Sustainability-focused private equity investor Lightrock announced today the launch of its first public equities fund, Lightrock Global Small-Cap strategy, with €400 million of seed capital.

Founded by Prince Maximilian of Liechtenstein, London-based Lightrock focuses primarily on growth capital to back purpose-driven entrepreneurs addressing the world’s biggest challenges. The firm invests in companies that pursue scalable and tech-driven business models around the key impact themes, including people, planet, and productivity/tech for good.

The launch of the new strategy marks Lightrock’s first expansion from private equity to public equity investing, following the appointment of a dedicated public equity team by the firm in 2023.

The new strategy will aligns with Lightrock’s proprietary ESG and Impact frameworks, while investing in listed, global, small-cap companies to uncover and exploit market inefficiencies, and potentially taking contrarian viewpoints. The portfolio will include 50-to-75 stocks, focusing on strong fundamentals and solid balance sheets.

Lightrock said that the majority of the €400 million of seed capital has already been invested.

Pal Erik Sjatil, Managing Partner and CEO of Lightrock, said:

“The launch of this strategy demonstrates our dedication to fostering positive change and nurturing mission-driven enterprises in a new asset class, aligning with investors’ increasing demand for approaches that further environmental or social considerations in the global small-cap space. I extend my heartfelt gratitude to our investors for their confidence and support in our journey towards a more sustainable future.”