US private equity firm launches environmental infra fund

NewWorld Capital, a New York-based private equity firm that was founded three years ago by executives from the likes of Goldman Sachs and McKinsey, has launched a new environmental infrastructure fund backed by funds of funds manager North Sky Capital.

NewWorld Capital Group (NewWorld), a New York-headquartered private equity firm focused on environmental opportunities, has launched a new fund to invest in environmental infrastructure.

The NewWorld Environmental Infrastructure LP will provide project equity and asset-backed structured equity to clean infrastructure projects and companies. The size of the fund has not been disclosed, although a statement said that US funds of funds manager North Sky Capital had made a commitment from its CleanTech Alliance Fund. 

NewWorld, which was formed in 2009, focuses on growth equity and control investments in mid-sized and smaller deals in areas such as energy efficiency, clean energy, water resources and waste-to-value – mainly in the US and Canada but also “selectively” in Europe. In a statement, it said the infrastructure fund would “enable it to invest in a broader range of environmental opportunities”. 

In the same statement, North Sky Capital managing partner Scott Barrington said: “We have a strong and long-standing relationship with the NewWorld team, having invested alongside them in the past. We worked closely with them to develop this environmental infrastructure initiative.” 

NewWorld is headed by chairman and managing partner Carter Bales, a director at consulting giant McKinsey between 1978 and 1998 who went on to run Wicks Group, a private equity firm focused on the information industry in the US, between 1989 and 2006. Former senior General Electric executives Ali Iz and Everett Smith are also managing partners at NewWorld.