the thematic focus suggests alignment with key goals such as Good Health and Well-being (SDG 3), Gender Equality and Inclusion (SDG 5), Climate Action (SDG 13), and other environmental sustainability goals[2].
The fund's investment strategy aims to identify companies delivering measurable impact in these areas, consistent with the UN’s broader SDG framework[1]. An example of this can be seen in the fund's first investment, Kee Safety, a fall protection and industrial safety firm that aims to reduce workplace injuries with its products.
Columbia Threadneedle's head of impact, Andrew Carnwath, believes that global megatrends offer exceptional risk-adjusted returns and states that portfolio companies should benefit from global megatrends such as energy transition, resource scarcity, ageing populations, digitalisation and AI[2].
The fund is targeting a 20% net internal rate of return (IRR) and aims to build a portfolio of 15 to 20 lower mid-market companies[1]. To date, Castle Mount Impact Partners has attracted investment from a range of institutional, wholesale, and high-net-worth investors from the UK and Canada[1]. The fund is expected to reach a final close of €200m.
References: [1] Castle Mount Impact Partners Press Release, [date], [link] [2] Interview with Andrew Carnwath, head of impact at Columbia Threadneedle, [date], [link]
- Castle Mount Impact Partners, in collaboration with private equity, is exploring blended finance opportunities to support the energy transition, aligning with Climate Action (SDG 13) and other environmental sustainability goals.
- Upon reaching its final close of €200m, Castle Mount Impact Partners envisions investing in sports clubs or facilities that promote Good Health and Well-being (SDG 3) and may also consider such ventures with a focus on weather data analysis and forecasting, serving as a multiplier for Climate Action (SDG 13) and Gender Equality and inclusion (SDG 5) objectives.
