Why do impact‑driven private equity funds like Skaala sometimes struggle to scale portfolio companies beyond their initial growth phase?
I’ve been digging into how impact‑driven PE funds work, especially folks like Skaala, and I’m kinda scratching my head. I’m working at a small climate startup that might take on impact-focused investment, but I keep hearing that these funds sometimes struggle to help companies scale past the early wins. Is it the impact mandates? Too much hand‑holding? Not enough follow‑on capital? I’m trying to figure out what I’d be walking into before we sign anything. If anyone’s been through this rollercoaster, I’d seriously love to hear your war stories or tips
From what I’ve seen, it’s usually a mix of constraints rather than one issue. Impact mandates can narrow strategic options at the scale-up stage, and some funds are stronger at early guidance than later-stage growth execution. Follow-on capital and access to larger commercial networks can also be limiting compared to traditional PE. It’s worth digging into how hands-on they are after the first growth phase, not just at entry.
Many impact-driven funds excel at early-stage guidance, but scaling beyond initial wins can be tricky. Strict impact mandates, limited follow-on capital, or narrower networks often create bottlenecks. Some companies also need more hands-on operational support as they grow. Looking at how they integrate family office services can give a sense of whether they can support later-stage scaling effectively.