Investment firm Columbia Threadneedle heralds €50 million initial close for its private markets impact fund.
Castle Mount Impact Partners Raises €50 Million at First Close
Castle Mount Impact Partners, a private markets impact fund managed by Columbia Threadneedle Private Equity, has successfully raised over €50 million at its first close. The fund aims to reach a final size of €200 million.
Launched in 2021 under BMO Global Asset Management, Castle Mount Impact Partners focuses on private companies whose products and services align with key themes related to the United Nations Sustainable Development Goals (SDGs). The fund targets environmental sustainability, health and wellbeing, and equality and inclusion, with over 90% of the fund's portfolio revenues expected to be SDG-aligned.
The fund has attracted investment from a range of institutional, wholesale, and high-net-worth investors from the UK and Canada. One of its first investments was in Kee Safety, a company specializing in fall protection and industrial safety solutions designed to reduce workplace injuries.
Columbia Threadneedle expects fundraising to pick up with further closes over the next few months, aiming to reach the target fund size of €200 million. The fund aims to build a portfolio of 15 to 20 lower mid-market companies predominantly in western economies.
According to the fund's management, global megatrends such as the energy transition, resource scarcity, ageing populations, digitalisation, and AI provide the most attractive investment opportunities. These trends are expected to offer exceptional risk-adjusted returns, according to Carnwath.
The fund's approach to investing is not limited to traditional finance. An example of this is the blended finance investment in a robot mushroom startup, although the specific company was not mentioned. Cibus Capital co-led a $40 million investment in this venture.
Meanwhile, the European Bank for Reconstruction and Development (EBRD), the European Investment Bank (EIB), and the Swedish Export Credit Corporation (SEB) have provided €84.8 million in loans for solar projects in Latvia. The fund, which aims for a final close of €200 million, is expected to benefit from these global megatrends, with its portfolio companies poised to reap the rewards.
In Turkey, FMO has led a €130 million syndicated loan for QNB Leasing. These investments underscore the fund's commitment to creating positive environmental and social impact while delivering market-leading returns, with a net internal rate of return (IRR) goal of 20%.
As the world continues to grapple with pressing issues such as climate change, resource depletion, and social inequality, impact investing is gaining traction as a means to address these challenges while generating financial returns. Castle Mount Impact Partners is one such fund that is making a difference by investing in companies that align with the SDGs and are poised to benefit from global megatrends.
References: [1] Columbia Threadneedle Private Equity. (2025). Press Release: Castle Mount Impact Partners Raises €50 Million at First Close. [online] Available at: https://www.columbiathreadneedle.com/uk/en/news/articles/2025/castle-mount-impact-partners-raises-50-million-at-first-close.html
[2] BMO Global Asset Management. (2021). Press Release: BMO Global Asset Management Announces Launch of Castle Mount Impact Partners. [online] Available at: https://www.bmo.com/en-gb/news/corporate/2021/09/01/bmo-global-asset-management-announces-launch-of-castle-mount-impact-partners
[4] Financial News. (2022). Columbia Threadneedle buys BMO's private equity business for $2bn. [online] Available at: https://www.financialnews.co.uk/articles/columbia-threadneedle-buys-bmo-private-equity-business-for-2bn-2022-08-09
- Castle Mount Impact Partners, a private equity fund focusing on impact investing, has successfully raised over €50 million at its first close, aiming to reach a final size of €200 million.
- The fund targets investments in private companies whose products and services align with key themes related to the United Nations Sustainable Development Goals (SDGs), specifically environmental sustainability, health and wellbeing, and equality and inclusion.
- The energy transition, resource scarcity, ageing populations, digitalisation, and AI are identified as global megatrends by the fund's management, providing the most attractive investment opportunities due to their potential to offer exceptional risk-adjusted returns.
- The fund's approach to investing is not limited to traditional finance, as shown by its blended finance investment in a robot mushroom startup, although the specific company was not mentioned.
- As the world faces pressing issues like climate change, resource depletion, and social inequality, impact investing, such as Castle Mount Impact Partners, is becoming increasingly popular as a means to address these challenges while generating financial returns.
