Impact-focused investment firm Blue Earth Capital has announced the launch of its first dedicated impact secondaries strategy, securing more than $100 million in commitments from institutional investors across Europe and the United States. The move reflects growing demand for liquidity and portfolio flexibility within the maturing impact investing market.

Founded in 2021 and headquartered in Switzerland, Blue Earth Capital invests across private equity, private credit, and multi-asset strategies aimed at addressing major social and environmental challenges while delivering market-rate financial returns. The firm said the new strategy builds on its experience in impact secondaries since 2021 and responds to increasing investor interest in seasoned, de-risked impact assets.

Addressing Liquidity in Impact Investing

Impact secondaries have emerged as a critical tool as the sector scales. By providing exposure to more mature assets, secondaries can reduce blind-pool risk, limit concentration and duration challenges, and support more efficient portfolio construction. Blue Earth said the new strategy is designed to help investors recycle capital while maintaining exposure to high-impact opportunities.

The strategy will invest globally, with a sector focus spanning climate action, circular economy solutions, financial inclusion, healthcare, and education. According to the firm, improving liquidity through secondaries is essential to strengthening confidence and long-term capital formation across the impact ecosystem.

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Investor Backing and Strategic Positioning

Investors in the strategy include Proparco, the Ursimone Wietlisbach Foundation, and Stella, the investment vehicle of a German family foundation. Blue Earth described the mix of development finance and private capital as a strong signal of institutional confidence in the impact secondaries asset class.

Nicolas Muller, Head of Private Equity Partnerships at Blue Earth Capital, said the first close represents a milestone for the firm and the broader market, highlighting liquidity as one of the most persistent structural challenges in impact investing.

Emerging Markets Focus and Blended Finance

A dedicated sleeve within the strategy is focused exclusively on emerging markets, where secondary market activity has historically been limited. This allocation includes a first-loss tranche provided by Proparco and supported by the European Union through the EFSD+, a structure designed to mobilize private capital and improve risk-adjusted returns in underserved regions.

According to Proparco CEO Françoise Lombard, the aim is to strengthen exit pathways, enhance liquidity, and build long-term investor confidence in emerging impact markets, ultimately enabling capital to flow more efficiently to high-need regions.

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Early Transactions Signal Strategy Direction

The initial portfolio includes a GP-led continuation transaction managed by Suma Capital involving Gestcompost, Spain’s largest organic waste treatment company. It also includes an LP-led transaction acquiring stakes in four impact funds operating across India and Africa, underscoring the strategy’s dual focus on environmental infrastructure and social impact in developing economies.

Blue Earth Capital said the new strategy fills a critical gap in the impact sector by combining liquidity solutions with measurable impact outcomes, positioning the firm as a catalytic player as impact investing moves into a more institutional and scalable phase.

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