It hasn’t been a great year for socially responsible funds. JPMorgan said in June that it would no longer support Bay Area Equity Fund, its double bottom-line venture arm that invests in socially beneficial startups, and would spin it off. Also, Omidyar Network, which invests in nonprofits and for-profits that promote individual self empowerment, has been overhauling its team and strategy for several months.
But the rough year for do-gooder funds hasn’t discouraged Josh Becker and Benjamin Black. The two have launched fund-raising for New Cycle Capital, a $50 million early stage fund that will focus on socially responsible investing, PE Week reports. [Get the whole story]
The fund has already received an undisclosed anchor commitment from The Rappaport Family Foundation and a number of other high-net worth individuals and family foundations. The firm’s investment committee includes Andy Rappaport, general partner of August Capital, and Anne Martin, who manages venture investments for the Yale Endowment. The New Cycle partners say that the fund might balloon up to $75 million if limited partners like the offering. Becker says that he anticipates generating six to 12 times the LP’s initial investment.