SDG 3 – Good Health & Wellbeing – continues to attract the majority of the private equity impact capital, with a total of 477 funds targeting that theme, according to the Amsterdam-based impact consultancy.
In brief
- Private equity funds represent 54% of the total and are the largest category in the database
- 87 private equity impact funds were launched in 2022
- Committed capital to impact private equity funds represent €161bn, up by 1.9%
- Venture capital impact funds make up 59% of the private equity sub-strategy funds
Private equity funds remain the biggest contributor to impact capital, according to the latest report by impact investment consultant Phenix Capital. 54% of the total number of funds in the Phenix Impact Database are private equity investment vehicles.
The database includes more than 2,200 impact funds, across asset classes and geographies. The total number of private equity funds was 1250 at the end of January, growing by 10.2% from 2021. Asset under management in private equity funds now represent €161bn, up by 1.9%.
According to the report, the first half of 2022 saw a continuation of the positive 2021 momentum for the asset class, but private equity firms became for cautious during the second half of the year as a consequence of the global macro impact of the war in Ukraine and rising inflationary pressures.
From an impact perspective, focus on energy transition accelerated as the EU’s self-imposed sanctions on gas imports from Russia led to the end of gas supplies to Europe. However, according to the report, it was food security which jumped into the spotlight.
SDG 7 – Affordable and Clean Energy – retained its 3rd place in terms of capital raised in impact private equity funds in 2022, while SDG 2 – Zero Hunger -jumped from 14th place to 5th slot, the consultant said.
As a legacy of COVID-19, SDG 3 – Good Health & Wellbeing – continues to attract the majority of the private equity impact capital, with a total of 477 funds targeting that theme, having raised a cumulative €66bn.
Access the full report, here.
For more data and analysis on impact funds, download the 2023 Impact Investor Guide
