Reach Alternatives has launched a global impact fund, targeting $20 million in investments. The Reach IV Impact Fund is in collaboration with prominent global partners, TPG and Decarbonisation Partners which is a partnership between BlackRock and Temasek.
The fund’s investment strategy has a focus on climate and conservation, but also other impact areas such as healthcare, education, impact services, food and agriculture, and financial inclusion.
North America is expected to account for almost one-third of the fund’s allocations, while Asia could receive up to 30% of the total investment.
The impact fund will predominantly involve growth equity, venture capital and buyouts.
The fund will adopt a multi-manager approach, with TPG Rise III and Decarbonisation Partners providing underlying management services. These underlying managers are reported to charge a management fee of up to 1.75%. The fund is striving for an internal rate of return (IRR) of ~ 20% p.a.
The emergence of Reach Alternatives Global Impact Fund aligns with the growing trend of family offices increasing their allocations to alternative asset classes, particularly private equity.