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Summa Equity, a Private Equity firm in the Nordics has raised €610 million (SEK 6.5 billion) in the second funding round. It has been announced that this capital will be used to invest in the company’s commitments to solve global challenges. On the whole, the private equity firm has raised aggregated capital commitments of €1 billion (SEK 11 billion).
Notably, Summa Equity was founded in 2016 by Reynir Indahl and is one of the first Private Equity firms to commit to UN SDG (Sustainable Development Goals). It does it by aligning its investment and value creation strategy with the framework of SDG.
The second round of funding will focus on investments that can exceed and are driven by megatrends such as movement of people, population growth, ageing demographics, resource scarcity, technology disruption and climate change. The investments are made in firms that work towards solving global challenges with themes such as Changing Demographics, Resource Efficiency and Tech-enabled Business.
Summa Equity Fund I involves 11 portfolio companies advancing the SDGs. By incorporating the SDK framework to shape the strategy of these companies, innovating to address the global challenges and measuring the effect of the same, it has shown strong growth and increased value.
The Fund II that was raised recently is backed by a strong investor base comprising top-tier endowments, insurance firms, pension funds and funds of funds. It includes a broad range of sustainability-oriented investors in the Nordics, North America and Europe.
Regarding Fund II, Reynir Indahl, Managing Partner of Summa Equity said, “We are seeing several challenges unfolding simultaneously; environmentally, socially, and with technology disrupting industries. We believe our biggest challenges are also our most attractive investment opportunities. The fundraising for Fund II shows that the investment community is beginning to understand that to outperform, one cannot be agnostic to the challenges we are facing.”
Jan Rådberg, Portfolio Manager Private Equity at API said, “AP1’s overriding goal is to deliver the best possible return on pension savers’ money. We are convinced that one way of achieving this goal is by considering sustainability aspects in our investment decision process. We seek investments which are characterized by sustainable value creation. We are therefore excited to invest in Summa Equity, and look forward to a close and fruitful cooperation.”
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