Stockholm (NordSIP) – Launched in 2016, Stockholm-based private-equity firm Summa Equity invests in companies contributing to solving the global challenges identified in the UN Sustainable Development Goals (SDGs). The firm already boasts an impressive track record. In 2017, Summa raised EUR 470 million for its first fund, followed by a second one of EUR 680 million in 2019. It comes, therefore, hardly as a surprise that Summa’s third fund, closed in record time and oversubscribed within four months, managed to raise EUR 2.3 billion, despite an entirely virtual fundraising environment. This brings the aggregated capital commitments managed by the firm to nearly EUR 4 billion.
According to the announcement, the new fund will continue to build on Summa’s proven concept of incorporating the SDG framework in shaping the investment strategy of the portfolio companies. The managers intend to focus on thematic investments in industries supported by the same three megatrends as in their previous funds: resource efficiency, changing demographics, and tech-enabled transformation.
“With the scale-up in Fund III, we hope that Summa can significantly increase its positive impact on an international scale, investing in companies across the spectrum from young, high-growth companies to more mature firms,” comments Reynir Indahl, Managing Partner and Founder of Summa Equity. “Impact investing, or what we call Private Equity 4.0, is becoming mainstream as a growing number of PE firms are adding to their existing capabilities the effective management of impact on ‘externalities’ to address environmental, social, and governance challenges,” he adds.
According to the announcement, Summa Equity has made twenty-two investments that are advancing the SDGs, including five investments in 2021, with representation across all three structural themes. The firm is committed to the dual purpose of delivering a robust financial performance as well as demonstrable impact-oriented and ESG outcomes. Quantifying positive impact is a priority at Summa. The firm is pursuing a more stringent measuring framework through its collaboration with the Impact Weighted Accounts (IWA) project at Harvard Business School.
“The strong commitment to Summa Equity’s third fund confirms that our investors believe in our thematic focus, distinct deal flow and high caliber team, recognizing Summa Equity’s ability to deliver future-proofed superior returns whilst driving ESG outcomes. Together, we will continue to reimagine capitalism,” says Hannah Jacobsen, Investment Director and Head of Investor Relations
Photo courtesy of Summa Equity