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Quarter	Letter Date	Fund Name	QTD	YTD	Tickers	Themes	Quick Take

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North Sky Capital 2026 Q3 Investor Letter | Buyside Digest

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Primary Source Intelligence • Q3 2026 Letter Analysis

North Sky Capital Quarterly Analysis

Buyside Digest is not affiliated with, and does not endorse, North Sky Capital. This analysis is provided for institutional research purposes only and is not investment advice.

Fund Returns

Positioning StanceCONSTRUCTIVE

GeographyUS

Digest Analysis

Quick Take

"The surging energy demands of the automation age, alongside artificial intelligence compute buildouts, present multi-decade growth drivers for clean power and storage."

Executive Summary

The rapid advancement of artificial intelligence, robotics, and broad-based automation is driving a massive global infrastructure buildout, creating compelling long-term impact investing opportunities in sustainable power generation, energy storage, and secondary private market transactions. North Sky Capital capitalizes on these secular tailwinds across its Sustainable Infrastructure and Impact Secondaries strategies by targeting behind-the-meter generation, solar plus battery storage, and structured secondary liquidity solutions. Broader macro headwinds, including elevated interest rates with the 10-year Treasury yield surpassing 5%, a cautious M&A environment, and climate tech venture capital fundraising declines, continue to pressure market valuations. However, fundamental earnings resilience, strong corporate capital expenditure cycles, and expanding secondary market supply provide favorable conditions for capital deployment. Portfolio positioning remains focused on high-demand grid and data center infrastructure, opportunistic secondary fund purchases, and disciplined realizations across mature fund vintages.

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Institutional Meta Strategy

Meta Strategy Gauges

Algorithmic conviction, macroeconomic posture, and risk appetite signals extracted from this quarterly letter with qualitative explanations.

Signal Matrix

Market Conviction

70%

CautiousHigh

Moderate (70%)

North Sky demonstrates strong conviction through targeted capital deployments into specific infrastructure assets (such as OBE Power) and selective secondaries across its Clean Growth fund family. While high specificity is provided for fund transactions and portfolio developments, the overall capital base is diversified across multiple funds, co-investments, and underlying portfolio companies rather than concentrated in a handful of single-asset bets.

Growth Outlook

70%

BearishBullish

Bullish (70%)

The outlook is constructive, highlighted by record earnings growth, expanding power demand, and resilient corporate capex supporting energy transition and automation. However, the manager balances this optimism with recognition of significant macro headwinds, including the 10-year Treasury yield surpassing 5%, interest rate hikes by the Federal Reserve, and subdued traditional M&A and IPO windows.

Risk Appetite

75%

DefensiveAggressive

Aggressive (75%)

The firm actively deploys capital into growth-oriented infrastructure assets and launches new secondary vehicles like Clean Growth VII, demonstrating strong risk tolerance. Nevertheless, they exercise discipline by passing on early-stage, risky LP secondary portfolios in favor of mature assets and structured downside-protected equity.

Capital Deployment

75%

De-riskingDeploying

Deploying (75%)

Capital is actively being put to work via new platform investments such as OBE Power, the activation of Clean Growth VII, and multiple secondary continuation vehicles. This is accompanied by active realizations and distributions from Clean Growth III through VI.

Forward Guidance

80%

CautiousExpansionary

Expansionary (80%)

Forward guidance clearly indicates an intent to accelerate secondary transaction closings in Q4 and expand capital commitments to EV charging, solar, and battery storage. The firm actively solicits co-investors and sellers of secondary portfolios to expand deployment in the coming quarters.

Language Signal

70%

BearishBullish

Bullish (70%)

The letter frequently highlights words such as 'abundant opportunity', 'incredible strength', 'terrific deal flow', and 'compelling impact investing opportunities'. These positive expressions are tempered by notes on fundraising declines, rate pressure, policy headwinds, and subdued liquidity.

Perceived Risk

60%

Low RiskElevated

Moderate Risk (60%)

The manager cites multiple macroeconomic and geopolitical pressures, specifically the 10-year Treasury yield rising above 5%, higher borrowing costs, muted IPO windows, $6/gallon diesel prices, and international conflicts. While viewed as headwinds to overall liquidity, they are not expected to derail core secular trends.

Opportunity Density

85%

ScarceAbundant

Abundant (85%)

The manager notes a 2x increase in secondary deal flow compared to 12-18 months prior, driven by aging venture vintages and expanding continuation vehicles. In addition, the surge in US behind-the-meter compute buildouts provides rich pipeline density across clean infrastructure.

Time Horizon

75%

Short-TermLong-Term

Decade+ (75%)

The firm frames its strategies around a multi-year investment megatrend driven by the automation age and AI capex cycle over the next 5 to 10 years. Secondary funds like CG VI are actively harvesting, but overarching thesis horizons remain multi-year and decade-oriented.