According to the Intergovernmental Panel on Climate Change (IPCC), the trajectory – the direction and range – of climate change from now until 2030 to 2040 is essentially unchangeable because of cumulative emissions in the atmosphere, with some climate-related changes now “unavoidable and/or irreversible” (IPCC 2023 Synthesis Report, Section B.3). Scientists now believe that average global temperatures are highly likely to exceed 1.5°C by 2030 regardless of progress on decarbonization or mitigation efforts. Lightsmith believes that the “unavoidable” effects of climate change will generate unanticipated, increasing demand for adaptation and resilience (A&R) solutions across multiple areas of society and economy, including most notably the supply chain and infrastructure and energy as well as agriculture, nature, health, water, real assets, and insurance.

Yet A&R remains significantly under-invested, making up just 5% of tracked global climate finance. Leading institutions including BCG/Temasek, GIC/Bain, and McKinsey now project the A&R investment opportunity will exceed $1 trillion by 2030.

Lightsmith was one of the first investors to identify the adaptation and resilience investment opportunity, completing an initial mapping of A&R market segments in 2017 that totaled $170 billion in annual spending. Lightsmith launched what consider the first private equity fund for adaptation and resilience in 2019 (Climate Policy Initiative, 2022). By 2024, Lightsmith’s same A&R market segments had grown to $480 billion – a ~20% compound annual growth rate that doubled initial projected growth rates.

After nearly a decade of market analysis and eight investments in Fund I [Learn About Our Portfolio], Lightsmith has refined its investment focus to two priority focus areas: Infrastructure & Energy Resilience and Supply Chain Resilience. Infrastructure & Energy Resilience and Supply Chain Resilience are market segments where spending has shifted from reactive disaster-recovery to proactive risk mitigation, resilience, and efficiency. Lightsmith conducts continuous research to identify what focus areas are in the “Near Horizon”, where companies and communities have moved to proactive spending on technologies and solutions that support resilience and adaptation to the increasing risk, impact, and complexity of climate change.

Lightsmith partners with A&R companies that demonstrate:

Proven market traction with significant revenues and customer validation
Capital-efficient models delivering attractive economics and clear paths to profitability
Leadership position with durable competitive advantages in high growth markets
Exceptional teams capable of scaling solutions globally
Measurable impact on climate adaptation and resilience

Lightsmith’s investment strategy combines deep-sector expertise, active partnership, and a proprietary framework for identifying companies positioned to lead the A&R economy.

Pioneer and Standard-Setter

Created the industry-defining CRISP framework in partnership with leading global institutions, providing a comprehensive, peer-reviewed approach to identify relevant A&R companies considering all regions, growth stages, asset classes, and sectors [Learn About CRISP]. Regular contributor at UN Climate Conferences and convener of adaptation and resilience investment thought leaders worldwide.

Focused Specialized Expertise

Nearly a decade analyzing adaptation and resilience technologies, solutions, and investments, with investment experience across multiple A&R segments in both developed and emerging markets and deep knowledge of what drives success in A&R technology companies.

Strategic Value Creation

Active board partnership, extensive customer and partner networks, international expansion support, and a Technical Assistance Facility enabling deployment globally [Learn About Our Technical Assistance Facility].