Vision Ridge’s second fund targets $600 mln for sustainable investments

  • Vision Ridge raised $430 mln in 2016
  • Previous fund supported by Grantham Foundation, Capricorn Investment
  • Firm founded by Reuben Munger in 2008

Vision Ridge Partners is marketing a $600 million private equity fund for sustainable investments, following up on a $430 million vehicle the firm closed in early 2016.

Vision Ridge disclosed some details of its new fund, known as Sustainable Asset Fund II, in SEC filings earlier this year. San Francisco Employees’ Retirement System board is weighing a commitment to Fund II, according to a copy of the retirement system’s meeting materials.

Vision Ridge specializes in acquiring assets associated with renewable energy or sustainability. Its portfolio companies include solar power companies in Massachusetts and Japan and a business that manages fast-charging stations for electric cars.

Last year, the firm partnered with Earth Partners, an organization dedicated to land preservation, to acquire two climate mitigation banks in Splendora, Texas. Mitigation banks create areas of preserved wetlands and streams, then sell credits to businesses whose developments require environmental offsets under the Clean Water Act.

San Francisco Employees’ Retirement System, Grantham and Capricorn could not be reached for comment.

Managing Principal Reuben Munger founded Vision Ridge in 2008 after more than 10 years at the Baupost Group, a multibillion-dollar hedge fund. Munger owns more than 75 percent of the firm’s management company and Justin Goerke, formerly of Capricorn Investment Group, is a partner at the firm, according to regulatory filings and the firm’s website.   

Vision Ridge’s debut fund was launched with the support of Capricorn Investment Group, a sustainability-focused wealth management firm, and Grantham Foundation for the Protection of the Environment, a $400 million environmental foundation.  

Sustainable investment strategies, particularly those focusing on environmental, social and governance issues, have grown increasingly popular in recent years as more investors take the overall impact of their holdings into account. In the past year, both Bain Capital and TPG raised private equity funds dedicated to investments in socially beneficial or environmentally friendly companies.

Vision Ridge declined to comment.

Action Item: For more on Vision Ridge, visit http://vision-ridge.com/

Stars are seen in the night sky over Kukenan (L) and Roraima mounts near the Tec Camp, near Venezuela’s border with Brazil January 14, 2015.  REUTERS/Carlos Garcia Rawlins