Spring Lane marks $151m first close with two new deals

The North American firm is seeking $400 million for its successor vehicle to a strategy targeting ‘catalytic’ sustainable infrastructure investments.

North American private funds manager Spring Lane Capital has held an initial close on $151 million for the firm’s second sustainable infrastructure investment vehicle, affiliate title New Private Markets reported.

The Boston-based firm announced the first close on less than half of the fund’s $400 million target. Spring Lane has earmarked the capital for “catalytic” investments in energy, food, water, waste and transportation, according to a statement.

The target for Fund II is nearly double the amount raised for its $157 million inaugural fund, which closed in 2019 and is almost fully deployed.

Spring Lane also announced two deals this week. In one deal, the firm has partnered with an unnamed investor to commit $13.5 million to Vandalia Growers USA, an indoor farming company based in West Virginia. For the other, Spring Lane said it has helped launch an organic natural gas developer in California.

“We believe the sustainability market for private equity has never been stronger,” Spring Lane co-founder Rob Day said in the statement. “And that there’s significant interest from a wide array of institutional investors. Investors are eager to find sustainable solutions to our biggest infrastructure and climate challenges that are designed to offer an attractive risk/reward profile.”

The corner of the market Spring Lane is targeting includes markets “more traditional forms of project capital cannot access due to their scale and the limitations of existing investment models”, the statement said.