North Sky Capital

Investor Summary

North Sky Capital was founded in 2000 and is led by Co-CEOs Scott Barrington and Danny Zouber, with key team members including Gretchen Postula as Managing Director and Head of Investor Relations, and Angela Wood as Chief Financial Officer. The firm employs 20 people with 75% involved in investment roles, demonstrating strong investment management capabilities. With offices in Wayzata, Minnesota and Boston, Massachusetts, the firm has deployed $1.6 billion across approximately 200 impact investments spanning energy, infrastructure, transportation, agriculture, education, technology, and healthcare sectors. The firm has been selected for eight consecutive years for ImpactAssets' IA 50 List as an Emeritus Impact Manager and maintains active memberships in key impact investing organizations including founding membership in the Intentional Endowments Network. North Sky Capital manages 15 pooled investment vehicles exclusively for United States persons under discretionary management.

Fund Strategy

North Sky Capital's investment philosophy centers on creating positive social and environmental impact while generating strong financial returns by investing in companies, private equity funds and infrastructure projects that make the world a better place. The firm aligns its investments with the United Nations Sustainable Development Goals (SDGs) and operates as a signatory to the Principles for Responsible Investment. The firm pioneered impact investing by launching North America's first impact fund of funds in 2005, the first sustainable infrastructure fund in 2010, and the world's first impact secondaries fund in 2013. North Sky Capital focuses on two primary strategies: Impact Private Equity Secondaries involving purchasing stakes in impact-driven private companies in cleantech, recycling, circular economy, and healthy living sectors, and Sustainable Infrastructure Directs targeting lower middle-market clean energy, waste, and water projects primarily in North America. The firm complies with EU's SFDR by incorporating ESG considerations into investment analysis and monitoring.

ANNUALIZED SINCE INCEPTION	QUARTERLY	YTD
-	-	-

Executive Summary

North Sky Capital's Q2 2026 commentary highlights strong momentum across its portfolio driven by multiple secular tailwinds. The firm is capitalizing on a historic infrastructure supercycle with approximately $2.3 trillion in announced investments across data centers, semiconductors, and clean energy through 2035, driven by the CHIPS Act, Inflation Reduction Act, and AI compute demand. Several portfolio companies went public in Q2 including Factorial Energy, ZincFive, and SpaceX, signaling improved liquidity conditions after years of suppressed IPO activity. The manager is particularly bullish on battery technology advancements from Tesla and CATL that could dramatically accelerate EV adoption, and on solar energy with utility-scale generation in Texas surpassing coal for the first time in 2026. The secondary market reached $220 billion in 2025 volume, up 42% year-over-year, with venture capital exits to secondaries exceeding IPO exits for the first time. North Sky's infrastructure team is actively deploying capital into EV charging and energy storage assets positioned to benefit from grid modernization and the duck curve phenomenon in ERCOT. While acknowledging risks including AI valuation concerns, geopolitical tensions, and policy uncertainty, the manager remains optimistic that portfolio companies are well-positioned at the intersection of accelerating technological and regulatory tailwinds.

Forward Outlook

The manager is cautiously optimistic heading into the second half of 2026, enthused by the flurry of climatech IPOs signaling a liquidity thaw and the generally favorable market, economic and regulatory landscape. The energy and AI infrastructure supercycle is described as real and accelerating, with battery technology and automation advancing rapidly. Portfolio companies are positioned at the intersection of these tailwinds with real momentum. While acknowledging the world is complex and the investment environment ever-changing, the manager believes North Sky is built to thrive in these conditions through deep domain expertise, ability to see through headline noise, and capacity to deploy capital at attractive valuations when others pull back.

Date	Letter	Tickers	Keywords	Pitches	Quick Takes
Jul 1 2026	2026 Q2	EROC, FAC, FISN, FRVO, LIME, SPCX, XE, ZFIV	Data centers, Energy Transition, EV Batteries, Infrastructure Spending, private credit, semiconductors, Solar, Space	FAC ZFIV LIME	North Sky Capital is capitalizing on the convergence of energy transition, AI infrastructure buildout, and secondary market maturation. Multiple portfolio companies went public in Q2 2026 signaling improved liquidity. The firm is deploying capital into EV charging, energy storage, and battery technology positioned to benefit from a $2.3 trillion infrastructure supercycle. Battery advancements from Tesla and CATL could dramatically accelerate EV adoption and expand addressable markets.
Apr 8 2026	2026 Q1	CVX, CX	AI, clean energy, Energy Storage, impact investing, infrastructure, Natural Gas, Secondaries, Solar	-	North Sky Capital delivered strong Q1 results capitalizing on the $2.3 trillion infrastructure cycle and fragmented impact secondaries market. Clean Growth VII launched with first investment while sustainable infrastructure advanced battery storage and solar projects. Portfolio companies benefit from AI energy demand, commodity price increases, and regulatory shifts. Firm expects continued outperformance in compelling investment environment.
Jan 6 2026	2025 Q4	MSFT, NVDA, TSLA	Clean Technology, Energy Storage, impact investing, infrastructure, private equity, Renewable Energy, Secondary Markets, Solar	-	North Sky Capital rode the 2025 Solar Coaster successfully, returning 25% of 12-year capital calls while capitalizing on AI-driven energy demand surge. Solar and storage dominated new capacity at 85%, exit markets improved significantly, and battery costs continued declining. Multiple 2026 liquidity events queued with strong positioning in fastest-growing electricity markets.
Oct 7 2025	2025 Q3	6503.T, 6902.T, F, GM, LLY, RIVN, TM, TSLA	AI, Data centers, Electric Vehicles, Energy Transition, impact investing, infrastructure, Secondaries, Solar	-	North Sky Capital delivered strong Q3 performance with Clean Growth funds posting valuation gains amid robust impact secondaries and infrastructure deal flow. The firm capitalizes on AI-driven power demand convergence with energy transition, achieving successful portfolio exits while deploying capital in data center cooling and renewable infrastructure. Limited competition in impact secondaries and policy support drive continued growth opportunities.
Jul 28 2025	2025 Q2	6902.T, 9962.T, GE, NNE, NVDA, OKLO	AI, Data centers, Energy Transition, impact investing, infrastructure, nuclear, Secondaries, Trade Policy	-	North Sky Capital sees tremendous opportunity amid 2025's policy and market turbulence. The OBBB provides needed certainty for their infrastructure strategy while maintaining renewable incentives. Their secondaries team benefits from distressed primary impact investors seeking liquidity. With SIF IV closed and ample dry powder, they're positioned to capitalize on energy transition, data center infrastructure, and secondary market dislocations.
Mar 31 2025	2025 Q1	GOOGL, ORCL	AI, Battery Storage, Energy Storage, Energy Transition, impact investing, infrastructure, Renewable Energy, Solar	-	North Sky Capital sees strong opportunities in sustainable infrastructure despite Trump administration policy changes. Energy storage and solar manufacturing are driving growth, with SIF IV's first investment already at 1.41x MOIC. Impact secondaries offer attractive 58% NAV pricing. Portfolio positioning in renewable energy, storage, and specialty solar projects remains resilient to policy headwinds while benefiting from AI-driven energy demand.
Dec 31 2024	2024 Q4	AMZN, GOOGL, META, MSFT, NXT, TSLA	AI, Battery Storage, clean energy, Data centers, Energy Storage, infrastructure, Renewable Energy, Solar	-	North Sky Capital capitalized on record clean energy investment and AI-driven power demand in Q4 2024. Infrastructure team increased battery storage exposure with successful New York project exit. Secondaries delivered strong returns including Ecore sale. Fed rate cuts and pro-business administration create favorable 2025 outlook for energy storage and data center infrastructure investments.
Sep 30 2024	2024 Q3	-	Energy Transition, impact investing, infrastructure, private equity, Secondaries, Solar	-	North Sky Capital advances impact investing through energy transition infrastructure and secondaries. SIF IV launched with NYC energy storage investment while Clean Growth VI delivers strong early returns. Solar dominates new US electricity capacity additions supported by Inflation Reduction Act. Secondary market opportunities expand as traditional exits remain limited, with improved conditions expected in 2025.
Jun 30 2024	2024 Q2	KKR, TPG	Energy Storage, impact investing, infrastructure, private equity, Renewable Energy, Secondaries	-	North Sky Capital delivered strong Q2 performance across sustainable infrastructure and impact secondaries. Infrastructure Fund IV launched with NYC battery storage projects while secondaries fund CG VI closed at $252 million with early 27% capital returns. Declining battery costs and supportive policy create favorable conditions for continued deployment and exits.
Mar 31 2024	2024 Q1	AAPL, AMZN, GOOGL, META, MSFT	AI, Data centers, Energy Transition, infrastructure, Renewables, Storage, sustainability, water	-	North Sky Capital sees tremendous energy transition momentum with $1.7 trillion global investment in 2023. Energy storage tripled to 100 GWh while data centers drive surging electricity demand from AI adoption. The firm expanded storage capacity 76 MW across New York projects. Impact secondaries market favors buyers with continuation vehicles offering attractive risk-return profiles.
Dec 31 2023	2023 Q4	ARM, CART, IFX.DE, KVYO	Electric Vehicles, Energy Transition, impact investing, infrastructure, private equity, Renewable Energy, Secondaries, Solar	-	North Sky Capital is capitalizing on energy transition tailwinds through impact secondaries and sustainable infrastructure. EV adoption accelerating with charging infrastructure investment needs creating opportunities. Solar deployment hitting records despite panel price collapse. Secondary markets offer buyer-friendly conditions as LPs seek liquidity. Strong policy support from IRA driving renewable project economics with 2024 expected to exceed 2023's record deployment.
Sep 30 2023	2023 Q3	AAPL, LAC	Energy Transition, impact investing, infrastructure, Lithium, Secondaries, Solar	-	North Sky Capital is capitalizing on favorable dynamics in sustainable infrastructure and impact secondaries. The Inflation Reduction Act provides once-in-a-lifetime policy support boosting expected IRRs to 14+ percent, while secondaries market stress creates attractive entry points at 40-60% of NAV. The firm's lower middle market focus avoids competition from mega funds in utility-scale projects.
Jun 30 2023	2023 Q2	TM	Battery Storage, Energy Transition, impact investing, infrastructure, IRA, RNG, Secondaries	-	North Sky Capital leverages strong market positioning in impact secondaries and sustainable infrastructure during Q2 2023. With $100 billion of impact fund NAV seeking liquidity and Inflation Reduction Act tailwinds accelerating renewable energy deployment, the firm sees outstanding opportunities ahead despite broader private markets fundraising challenges.
Mar 31 2023	2023 Q1	AMPX	Battery Technology, Energy Transition, impact investing, infrastructure, Renewable Energy, Secondaries	AMPX	North Sky Capital delivered strong Q1 results with major infrastructure exits while expanding their impact secondaries strategy. The firm is well-positioned for the energy transition mega trend, with portfolio company Amprius achieving battery breakthrough technology and infrastructure investments benefiting from IRA implementation and falling lithium prices despite elevated labor costs.
Dec 31 2022	2022 Q4	-	-	-
Sep 30 2022	2022 Q3	-	-	-
Jun 30 2022	2022 Q2	-	-	-
Mar 31 2022	2022 Q1	-	-	-

Date

Letter

Tickers

Keywords

Pitches

Quick Takes

Jul 1 2026

2026 Q2

EROC, FAC, FISN, FRVO, LIME, SPCX, XE, ZFIV

Data centers, Energy Transition, EV Batteries, Infrastructure Spending, private credit, semiconductors, Solar, Space

FAC
ZFIV
LIME

North Sky Capital is capitalizing on the convergence of energy transition, AI infrastructure buildout, and secondary market maturation. Multiple portfolio companies went public in Q2 2026 signaling improved liquidity. The firm is deploying capital into EV charging, energy storage, and battery technology positioned to benefit from a $2.3 trillion infrastructure supercycle. Battery advancements from Tesla and CATL could dramatically accelerate EV adoption and expand addressable markets.

Apr 8 2026

2026 Q1

CVX, CX

AI, clean energy, Energy Storage, impact investing, infrastructure, Natural Gas, Secondaries, Solar

North Sky Capital delivered strong Q1 results capitalizing on the $2.3 trillion infrastructure cycle and fragmented impact secondaries market. Clean Growth VII launched with first investment while sustainable infrastructure advanced battery storage and solar projects. Portfolio companies benefit from AI energy demand, commodity price increases, and regulatory shifts. Firm expects continued outperformance in compelling investment environment.

Jan 6 2026

2025 Q4

MSFT, NVDA, TSLA

Clean Technology, Energy Storage, impact investing, infrastructure, private equity, Renewable Energy, Secondary Markets, Solar

North Sky Capital rode the 2025 Solar Coaster successfully, returning 25% of 12-year capital calls while capitalizing on AI-driven energy demand surge. Solar and storage dominated new capacity at 85%, exit markets improved significantly, and battery costs continued declining. Multiple 2026 liquidity events queued with strong positioning in fastest-growing electricity markets.

Oct 7 2025

2025 Q3

6503.T, 6902.T, F, GM, LLY, RIVN, TM, TSLA

AI, Data centers, Electric Vehicles, Energy Transition, impact investing, infrastructure, Secondaries, Solar

North Sky Capital delivered strong Q3 performance with Clean Growth funds posting valuation gains amid robust impact secondaries and infrastructure deal flow. The firm capitalizes on AI-driven power demand convergence with energy transition, achieving successful portfolio exits while deploying capital in data center cooling and renewable infrastructure. Limited competition in impact secondaries and policy support drive continued growth opportunities.

Jul 28 2025

2025 Q2

6902.T, 9962.T, GE, NNE, NVDA, OKLO

AI, Data centers, Energy Transition, impact investing, infrastructure, nuclear, Secondaries, Trade Policy

North Sky Capital sees tremendous opportunity amid 2025's policy and market turbulence. The OBBB provides needed certainty for their infrastructure strategy while maintaining renewable incentives. Their secondaries team benefits from distressed primary impact investors seeking liquidity. With SIF IV closed and ample dry powder, they're positioned to capitalize on energy transition, data center infrastructure, and secondary market dislocations.

Mar 31 2025

2025 Q1

GOOGL, ORCL

AI, Battery Storage, Energy Storage, Energy Transition, impact investing, infrastructure, Renewable Energy, Solar

North Sky Capital sees strong opportunities in sustainable infrastructure despite Trump administration policy changes. Energy storage and solar manufacturing are driving growth, with SIF IV's first investment already at 1.41x MOIC. Impact secondaries offer attractive 58% NAV pricing. Portfolio positioning in renewable energy, storage, and specialty solar projects remains resilient to policy headwinds while benefiting from AI-driven energy demand.

Dec 31 2024

2024 Q4

AMZN, GOOGL, META, MSFT, NXT, TSLA

AI, Battery Storage, clean energy, Data centers, Energy Storage, infrastructure, Renewable Energy, Solar

North Sky Capital capitalized on record clean energy investment and AI-driven power demand in Q4 2024. Infrastructure team increased battery storage exposure with successful New York project exit. Secondaries delivered strong returns including Ecore sale. Fed rate cuts and pro-business administration create favorable 2025 outlook for energy storage and data center infrastructure investments.

Sep 30 2024

2024 Q3

Energy Transition, impact investing, infrastructure, private equity, Secondaries, Solar

North Sky Capital advances impact investing through energy transition infrastructure and secondaries. SIF IV launched with NYC energy storage investment while Clean Growth VI delivers strong early returns. Solar dominates new US electricity capacity additions supported by Inflation Reduction Act. Secondary market opportunities expand as traditional exits remain limited, with improved conditions expected in 2025.

Jun 30 2024

2024 Q2

KKR, TPG

Energy Storage, impact investing, infrastructure, private equity, Renewable Energy, Secondaries

North Sky Capital delivered strong Q2 performance across sustainable infrastructure and impact secondaries. Infrastructure Fund IV launched with NYC battery storage projects while secondaries fund CG VI closed at $252 million with early 27% capital returns. Declining battery costs and supportive policy create favorable conditions for continued deployment and exits.

Mar 31 2024

2024 Q1

AAPL, AMZN, GOOGL, META, MSFT

AI, Data centers, Energy Transition, infrastructure, Renewables, Storage, sustainability, water

North Sky Capital sees tremendous energy transition momentum with $1.7 trillion global investment in 2023. Energy storage tripled to 100 GWh while data centers drive surging electricity demand from AI adoption. The firm expanded storage capacity 76 MW across New York projects. Impact secondaries market favors buyers with continuation vehicles offering attractive risk-return profiles.

Dec 31 2023

2023 Q4

ARM, CART, IFX.DE, KVYO

Electric Vehicles, Energy Transition, impact investing, infrastructure, private equity, Renewable Energy, Secondaries, Solar

North Sky Capital is capitalizing on energy transition tailwinds through impact secondaries and sustainable infrastructure. EV adoption accelerating with charging infrastructure investment needs creating opportunities. Solar deployment hitting records despite panel price collapse. Secondary markets offer buyer-friendly conditions as LPs seek liquidity. Strong policy support from IRA driving renewable project economics with 2024 expected to exceed 2023's record deployment.

Sep 30 2023

2023 Q3

AAPL, LAC

Energy Transition, impact investing, infrastructure, Lithium, Secondaries, Solar

North Sky Capital is capitalizing on favorable dynamics in sustainable infrastructure and impact secondaries. The Inflation Reduction Act provides once-in-a-lifetime policy support boosting expected IRRs to 14+ percent, while secondaries market stress creates attractive entry points at 40-60% of NAV. The firm's lower middle market focus avoids competition from mega funds in utility-scale projects.

Jun 30 2023

2023 Q2

Battery Storage, Energy Transition, impact investing, infrastructure, IRA, RNG, Secondaries

North Sky Capital leverages strong market positioning in impact secondaries and sustainable infrastructure during Q2 2023. With $100 billion of impact fund NAV seeking liquidity and Inflation Reduction Act tailwinds accelerating renewable energy deployment, the firm sees outstanding opportunities ahead despite broader private markets fundraising challenges.

Mar 31 2023

2023 Q1

AMPX

Battery Technology, Energy Transition, impact investing, infrastructure, Renewable Energy, Secondaries

AMPX

North Sky Capital delivered strong Q1 results with major infrastructure exits while expanding their impact secondaries strategy. The firm is well-positioned for the energy transition mega trend, with portfolio company Amprius achieving battery breakthrough technology and infrastructure investments benefiting from IRA implementation and falling lithium prices despite elevated labor costs.

Dec 31 2022

Sep 30 2022

Jun 30 2022

Mar 31 2022

QUARTER	THEMES	TAGS
2026 Q2	Energy Transition North Sky discusses the infrastructure supercycle driven by clean energy transition accelerated by the Inflation Reduction Act, with trillions in tax credits attracting solar, wind, battery storage, EV manufacturing and clean hydrogen investment. The firm's infrastructure team is evaluating EV charging sector opportunities and SIF IV is finalizing an equity investment in charging stations. Solar and storage accounted for 91% of new generating capacity added to the grid in Q1 2026.	Solar Energy Storage EV Charging Battery Storage Inflation Reduction Act
	EV Batteries The manager highlights significant battery technology advancements including Tesla's dry cathode process that cuts production costs in half and CATL's lithium-air batteries with 1,200 Wh/kg energy density (four times current commercial batteries). These advancements could dramatically accelerate the transition from gas-powered cars to EVs by addressing the main resistance point of heavy batteries needed for long range. Portfolio companies Factorial Energy and ZincFive went public in Q2.	Battery Technology Lithium-air Energy Density Solid State CATL
	Data Centers The document describes an infrastructure supercycle with data centers as a primary driver, noting Northern Virginia hosts more than 35% of global data center capacity. The investment landscape includes hyperscale data center commitments exceeding $250 billion in Texas alone, driven by AI compute demand. Portfolio company ERock provides microgrids for data centers and went public in Q2 2026.	AI Infrastructure Hyperscale Power Demand Grid Infrastructure
	Private Credit North Sky's secondary market business is positioned to provide liquidity during windows when macro headwinds delay exits but underlying portfolio value remains intact. The global private equity secondary market hit $220 billion in 2025 volume, up 42% from 2024, and is projected to reach $250 billion in 2026. Venture capital exits to secondary funds exceeded IPO exits for the first time ever on an annualized basis, signaling secondaries are now a significant exit pathway.	Secondary Market Liquidity Exit Pathway PE Secondaries
	Solar The US added 7.8 GW of solar in Q1 2026 and crossed 6 million cumulative installations. Utility-scale solar generation in ERCOT (Texas) will surpass coal for the first time in 2026 at 78 billion kWh versus 60 billion kWh from coal. Texas is expected to account for roughly 40% of all new US solar capacity additions in 2026. New York and Maryland enacted pro-solar legislation with direct benefits to portfolio companies.	Utility-scale Solar ERCOT Solar Generation State Policy
	Semiconductors The CHIPS and Science Act has directed more than $52 billion in direct funding and loan guarantees to domestic semiconductor manufacturing. Major investments include TSMC Arizona ($165 billion campus, $6.6 billion in federal funding), Intel across multiple states ($7.9 billion), Samsung Texas ($6.4 billion), and Micron ($6.1 billion). Arizona has attracted the largest foreign direct investment in a greenfield project in US history with TSMC's Phoenix campus.	CHIPS Act Semiconductor Manufacturing Reshoring TSMC
	Space The Artemis II lunar mission launched April 1, 2026, marking the first crewed flight beyond low Earth orbit since Apollo 17 in 1972. The mission reinvigorated the NASA space program and spurred interest in space exploration including moonbases, data centers in space, and Mars missions. North Sky has invested in adjacent areas like rocket recovery/reuse, last mile delivery, battery tech for aerospace, aircraft parts and wind turbine maintenance by drone.	Artemis Lunar Mission Aerospace Space Exploration
	Electric Vehicles US EV sales rose roughly 13x from 115,000 units in 2015 to 1.6 million in 2024, a 30% CAGR, before easing to 1.5 million in 2025 as the $7,500 federal tax credit phased out. Nearly 90 EV models are now available, up from fewer than 30 in 2020. The manager expects 2026 will mark a shift from single family garage chargers to apartment/multifamily and workplace charging infrastructure, and from rural DC fast charging to more capital efficient urban level 2 charging.	EV Adoption Charging Infrastructure Tax Credit EV Market Share
2026 Q1	AI AI is driving unprecedented energy demand for data centers and compute infrastructure. Crusoe provides renewable-powered AI infrastructure and partnered with Redwood Materials for the world's largest second-life battery deployment using solar power and repurposed EV batteries to power off-grid AI data centers. The modular nature allows for rapid deployment in months rather than years-long construction builds.	Data Centers Energy Demand Infrastructure Compute Deployment
	Energy Storage Battery storage projects continue advancing with favorable pricing due to cancellation of IEEPA tariffs. North Sky's New York battery storage portfolio secured additional demand load management awards enhancing revenue projections. Domestic battery storage project deployments are expected to require over $25 billion in capital in 2026, signaling continued sector growth.	Battery Storage Grid Storage Energy Infrastructure Revenue Deployment
	Solar Solar accounted for 54% of new capacity additions in the US in 2025. SIF III acquired a portfolio of five Pennsylvania distributed solar generation assets totaling 20 MWs of capacity with construction beginning in June. Pennsylvania is an attractive new market given stable solar power policies and proven ability for developers to procure long-term utility offtake agreements.	Solar Renewable Energy Capacity Development Offtake
	Infrastructure Spending North Sky continues to benefit from the $2.3 trillion infrastructure investment cycle spanning 2020-2035, driven by convergence of AI compute demand, domestic semiconductor reshoring under the CHIPS and Science Act, the Inflation Reduction Act and the Bipartisan Infrastructure Law. This represents the largest infrastructure investment cycle in US history.	Infrastructure Investment Policy Spending Cycle
	Energy Transition The energy transition continues with steady improvements across smart grid technology, solar panel efficiency, battery chemistry capable of charging EVs in three minutes, and progress on small module reactors and nuclear fusion. Rising energy demand from AI, data centers, EVs, heat pumps and industrial reshoring is driving announced restarts of old nuclear power plants.	Energy Transition Clean Energy Technology Nuclear Efficiency
	Natural Gas Natural gas prices increased globally, especially in Europe and Asia. The RNG industry continued steady expansion with North Sky's SoCal Biomethane RNG project becoming the first operating project to receive a long-term gas offtake agreement under California SB 1440. PivotBio is positioned to benefit from natural gas price increases as its products substitute for fertilizer derived from natural gas.	Natural Gas RNG Pricing Offtake Substitution
2025 Q4	Energy Transition Solar and storage dominated renewable generation with 85% of new US capacity. Solar installed 11.7 GW in Q3 (+20% YoY) with strong momentum in Republican-led states. Battery prices fell to $108/kWh from $827 in 2013, driven by competition and LFP chemistry adoption.	Solar Storage Batteries Renewables Grid
	AI AI driving parabolic increase in datacenter energy demand. Microsoft's Fairwater datacenter will consume 3.3 GWs when operational - more than Los Angeles. Global energy demand ticking up after moving sideways for a decade due to EVs and AI infrastructure needs.	Datacenters Energy Demand Infrastructure
	Electric Vehicles EV tax incentives curtailed by July's legislation causing Q3 surge before September deadline, followed by Q4 drop. However, EV charging infrastructure remained consistent with over 230,000 public chargers deployed and increasing utilization. Tesla achieved zero-disengagement cross-country autonomous drive.	EV Charging Autonomous Driving Infrastructure
	Private Credit Secondary market volume reached $165B through Q3 2025, expected to hit $210B for full year. Goldman Sachs survey shows 72% of family offices investing in secondaries (up from 60% in 2023), valuing shorter duration and access to mature portfolios.	Secondaries Family Offices Alternative Assets
	Critical Minerals Rice University chemist developed breakthrough flash Joule heating process to recover rare earth elements from e-waste, cutting energy use by 87%. China dominates 90% of global REE processing, creating supply vulnerabilities. Commercial production targeted for early 2026.	Rare Earths Recycling Supply Chain China
2025 Q3	AI The letter discusses AI as a transformative force affecting every sector they invest in, accelerating growth and enhancing efficiency. AI is driving massive data center power demands, with Deloitte forecasting 30x increase in power usage by 2035. Portfolio company Crusoe Energy is addressing AI data center power needs through innovative battery solutions.	Data Centers Power Technology Infrastructure Growth
	Energy Transition Renewable energy now provides roughly 25% of total US power generation, with solar expected to make up more than half of all new generating capacity added in 2025. The letter highlights technological breakthroughs in batteries, solar deployment innovations like IKEA's balcony solar kits, and the sector's evolution from alternative energy to mainstream power generation.	Solar Renewable Battery Grid Clean Energy
	Electric Vehicles EVs are becoming the low-cost choice for many buyers compared to gas-powered vehicles, with new affordable models under $30k and used EVs attracting buyers due to fuel and maintenance costs roughly half of gas vehicles. The letter discusses progress in autonomous driving with Waymo, Tesla, and others expanding robotaxi services.	Autonomous Battery Mobility Tesla Transportation
	Energy Storage Energy storage is counting as more than 20% of new power generation additions in 2025. The letter highlights breakthrough battery technologies including LG Energy Solution's lithium metal battery advancement and Tesla's Megapack3 system capable of 5 MWh of power, used in North Sky's infrastructure projects.	Battery Grid Infrastructure Technology Power
	Data Centers Data centers are driving significant power demand increases, requiring sustainable backup power solutions beyond traditional diesel generators. The letter discusses how renewable energy construction timelines of less than 2 years versus 5 years for natural gas plants make renewables the fastest way to meet AI data center power demands.	AI Power Infrastructure Renewable Technology
2025 Q2	Energy Transition The OBBB largely retains existing incentives for battery energy storage and maintains federal support for renewables with 30-50% Investment Tax Credits. The renewable energy landscape has evolved driven by surging power demand from data centers and electric vehicle adoption, onshoring of solar panel supply, and supply constraints for traditional energy sources. North Sky's infrastructure team is seeing opportunities in energy storage, community solar, data center-driven power demand and renewable fuels.	Solar Energy Storage Renewable Components Battery Manufacturers Wind
	Data Centers Plans to build new data centers are front of mind for developers with 130+ GWs announced in top 15 states. Data centers can have 25-30% swings in demand over 3-5 minutes, creating grid integration challenges. AI is rapidly changing business operations and increasing power demands worldwide, spurring construction of new energy generation and data centers globally.	AI Cloud Power Equipment Energy Storage Grid Upgrade
	Trade Policy Trump imposed tariffs on imports from Mexico, Canada and China on February 1, followed by a 10% baseline tariff on all countries plus higher rates for nations with trade surpluses. The S&P 500 dropped 12% from the big tariff announcement but recovered as trade negotiations progressed. Major trade deals were signed with China, UK and Vietnam while negotiations continue with EU, India, Japan, Mexico and Canada.	Tariffs Trade Down Industrial Policy Onshoring Sanctions
	Infrastructure Spending America needs significant additional infrastructure investments to repair outdated infrastructure from mid-20th century building programs, meet rising electricity demand from AI and data centers, and properly handle various types of waste. China invested $85 billion in grid transmission expansion and modernization, highlighting the competitive need for Western infrastructure investment to win the AI race.	Grid Upgrade Power Equipment Construction Transmission Energy Storage
	Nuclear Large scale nuclear plants have taken a decade or more to construct due to permitting and regulatory delays. The most recent nuclear plant came online in Georgia in July 2023 after 15 years and $18 billion. Small module reactors are being considered for powering data centers, with companies like NuScale, Oklo, TerraPower offering solutions. China has nearly tripled its nuclear capacity to 53 GW with 23 more plants under construction.	Uranium Power Equipment Energy Transition Utilities Construction
	Impact Secondaries The buyer's market continues for impact secondaries with high-quality impact assets available at meaningful discounts to net asset value. Many primary impact investors have struggled over the last five years due to rapid interest rate increases, creating opportunities. About $1 trillion was committed to impact funds over the last decade, with many funds now in the sweet spot for secondary transactions.	Private Credit Alternative Asset Managers Capital Markets Credit Stress Liquidity
2025 Q1	Energy Storage North Sky allocated more capital to battery storage in Q1 than any other sector. Batteries are increasingly playing a major role in the US electricity grid, storing electrons generated from solar and wind power and then dispatching them as needed. The US installed 12.3 GWs of new energy storage assets in 2024, with Texas overtaking California in new storage additions.	Batteries Grid Storage Energy Storage Battery Storage Grid-tied
	Solar More than half of American solar installations in Q1 are likely using panels manufactured within the US. The US has now surpassed 50 GW of domestic panel manufacturing capacity, over a 7x increase since 2020, and is now the world's third-largest producer. Approximately 50 GWs of solar power capacity was installed across the US in 2024.	Solar Panels Domestic Manufacturing Solar Power Community Solar Solar Development
	Energy Transition The energy transition is a global, secular trend that underpins North Sky's SIF IV strategy. In 2024, there was over $2 trillion invested globally in the energy transition, with rapid growth in such investments over the last five years. Global demand for energy is rising due to population growth, economic growth, urbanization, and the rapid growth of artificial intelligence.	Energy Transition Renewable Energy Clean Energy Sustainable Infrastructure Global Investment
	AI Batteries help power the large number of data centers that are being built to provide the computing power required by increasingly sophisticated artificial intelligence systems like ChatGPT, OpenAI, Claude and Grok3. The rapid growth of artificial intelligence is driving global demand for energy, particularly for data center power consumption.	Artificial Intelligence Data Centers Computing Power AI Systems Power Consumption
	Data Centers Crusoe Energy's AI-optimized data centers can use renewable power or waste natural gas that would otherwise be flared from oil fields. Crusoe is building the first data center as part of the $500 billion Stargate Project between Open AI, SoftBank and Oracle. Data centers require substantial computing power for AI systems.	Data Centers AI-optimized Computing Infrastructure Stargate Project Power Requirements
	EV Charging SIF IV signed a term sheet for its third investment, a portfolio of EV charging projects in a region that is not dependent on ongoing federal incentives. These direct-current fast charging projects will immediately recoup up to 90% of installation costs via local programs, with opportunities to deploy complementary battery storage systems at each charging site.	EV Charging Fast Charging Electric Vehicle Infrastructure Charging Networks Battery Storage
2024 Q4	Energy Storage Infrastructure funds increased exposure to lithium-ion battery storage more than any other renewable sector in 2024. Recent validation through December liquidity event for mature storage projects in New York. Data centers need massive battery systems to store electrons from intermittent sources like wind or solar for 24/7 dispatch.	Battery Storage Lithium-ion Grid Storage Data Centers Renewable Energy
	Data Centers Growth in data center computing demand driven by AI and cryptocurrency mining shift. McKinsey believes energy demand from data centers will grow from 4% of total US electricity consumption today to 11-12% by 2030. Hyperscalers taking all-of-the-above approach to powering datacenters including nuclear power.	AI Computing Power Demand Hyperscalers Nuclear
	Energy Transition Clean energy and transportation investment in USA reached record-setting $71B in Q3 2024. Solar power made impressive headlines with first commercial sales of perovskite solar panels that are 20% more powerful than conventional silicon modules. Energy transition now happening within a growing total market driven by computing and EV demand.	Clean Energy Solar Perovskite Transportation Investment
	AI Massive leaps forward in AI during the quarter. AI and electric vehicles require significant electricity, creating investment opportunities. Various studies predict AI power usage will add between 1.5-4.0% load demand to the grid by 2030, equating to about 15-40 GWs of additional needed capacity.	Artificial Intelligence Power Demand Grid Computing Electricity
	Renewable Energy Renewable natural gas can play important role in decarbonizing energy production from North American utilities. Made significant progress at all RNG project sites including East Coast waste-to-RNG facilities and West Coast approval under California Senate Bill 1440. State-level Renewable Portfolio Standards continue to supplement federal policy.	RNG Decarbonization Utilities California Portfolio Standards
2024 Q3	Energy Transition Solar accounted for 67% of all new electricity generation capacity in H1 2024, with the US solar market installing 9.4 GW in Q2 2024. US solar module manufacturing capacity expanded by over 10 GW to 31.3 GW in Q2 2024 driven by Inflation Reduction Act incentives. The US solar industry is on track to install over 250 GW in the next 5 years.	Solar Energy Storage Renewable Natural Gas Community Solar Inflation Reduction Act
	Infrastructure Spending Infrastructure has outperformed private credit, private equity and real estate over the last three years due to massive global push for energy transition and public policy support. Institutional investors have been increasing their allocations to infrastructure. The middle market segment is attracting particular attention with relative underallocation of capital representing considerable opportunity.	Infrastructure Middle Market Energy Storage Renewable Energy Public Policy
	Private Credit Secondary sales volume is up 58% in H1 2024 compared to prior year. It is a good time to be a secondary buyer as IPO and M&A exits remain muted, spurring investors to tap into the secondary market to generate liquidity. The ratio of private equity exits to new investments was 0.36x for H1 2024.	Secondaries Liquidity Exit Environment Continuation Vehicles GP-led
2024 Q2	Energy Storage Battery energy storage projects are expanding in NYC area for peak load shaving and demand response. Chinese battery storage system prices dropped 45% in Q1'24 versus Q1'23, enabling developers to capture higher project values. ESS joint venture with Orenda added 35 megawatts of development pipeline.	Battery Grid Storage Lithium Peak Load
	Energy Transition Sustainable Infrastructure Fund IV targets environmental infrastructure, clean power and grid enhancements. Active pipeline includes renewable natural gas, community solar, green hydrogen, geothermal, microgrids, lithium carbonate processing, waste-to-value projects and carbon sequestration.	Renewable Clean Power Hydrogen Geothermal Carbon
	Infrastructure Spending Policy momentum building for sustainable infrastructure throughout the United States. New York State updated Energy Storage Roadmap to expand battery storage deployment goals. US Treasury continued rulemaking activities to finalize Inflation Reduction Act incentives for renewable energy projects.	Policy IRA Deployment Federal State
	Private Credit Impact secondaries market has expanded to mirror all investment strategies of traditional private equity market including private credit, mezzanine, buyout and infrastructure funds. Impact managers have raised $124 billion across 382 funds in the last five years.	Secondaries Impact Fundraising Alternative Credit
2024 Q1	Energy Transition Global energy transition investment topped $1.7 trillion in 2023, with visible signs of transformation across energy, transportation, and technology sectors. The last four years have brought astonishing growth in installed solar and wind capacity, EV sales, renewable natural gas production, and demand for raw materials like copper and silver.	Solar Wind Renewables Biofuels Grid
	Energy Storage Energy storage installations tripled in 2023 to almost 100 GWh worldwide, with 2024 expected to be even higher due to improving economies of scale, falling costs, and strong utility demand. Fund III expanded potential capacity by 76 MW across 16 new projects in the New York City area.	Batteries Grid Storage Peak Load Utilities Interconnection
	Data Centers Growing electricity demand from data centers driven by AI adoption is notable, with McKinsey projecting demand growth from 19 GW in 2023 to 32 GW by 2029. Boston Consulting Group expects US data center electricity usage to triple from 2.5% to 7.5% of domestic consumption by 2030.	AI Computing Electricity Infrastructure Cloud
	Water Investment opportunities span water desalination, wastewater treatment, re-use/recovery and remediation. Water remediation for PFAS removal represents a multi-billion dollar opportunity, while water re-use/recovery is critical for sustainable cities in arid geographies like the US Southwest.	Desalination PFAS Remediation Reuse Southwest
2023 Q4	Electric Vehicles Annual EV sales in the USA crossed 1 million units with EVs, hybrids and plug-in hybrids accounting for 17.7% of new light-duty vehicle sales in Q3. Growth attributed to increasing consumer acceptance, greater charging station availability, IRA tax credits and declining prices due to economies of scale.	EV Sales Charging Infrastructure IRA Credits Consumer Adoption Price Decline
	EV Charging The US needs to quadruple EV chargers by 2025 and grow eight-fold by 2030. Manufacturers announced over $500 million in investments for Buy American-compliant EV chargers across 40+ plants. Related opportunities include onsite energy storage, solar, transmission lines and load balancing technology.	Charging Stations Infrastructure Investment Buy American Energy Storage Grid Upgrade
	Solar Solar panel prices hit lowest point ever at $0.128 per watt due to oversupply, with prices expected to drop to $0.10 by year-end 2024. Despite 400GWs of new installations worldwide, manufacturers face low/no profitability. 2023 expected to be record year for US solar deployment with steady growth projected through 2028.	Panel Prices Oversupply Record Deployment Manufacturing Growth Forecast
	Energy Storage Energy storage projects are benefiting from strong policy support including the Inflation Reduction Act. Storage is identified as a key area for future investment alongside community solar and renewable natural gas, with battery prices notably lower than six months ago.	Battery Prices Policy Support Grid Storage IRA Benefits Investment Focus
	Renewable Natural Gas Rhode Island Bioenergy Facility injected renewable gas into local pipeline for first time. EPA's new Renewable Fuel Standard requirements support 25% annual growth in RNG production for next two years. Sharp increase in utility procurement of RNG observed.	RNG Production Pipeline Injection EPA Standards Utility Procurement Growth Targets
	Infrastructure Spending All renewable projects benefiting from strong local, state and federal policy support including the Inflation Reduction Act. Important guidance issued on made in America requirements and low-moderate income tax credits, with various adders stackable on top of 30% base tax credit.	IRA Support Tax Credits Made in America LMI Credits Policy Guidance
	Private Credit Liquidity constrained institutional investors are selling assets to secondary funds to create liquidity needed for new GP commitments. This creates a buyer's market for secondaries with willing sellers, ample supply and attractive pricing, especially for impact assets with little competition.	Liquidity Crunch Secondary Sales Buyer's Market Impact Assets GP Fundraising
2023 Q3	Energy Transition North Sky is bullish on sustainable infrastructure thanks to the once-in-a-lifetime uplift from the Inflation Reduction Act. They focus on renewable natural gas, community solar, energy storage and other premium revenue opportunities in the lower middle market where there is less competition compared to utility-scale projects.	Solar Energy Storage Renewable Natural Gas IRA Infrastructure
	Lithium A newly discovered lithium deposit in Northern Nevada may be the biggest in the world, worth nearly $1.4 trillion according to Lithium Americas Corp. The deposit may contain 20-40 million tons of lithium compared to current global demand of about two million tons per year.	Battery Metals Mining Nevada Domestic Supply
	Private Credit Market dynamics for secondaries are favorable, especially for specialist impact strategies. North Sky is seeing LP-led transactions at 40-60% of NAV for impact secondaries compared to 57-70% for traditional funds, and GP-led solutions at 82% of NAV for multi-asset deals.	Secondaries Impact Investing NAV Discounts Liquidity
2023 Q2	Energy Transition The firm is actively investing in renewable energy infrastructure including RNG projects, battery storage, and solar development. The Inflation Reduction Act is providing significant tailwinds with tax credit bonuses and transferability provisions accelerating deployment.	Renewable Energy RNG Battery Storage Solar IRA
	Infrastructure Spending North Sky's infrastructure team is focused on sustainable infrastructure projects including wastewater treatment facilities, renewable natural gas production, and battery storage systems that benefit from federal policy support.	Sustainable Infrastructure Wastewater Public-Private Partnership Federal Support
	Private Credit The firm operates impact secondaries strategy targeting approximately $100 billion of unrealized NAV in impact funds. With IPO and M&A markets constrained, secondaries provide liquidity for existing investors creating buying opportunities.	Impact Secondaries Liquidity NAV GP-led Transactions
2023 Q1	Energy Transition Over $1 trillion was invested in decarbonizing energy in 2022, with renewable energy and EVs accounting for most of this investment. The firm sees this as a mega trend driving their investment strategy across multiple portfolio companies and infrastructure projects.	Decarbonization Renewables EVs Clean Energy IRA
	Battery Supply Chain Portfolio company Amprius achieved a breakthrough with lithium-ion batteries delivering double the energy density of Tesla, Rivian and Ford EVs. Lithium carbonate prices dropped sharply in Q1 2023 from over 500,000 RMB/ton to just over 250,000 RMB/ton, benefiting energy storage developers.	Lithium Energy Storage Battery Technology Supply Chain
	Infrastructure Spending The firm emphasizes the need to upgrade aging infrastructure including rail, bridges, highways, airports, and energy distribution. They also highlight creating new infrastructure for EV battery recycling, solar panel recycling, and efficient shipping methods like hyperloops.	Infrastructure IRA Transmission Grid Upgrade
	Private Credit The impact secondaries market represents a vast untapped opportunity with only 0.1% of impact capital raised going to dedicated impact secondary funds versus 3.7% for traditional secondaries. The firm estimates $209 billion of potential market opportunity for impact secondary transactions.	Secondaries Impact Investing Alternative Assets

QUARTER

THEMES

Energy Transition

North Sky discusses the infrastructure supercycle driven by clean energy transition accelerated by the Inflation Reduction Act, with trillions in tax credits attracting solar, wind, battery storage, EV manufacturing and clean hydrogen investment. The firm's infrastructure team is evaluating EV charging sector opportunities and SIF IV is finalizing an equity investment in charging stations. Solar and storage accounted for 91% of new generating capacity added to the grid in Q1 2026.

Solar Energy Storage EV Charging Battery Storage Inflation Reduction Act

EV Batteries

The manager highlights significant battery technology advancements including Tesla's dry cathode process that cuts production costs in half and CATL's lithium-air batteries with 1,200 Wh/kg energy density (four times current commercial batteries). These advancements could dramatically accelerate the transition from gas-powered cars to EVs by addressing the main resistance point of heavy batteries needed for long range. Portfolio companies Factorial Energy and ZincFive went public in Q2.

Battery Technology Lithium-air Energy Density Solid State CATL

Data Centers

The document describes an infrastructure supercycle with data centers as a primary driver, noting Northern Virginia hosts more than 35% of global data center capacity. The investment landscape includes hyperscale data center commitments exceeding $250 billion in Texas alone, driven by AI compute demand. Portfolio company ERock provides microgrids for data centers and went public in Q2 2026.

AI Infrastructure Hyperscale Power Demand Grid Infrastructure

Private Credit

North Sky's secondary market business is positioned to provide liquidity during windows when macro headwinds delay exits but underlying portfolio value remains intact. The global private equity secondary market hit $220 billion in 2025 volume, up 42% from 2024, and is projected to reach $250 billion in 2026. Venture capital exits to secondary funds exceeded IPO exits for the first time ever on an annualized basis, signaling secondaries are now a significant exit pathway.

Secondary Market Liquidity Exit Pathway PE Secondaries

Solar

The US added 7.8 GW of solar in Q1 2026 and crossed 6 million cumulative installations. Utility-scale solar generation in ERCOT (Texas) will surpass coal for the first time in 2026 at 78 billion kWh versus 60 billion kWh from coal. Texas is expected to account for roughly 40% of all new US solar capacity additions in 2026. New York and Maryland enacted pro-solar legislation with direct benefits to portfolio companies.

Utility-scale Solar ERCOT Solar Generation State Policy

Semiconductors

The CHIPS and Science Act has directed more than $52 billion in direct funding and loan guarantees to domestic semiconductor manufacturing. Major investments include TSMC Arizona ($165 billion campus, $6.6 billion in federal funding), Intel across multiple states ($7.9 billion), Samsung Texas ($6.4 billion), and Micron ($6.1 billion). Arizona has attracted the largest foreign direct investment in a greenfield project in US history with TSMC's Phoenix campus.

CHIPS Act Semiconductor Manufacturing Reshoring TSMC

Space

The Artemis II lunar mission launched April 1, 2026, marking the first crewed flight beyond low Earth orbit since Apollo 17 in 1972. The mission reinvigorated the NASA space program and spurred interest in space exploration including moonbases, data centers in space, and Mars missions. North Sky has invested in adjacent areas like rocket recovery/reuse, last mile delivery, battery tech for aerospace, aircraft parts and wind turbine maintenance by drone.

Artemis Lunar Mission Aerospace Space Exploration

Electric Vehicles

US EV sales rose roughly 13x from 115,000 units in 2015 to 1.6 million in 2024, a 30% CAGR, before easing to 1.5 million in 2025 as the $7,500 federal tax credit phased out. Nearly 90 EV models are now available, up from fewer than 30 in 2020. The manager expects 2026 will mark a shift from single family garage chargers to apartment/multifamily and workplace charging infrastructure, and from rural DC fast charging to more capital efficient urban level 2 charging.

EV Adoption Charging Infrastructure Tax Credit EV Market Share

2026 Q1

AI

AI is driving unprecedented energy demand for data centers and compute infrastructure. Crusoe provides renewable-powered AI infrastructure and partnered with Redwood Materials for the world's largest second-life battery deployment using solar power and repurposed EV batteries to power off-grid AI data centers. The modular nature allows for rapid deployment in months rather than years-long construction builds.

Data Centers Energy Demand Infrastructure Compute Deployment

Energy Storage

Battery storage projects continue advancing with favorable pricing due to cancellation of IEEPA tariffs. North Sky's New York battery storage portfolio secured additional demand load management awards enhancing revenue projections. Domestic battery storage project deployments are expected to require over $25 billion in capital in 2026, signaling continued sector growth.

Battery Storage Grid Storage Energy Infrastructure Revenue Deployment

Solar

Solar accounted for 54% of new capacity additions in the US in 2025. SIF III acquired a portfolio of five Pennsylvania distributed solar generation assets totaling 20 MWs of capacity with construction beginning in June. Pennsylvania is an attractive new market given stable solar power policies and proven ability for developers to procure long-term utility offtake agreements.

Solar Renewable Energy Capacity Development Offtake

Infrastructure Spending

North Sky continues to benefit from the $2.3 trillion infrastructure investment cycle spanning 2020-2035, driven by convergence of AI compute demand, domestic semiconductor reshoring under the CHIPS and Science Act, the Inflation Reduction Act and the Bipartisan Infrastructure Law. This represents the largest infrastructure investment cycle in US history.

Infrastructure Investment Policy Spending Cycle

Energy Transition

The energy transition continues with steady improvements across smart grid technology, solar panel efficiency, battery chemistry capable of charging EVs in three minutes, and progress on small module reactors and nuclear fusion. Rising energy demand from AI, data centers, EVs, heat pumps and industrial reshoring is driving announced restarts of old nuclear power plants.

Energy Transition Clean Energy Technology Nuclear Efficiency

Natural Gas

Natural gas prices increased globally, especially in Europe and Asia. The RNG industry continued steady expansion with North Sky's SoCal Biomethane RNG project becoming the first operating project to receive a long-term gas offtake agreement under California SB 1440. PivotBio is positioned to benefit from natural gas price increases as its products substitute for fertilizer derived from natural gas.

Natural Gas RNG Pricing Offtake Substitution

2025 Q4

Energy Transition

Solar and storage dominated renewable generation with 85% of new US capacity. Solar installed 11.7 GW in Q3 (+20% YoY) with strong momentum in Republican-led states. Battery prices fell to $108/kWh from $827 in 2013, driven by competition and LFP chemistry adoption.

Solar Storage Batteries Renewables Grid

AI

AI driving parabolic increase in datacenter energy demand. Microsoft's Fairwater datacenter will consume 3.3 GWs when operational - more than Los Angeles. Global energy demand ticking up after moving sideways for a decade due to EVs and AI infrastructure needs.

Datacenters Energy Demand Infrastructure

Electric Vehicles

EV tax incentives curtailed by July's legislation causing Q3 surge before September deadline, followed by Q4 drop. However, EV charging infrastructure remained consistent with over 230,000 public chargers deployed and increasing utilization. Tesla achieved zero-disengagement cross-country autonomous drive.

EV Charging Autonomous Driving Infrastructure

Private Credit

Secondary market volume reached $165B through Q3 2025, expected to hit $210B for full year. Goldman Sachs survey shows 72% of family offices investing in secondaries (up from 60% in 2023), valuing shorter duration and access to mature portfolios.

Secondaries Family Offices Alternative Assets

Critical Minerals

Rice University chemist developed breakthrough flash Joule heating process to recover rare earth elements from e-waste, cutting energy use by 87%. China dominates 90% of global REE processing, creating supply vulnerabilities. Commercial production targeted for early 2026.

Rare Earths Recycling Supply Chain China

2025 Q3

AI

The letter discusses AI as a transformative force affecting every sector they invest in, accelerating growth and enhancing efficiency. AI is driving massive data center power demands, with Deloitte forecasting 30x increase in power usage by 2035. Portfolio company Crusoe Energy is addressing AI data center power needs through innovative battery solutions.

Data Centers Power Technology Infrastructure Growth

Energy Transition

Renewable energy now provides roughly 25% of total US power generation, with solar expected to make up more than half of all new generating capacity added in 2025. The letter highlights technological breakthroughs in batteries, solar deployment innovations like IKEA's balcony solar kits, and the sector's evolution from alternative energy to mainstream power generation.

Solar Renewable Battery Grid Clean Energy

Electric Vehicles

EVs are becoming the low-cost choice for many buyers compared to gas-powered vehicles, with new affordable models under $30k and used EVs attracting buyers due to fuel and maintenance costs roughly half of gas vehicles. The letter discusses progress in autonomous driving with Waymo, Tesla, and others expanding robotaxi services.

Autonomous Battery Mobility Tesla Transportation

Energy Storage

Energy storage is counting as more than 20% of new power generation additions in 2025. The letter highlights breakthrough battery technologies including LG Energy Solution's lithium metal battery advancement and Tesla's Megapack3 system capable of 5 MWh of power, used in North Sky's infrastructure projects.

Battery Grid Infrastructure Technology Power

Data Centers

Data centers are driving significant power demand increases, requiring sustainable backup power solutions beyond traditional diesel generators. The letter discusses how renewable energy construction timelines of less than 2 years versus 5 years for natural gas plants make renewables the fastest way to meet AI data center power demands.

AI Power Infrastructure Renewable Technology

2025 Q2

Energy Transition

The OBBB largely retains existing incentives for battery energy storage and maintains federal support for renewables with 30-50% Investment Tax Credits. The renewable energy landscape has evolved driven by surging power demand from data centers and electric vehicle adoption, onshoring of solar panel supply, and supply constraints for traditional energy sources. North Sky's infrastructure team is seeing opportunities in energy storage, community solar, data center-driven power demand and renewable fuels.

Solar Energy Storage Renewable Components Battery Manufacturers Wind

Data Centers

Plans to build new data centers are front of mind for developers with 130+ GWs announced in top 15 states. Data centers can have 25-30% swings in demand over 3-5 minutes, creating grid integration challenges. AI is rapidly changing business operations and increasing power demands worldwide, spurring construction of new energy generation and data centers globally.

AI Cloud Power Equipment Energy Storage Grid Upgrade

Trade Policy

Trump imposed tariffs on imports from Mexico, Canada and China on February 1, followed by a 10% baseline tariff on all countries plus higher rates for nations with trade surpluses. The S&P 500 dropped 12% from the big tariff announcement but recovered as trade negotiations progressed. Major trade deals were signed with China, UK and Vietnam while negotiations continue with EU, India, Japan, Mexico and Canada.

Tariffs Trade Down Industrial Policy Onshoring Sanctions

Infrastructure Spending

America needs significant additional infrastructure investments to repair outdated infrastructure from mid-20th century building programs, meet rising electricity demand from AI and data centers, and properly handle various types of waste. China invested $85 billion in grid transmission expansion and modernization, highlighting the competitive need for Western infrastructure investment to win the AI race.

Grid Upgrade Power Equipment Construction Transmission Energy Storage

Nuclear

Large scale nuclear plants have taken a decade or more to construct due to permitting and regulatory delays. The most recent nuclear plant came online in Georgia in July 2023 after 15 years and $18 billion. Small module reactors are being considered for powering data centers, with companies like NuScale, Oklo, TerraPower offering solutions. China has nearly tripled its nuclear capacity to 53 GW with 23 more plants under construction.

Uranium Power Equipment Energy Transition Utilities Construction

Impact Secondaries

The buyer's market continues for impact secondaries with high-quality impact assets available at meaningful discounts to net asset value. Many primary impact investors have struggled over the last five years due to rapid interest rate increases, creating opportunities. About $1 trillion was committed to impact funds over the last decade, with many funds now in the sweet spot for secondary transactions.

Private Credit Alternative Asset Managers Capital Markets Credit Stress Liquidity

2025 Q1

Energy Storage

North Sky allocated more capital to battery storage in Q1 than any other sector. Batteries are increasingly playing a major role in the US electricity grid, storing electrons generated from solar and wind power and then dispatching them as needed. The US installed 12.3 GWs of new energy storage assets in 2024, with Texas overtaking California in new storage additions.

Batteries Grid Storage Energy Storage Battery Storage Grid-tied

Solar

More than half of American solar installations in Q1 are likely using panels manufactured within the US. The US has now surpassed 50 GW of domestic panel manufacturing capacity, over a 7x increase since 2020, and is now the world's third-largest producer. Approximately 50 GWs of solar power capacity was installed across the US in 2024.

Solar Panels Domestic Manufacturing Solar Power Community Solar Solar Development

Energy Transition

The energy transition is a global, secular trend that underpins North Sky's SIF IV strategy. In 2024, there was over $2 trillion invested globally in the energy transition, with rapid growth in such investments over the last five years. Global demand for energy is rising due to population growth, economic growth, urbanization, and the rapid growth of artificial intelligence.

Energy Transition Renewable Energy Clean Energy Sustainable Infrastructure Global Investment

AI

Batteries help power the large number of data centers that are being built to provide the computing power required by increasingly sophisticated artificial intelligence systems like ChatGPT, OpenAI, Claude and Grok3. The rapid growth of artificial intelligence is driving global demand for energy, particularly for data center power consumption.

Artificial Intelligence Data Centers Computing Power AI Systems Power Consumption

Data Centers

Crusoe Energy's AI-optimized data centers can use renewable power or waste natural gas that would otherwise be flared from oil fields. Crusoe is building the first data center as part of the $500 billion Stargate Project between Open AI, SoftBank and Oracle. Data centers require substantial computing power for AI systems.

Data Centers AI-optimized Computing Infrastructure Stargate Project Power Requirements

EV Charging

SIF IV signed a term sheet for its third investment, a portfolio of EV charging projects in a region that is not dependent on ongoing federal incentives. These direct-current fast charging projects will immediately recoup up to 90% of installation costs via local programs, with opportunities to deploy complementary battery storage systems at each charging site.

EV Charging Fast Charging Electric Vehicle Infrastructure Charging Networks Battery Storage

2024 Q4

Energy Storage

Infrastructure funds increased exposure to lithium-ion battery storage more than any other renewable sector in 2024. Recent validation through December liquidity event for mature storage projects in New York. Data centers need massive battery systems to store electrons from intermittent sources like wind or solar for 24/7 dispatch.

Battery Storage Lithium-ion Grid Storage Data Centers Renewable Energy

Data Centers

Growth in data center computing demand driven by AI and cryptocurrency mining shift. McKinsey believes energy demand from data centers will grow from 4% of total US electricity consumption today to 11-12% by 2030. Hyperscalers taking all-of-the-above approach to powering datacenters including nuclear power.

AI Computing Power Demand Hyperscalers Nuclear

Energy Transition

Clean energy and transportation investment in USA reached record-setting $71B in Q3 2024. Solar power made impressive headlines with first commercial sales of perovskite solar panels that are 20% more powerful than conventional silicon modules. Energy transition now happening within a growing total market driven by computing and EV demand.

Clean Energy Solar Perovskite Transportation Investment

AI

Massive leaps forward in AI during the quarter. AI and electric vehicles require significant electricity, creating investment opportunities. Various studies predict AI power usage will add between 1.5-4.0% load demand to the grid by 2030, equating to about 15-40 GWs of additional needed capacity.

Artificial Intelligence Power Demand Grid Computing Electricity

Renewable Energy

Renewable natural gas can play important role in decarbonizing energy production from North American utilities. Made significant progress at all RNG project sites including East Coast waste-to-RNG facilities and West Coast approval under California Senate Bill 1440. State-level Renewable Portfolio Standards continue to supplement federal policy.

RNG Decarbonization Utilities California Portfolio Standards

2024 Q3

Energy Transition

Solar accounted for 67% of all new electricity generation capacity in H1 2024, with the US solar market installing 9.4 GW in Q2 2024. US solar module manufacturing capacity expanded by over 10 GW to 31.3 GW in Q2 2024 driven by Inflation Reduction Act incentives. The US solar industry is on track to install over 250 GW in the next 5 years.

Solar Energy Storage Renewable Natural Gas Community Solar Inflation Reduction Act

Infrastructure Spending

Infrastructure has outperformed private credit, private equity and real estate over the last three years due to massive global push for energy transition and public policy support. Institutional investors have been increasing their allocations to infrastructure. The middle market segment is attracting particular attention with relative underallocation of capital representing considerable opportunity.

Infrastructure Middle Market Energy Storage Renewable Energy Public Policy

Private Credit

Secondary sales volume is up 58% in H1 2024 compared to prior year. It is a good time to be a secondary buyer as IPO and M&A exits remain muted, spurring investors to tap into the secondary market to generate liquidity. The ratio of private equity exits to new investments was 0.36x for H1 2024.

Secondaries Liquidity Exit Environment Continuation Vehicles GP-led

2024 Q2

Energy Storage

Battery energy storage projects are expanding in NYC area for peak load shaving and demand response. Chinese battery storage system prices dropped 45% in Q1'24 versus Q1'23, enabling developers to capture higher project values. ESS joint venture with Orenda added 35 megawatts of development pipeline.

Battery Grid Storage Lithium Peak Load

Energy Transition

Sustainable Infrastructure Fund IV targets environmental infrastructure, clean power and grid enhancements. Active pipeline includes renewable natural gas, community solar, green hydrogen, geothermal, microgrids, lithium carbonate processing, waste-to-value projects and carbon sequestration.

Renewable Clean Power Hydrogen Geothermal Carbon

Infrastructure Spending

Policy momentum building for sustainable infrastructure throughout the United States. New York State updated Energy Storage Roadmap to expand battery storage deployment goals. US Treasury continued rulemaking activities to finalize Inflation Reduction Act incentives for renewable energy projects.

Policy IRA Deployment Federal State

Private Credit

Impact secondaries market has expanded to mirror all investment strategies of traditional private equity market including private credit, mezzanine, buyout and infrastructure funds. Impact managers have raised $124 billion across 382 funds in the last five years.

Secondaries Impact Fundraising Alternative Credit

2024 Q1

Energy Transition

Global energy transition investment topped $1.7 trillion in 2023, with visible signs of transformation across energy, transportation, and technology sectors. The last four years have brought astonishing growth in installed solar and wind capacity, EV sales, renewable natural gas production, and demand for raw materials like copper and silver.

Solar Wind Renewables Biofuels Grid

Energy Storage

Energy storage installations tripled in 2023 to almost 100 GWh worldwide, with 2024 expected to be even higher due to improving economies of scale, falling costs, and strong utility demand. Fund III expanded potential capacity by 76 MW across 16 new projects in the New York City area.

Batteries Grid Storage Peak Load Utilities Interconnection

Data Centers

Growing electricity demand from data centers driven by AI adoption is notable, with McKinsey projecting demand growth from 19 GW in 2023 to 32 GW by 2029. Boston Consulting Group expects US data center electricity usage to triple from 2.5% to 7.5% of domestic consumption by 2030.

AI Computing Electricity Infrastructure Cloud

Water

Investment opportunities span water desalination, wastewater treatment, re-use/recovery and remediation. Water remediation for PFAS removal represents a multi-billion dollar opportunity, while water re-use/recovery is critical for sustainable cities in arid geographies like the US Southwest.

Desalination PFAS Remediation Reuse Southwest

2023 Q4

Electric Vehicles

Annual EV sales in the USA crossed 1 million units with EVs, hybrids and plug-in hybrids accounting for 17.7% of new light-duty vehicle sales in Q3. Growth attributed to increasing consumer acceptance, greater charging station availability, IRA tax credits and declining prices due to economies of scale.

EV Sales Charging Infrastructure IRA Credits Consumer Adoption Price Decline

EV Charging

The US needs to quadruple EV chargers by 2025 and grow eight-fold by 2030. Manufacturers announced over $500 million in investments for Buy American-compliant EV chargers across 40+ plants. Related opportunities include onsite energy storage, solar, transmission lines and load balancing technology.

Charging Stations Infrastructure Investment Buy American Energy Storage Grid Upgrade

Solar

Solar panel prices hit lowest point ever at $0.128 per watt due to oversupply, with prices expected to drop to $0.10 by year-end 2024. Despite 400GWs of new installations worldwide, manufacturers face low/no profitability. 2023 expected to be record year for US solar deployment with steady growth projected through 2028.

Panel Prices Oversupply Record Deployment Manufacturing Growth Forecast

Energy Storage

Energy storage projects are benefiting from strong policy support including the Inflation Reduction Act. Storage is identified as a key area for future investment alongside community solar and renewable natural gas, with battery prices notably lower than six months ago.

Battery Prices Policy Support Grid Storage IRA Benefits Investment Focus

Renewable Natural Gas

Rhode Island Bioenergy Facility injected renewable gas into local pipeline for first time. EPA's new Renewable Fuel Standard requirements support 25% annual growth in RNG production for next two years. Sharp increase in utility procurement of RNG observed.

RNG Production Pipeline Injection EPA Standards Utility Procurement Growth Targets

Infrastructure Spending

All renewable projects benefiting from strong local, state and federal policy support including the Inflation Reduction Act. Important guidance issued on made in America requirements and low-moderate income tax credits, with various adders stackable on top of 30% base tax credit.

IRA Support Tax Credits Made in America LMI Credits Policy Guidance

Private Credit

Liquidity constrained institutional investors are selling assets to secondary funds to create liquidity needed for new GP commitments. This creates a buyer's market for secondaries with willing sellers, ample supply and attractive pricing, especially for impact assets with little competition.

Liquidity Crunch Secondary Sales Buyer's Market Impact Assets GP Fundraising

2023 Q3

Energy Transition

North Sky is bullish on sustainable infrastructure thanks to the once-in-a-lifetime uplift from the Inflation Reduction Act. They focus on renewable natural gas, community solar, energy storage and other premium revenue opportunities in the lower middle market where there is less competition compared to utility-scale projects.

Solar Energy Storage Renewable Natural Gas IRA Infrastructure

Lithium

A newly discovered lithium deposit in Northern Nevada may be the biggest in the world, worth nearly $1.4 trillion according to Lithium Americas Corp. The deposit may contain 20-40 million tons of lithium compared to current global demand of about two million tons per year.

Battery Metals Mining Nevada Domestic Supply

Private Credit

Market dynamics for secondaries are favorable, especially for specialist impact strategies. North Sky is seeing LP-led transactions at 40-60% of NAV for impact secondaries compared to 57-70% for traditional funds, and GP-led solutions at 82% of NAV for multi-asset deals.

Secondaries Impact Investing NAV Discounts Liquidity

2023 Q2

Energy Transition

The firm is actively investing in renewable energy infrastructure including RNG projects, battery storage, and solar development. The Inflation Reduction Act is providing significant tailwinds with tax credit bonuses and transferability provisions accelerating deployment.

Renewable Energy RNG Battery Storage Solar IRA

Infrastructure Spending

North Sky's infrastructure team is focused on sustainable infrastructure projects including wastewater treatment facilities, renewable natural gas production, and battery storage systems that benefit from federal policy support.

Sustainable Infrastructure Wastewater Public-Private Partnership Federal Support

Private Credit

The firm operates impact secondaries strategy targeting approximately $100 billion of unrealized NAV in impact funds. With IPO and M&A markets constrained, secondaries provide liquidity for existing investors creating buying opportunities.

Impact Secondaries Liquidity NAV GP-led Transactions

2023 Q1

Energy Transition

Over $1 trillion was invested in decarbonizing energy in 2022, with renewable energy and EVs accounting for most of this investment. The firm sees this as a mega trend driving their investment strategy across multiple portfolio companies and infrastructure projects.

Decarbonization Renewables EVs Clean Energy IRA

Battery Supply Chain

Portfolio company Amprius achieved a breakthrough with lithium-ion batteries delivering double the energy density of Tesla, Rivian and Ford EVs. Lithium carbonate prices dropped sharply in Q1 2023 from over 500,000 RMB/ton to just over 250,000 RMB/ton, benefiting energy storage developers.

Lithium Energy Storage Battery Technology Supply Chain

Infrastructure Spending

The firm emphasizes the need to upgrade aging infrastructure including rail, bridges, highways, airports, and energy distribution. They also highlight creating new infrastructure for EV battery recycling, solar panel recycling, and efficient shipping methods like hyperloops.

Infrastructure IRA Transmission Grid Upgrade

Private Credit

The impact secondaries market represents a vast untapped opportunity with only 0.1% of impact capital raised going to dedicated impact secondary funds versus 3.7% for traditional secondaries. The firm estimates $209 billion of potential market opportunity for impact secondary transactions.

Secondaries Impact Investing Alternative Assets

Date	Pitch Type	Author	Ticker	Company	Industry	Sub Industry	Bull / Bear	Exchange	Keywords	Action
Jul 1, 2026	Fund Letters	North Sky Capital	FAC	Factorial Energy	Electrical Equipment & Parts	Electrical Components & Equipment	Bull	NASDAQ	battery technology, clean energy, Climatech, Drones, Electric Vehicles, Energy-Density, IPO, Solid-State Batteries	Login
Jul 1, 2026	Fund Letters	North Sky Capital	ZFIV	ZincFive	Other	Electrical Components & Equipment	Bull	NASDAQ	AI infrastructure, backup power, battery technology, Climatech, data centers, IPO, Mission-Critical, Nickel-Zinc Batteries	Login
Jul 1, 2026	Fund Letters	North Sky Capital	LIME	Neutron Holdings (Lime)	Other	Specialized Consumer Services	Bull	NASDAQ	Climatech, Electric Scooters, IPO, Last Mile, Micro-Mobility, Revenue Growth, Shared Mobility, Urban Transportation	Login
-	Fund Letters	North Sky Capital	AMPX	Amprius Technologies Inc	Information Technology	Electronic Equipment, Instruments & Components	Bull	NYSE	battery technology, clean technology, Decarbonization, Electric Vehicles, energy storage, Energy-Density, Lithium-ion, Silicon Anodes	Login

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Keywords

Action

Jul 1, 2026

Fund Letters

North Sky Capital

FAC

Factorial Energy

Electrical Equipment & Parts

Electrical Components & Equipment

Bull

NASDAQ

battery technology, clean energy, Climatech, Drones, Electric Vehicles, Energy-Density, IPO, Solid-State Batteries

Jul 1, 2026

Fund Letters

North Sky Capital

ZFIV

ZincFive

Other

Electrical Components & Equipment

Bull

NASDAQ

AI infrastructure, backup power, battery technology, Climatech, data centers, IPO, Mission-Critical, Nickel-Zinc Batteries

Jul 1, 2026

Fund Letters

North Sky Capital

LIME

Neutron Holdings (Lime)

Other

Specialized Consumer Services

Bull

NASDAQ

Climatech, Electric Scooters, IPO, Last Mile, Micro-Mobility, Revenue Growth, Shared Mobility, Urban Transportation

Fund Letters

North Sky Capital

AMPX

Amprius Technologies Inc

Information Technology

Electronic Equipment, Instruments & Components

Bull

NYSE

battery technology, clean technology, Decarbonization, Electric Vehicles, energy storage, Energy-Density, Lithium-ion, Silicon Anodes

TICKER	COMMENTARY
FAC	Factorial Energy (FAC), solid state batteries for drones and cars (CG V)
ZFIV	ZincFive (ZFIV), nickel-zinc batteries for data centers (CG V)
EROC	ERock (EROC), microgrids for data centers
FRVO	Fervo Energy (FRVO), Geothermal energy
XE	X-energy (XE), small modular reactors and nuclear fuel pellets
FISN	Deep Fission (FISN), small underground nuclear reactors
SPCX	SpaceX (SPCX), spaceflight, telecom, ISP and AI (originally was in PEP III (2006 vintage))
LIME	As this commentary went to press, the IPO of Neutron Holdings (Lime electric scooters) was pending. The company (Ticker: LIME) has grown rapidly, with revenue rising from $522 million in 2023 to $887 million in 2025. It is held in both CG V and VI

TICKER

COMMENTARY

FAC

Factorial Energy (FAC), solid state batteries for drones and cars (CG V)

ZFIV

ZincFive (ZFIV), nickel-zinc batteries for data centers (CG V)

EROC

ERock (EROC), microgrids for data centers

FRVO

Fervo Energy (FRVO), Geothermal energy

X-energy (XE), small modular reactors and nuclear fuel pellets

FISN

Deep Fission (FISN), small underground nuclear reactors

SPCX

SpaceX (SPCX), spaceflight, telecom, ISP and AI (originally was in PEP III (2006 vintage))

LIME

As this commentary went to press, the IPO of Neutron Holdings (Lime electric scooters) was pending. The company (Ticker: LIME) has grown rapidly, with revenue rising from $522 million in 2023 to $887 million in 2025. It is held in both CG V and VI

Ticker	Put/Call	Amount Bought	Shares Bought	% Change	Weight %
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No Recent Buys Data

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No Recent Sells Data

Industry	Prev Quarter %	Current Quarter %	Change
No industry data available

Industry

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No industry data available

Investment Summary

Investor Summary

Fund Strategy

FUND PERFORMANCE AS OF 30th June 2026

Investor Letters

Latest Executive Summary:

Executive Summary

Core Thesis

Forward Outlook

Investment Themes

Energy Transition

EV Batteries

Data Centers

Private Credit

Solar

Semiconductors

Space

Electric Vehicles

AI

Energy Storage

Solar

Infrastructure Spending

Energy Transition

Natural Gas

Energy Transition

AI

Electric Vehicles

Private Credit

Critical Minerals

AI

Energy Transition

Electric Vehicles

Energy Storage

Data Centers

Energy Transition

Data Centers

Trade Policy

Infrastructure Spending

Nuclear

Impact Secondaries

Energy Storage

Solar

Energy Transition

AI

Data Centers

EV Charging

Energy Storage

Data Centers

Energy Transition

AI

Renewable Energy

Energy Transition

Infrastructure Spending

Private Credit

Energy Storage

Energy Transition

Infrastructure Spending

Private Credit

Energy Transition

Energy Storage

Data Centers

Water

Electric Vehicles

EV Charging

Solar

Energy Storage

Renewable Natural Gas

Infrastructure Spending

Private Credit

Energy Transition

Lithium

Private Credit

Energy Transition

Infrastructure Spending

Private Credit

Energy Transition

Battery Supply Chain

Infrastructure Spending

Private Credit

Investor Pitches