New York, NY – The Lightsmith Group (“Lightsmith”), a global sustainable private equity firm, is pleased to announce that it has received support from USAID to launch the Systemic Capital for Adaptation Localization and Expansion program, also known as SCALE, a proposed first integrated investment strategy for adaptation and climate resilience.
The SCALE project will explore the launch of a new scalable climate finance platform to provide the full range of equity, credit, and technical assistance to private companies whose technology and solutions address the impacts of climate change globally. Building on the lessons learned from the first private investment fund for adaptation and climate resilience, Lightsmith will map climate resilience companies, engage investors and funders, and design systems for the new platform strategy. SCALE will also explore additional sectors for climate resilience and adaptation solutions. Technology focus areas for SCALE include agricultural analytics, water efficiency and smart water management, resilient food systems, geospatial intelligence, supply chain analytics, catastrophe risk modeling and risk transfer, human health, energy, and support for nature and biodiversity.
The funding was announced during New York Climate Week and builds upon Lightsmith’s leadership in climate adaptation and resilience investment. Founded in 2016, Lightsmith manages the first private equity fund focused exclusively on climate resilience and adaptation based on an investment strategy (sometimes referred to as “CRAFT”, the Climate Resilience and Adaptation Finance and Technology-transfer facility).
Lightsmith is the first organization to receive grant funding through the second round of the USAID Climate Finance for Development Accelerator’s Adaptation Finance Window, which supports the President’s Emergency Plan for Adaptation and Resilience (PREPARE). The Window utilizes catalytic funding from USAID’s Enterprises for Development, Growth, and Empowerment (EDGE) Fund, now totaling $100 million, to leverage business expertise to solve the world’s most intractable challenges.
“Scaling up climate adaptation and resilience investment in developing countries requires new thinking and new strategies,” said USAID Chief Climate Officer Gillian Caldwell. “USAID is pleased to partner with Lightsmith Group through its Adaptation Finance Window to help accelerate innovative private investment strategies for climate adaptation in developing countries.”
According to Lightsmith Group Managing Director Jay Koh, “Investing in climate resilience technologies is an ‘unavoidable opportunity’ potentially as large or larger than global investment in decarbonization. SCALE takes a page from the successful history of decarbonization by exploring how a ‘one stop shop’ integrated platform – a ‘virtual green bank’ for adaptation – can drive investment in climate resilience and adaptation. PREPARE and USAID’s EDGE Fund support the launch of the next generation of climate adaptation investment strategies, particularly for developing countries.”
Lightsmith’s two founding partners, Jay Koh and Sanjay Wagle, each have over 20 years of experience in direct investing at The Carlyle Group and VantagePoint Capital Partners as well as at the U.S. International Development Finance Corporation (DFC), International Finance Corporation (IFC), U.S. Department of Energy, and New York Green Bank. Lightsmith’s global investment team draws from experience at Goldman Sachs, True North Partners, Baring Private Equity Asia, IFC, and the DFC.
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About The Lightsmith Group
The Lightsmith Group is a sustainable private equity firm that invests in companies that address critical societal needs. Lightsmith invests in growth-stage companies providing technology-enabled business services and solutions in the areas of energy, water, food and agriculture, and climate resilience. For more information on The Lightsmith Group, please see: www.lightsmithgp.com.
Media Contact
Sanjay J. Wagle
Managing Director
The Lightsmith Group
Sanjay.wagle@lightsmithgp.com
