Three Hills Impact Closes Above Target at €300 million

On March 3, 2026, Three Hills has successfully closed its dedicated lower middle market strategy, Three Hills Impact, with approximately €300 million in total capital commitments, including co-investment and managed vehicles. The final close took place at the end of January, surpassing the Fund’s original fundraising target and underscoring strong investor confidence in the firm’s longstanding approach of supporting ambitious, fast-growing entrepreneur-led businesses.

The successful raise highlights continued backing for Three Hills’ distinctive model of providing flexible capital solutions to innovative and sustainable middle market companies across Europe and North America. Over more than 15 years, the firm has cultivated a broad proprietary sourcing network, enabling access to differentiated lower middle market opportunities. The Fund attracted commitments from leading pension funds, insurance companies and family offices across Italy, Europe and North America seeking high-quality, impact-driven private markets strategies.

Three Hills Impact is aligned with the firm’s established investment philosophy, offering flexible and less dilutive capital structures with downside protection for founders and management teams. The strategy focuses on European lower middle market businesses, particularly in Italy, Spain, France and the United Kingdom, targeting companies with enterprise values between €30 million and €200 million. Investment tickets typically range from €10 million to €30 million, with an emphasis on fast-growing business models capable of delivering measurable and positive impact outcomes.

Each investment is aligned with one of three core impact themes — People, Planet or Progress — and linked to selected UN Sustainable Development Goals (SDGs). Since its launch, the Fund has built a diversified portfolio of five companies. Recent investments include ISFA, a leading agricultural investment platform in the Iberian Peninsula, and Smartbox, a UK-based provider of assistive speech and communication technologies. These follow three earlier investments across agrifood technology, education and energy, all sourced through the firm’s long-standing pan-European relationships.

Mauro Moretti, Founder and CEO of Three Hills, commented: “Over the past decade, Three Hills has reached €3.3 billion in assets under management. As we have grown and invested in larger companies, our exposure to the lower middle market has reduced, despite the compelling growth opportunities we continue to see there. Three Hills Impact represents a natural evolution of our investment heritage and allows us to formalise the impact principles that have long underpinned our approach.”

Stefanie Kneer, Head of ESG and Sustainability, added: “Sustainability has been embedded in our DNA from the beginning. From our first circular economy investments in 2009 to the entrepreneur-led businesses we back today, our focus has consistently been on supporting companies that deliver tangible environmental and social benefits alongside financial performance.”

About Three Hills
Three Hills is an established private markets investment firm with approximately €3.3 billion in assets under management. The firm provides bespoke capital solutions across Europe and North America through three dedicated strategies: senior credit, flexible capital solutions and middle market preferred minority equity financing.

Three Hills is a trusted partner to entrepreneurs, offering active, hands-on support throughout the investment lifecycle. The firm has supported its portfolio companies in completing over 60 M&A acquisitions and expanding into more than 70 new geographies.

Certified as a B Corporation since 2022, Three Hills integrates sustainability and responsible investment across its activities and manages both SFDR Article 8 and Article 9 strategies. With offices in London, Milan, New York, Paris, Madrid and Luxembourg, the firm operates with a team of 70 professionals.

About Three Hills Impact
Three Hills Impact is a natural extension of the firm’s established preferred capital strategy, addressing a compelling opportunity in the lower mid-market. The inaugural 2024 vintage, classified as an SFDR Article 9 fund, places equal emphasis on financial returns and impact performance through thoughtful portfolio construction. The strategy invests in companies whose core business models generate meaningful positive social or environmental outcomes. Investments are guided by thematic objectives aligned with specific UN Sustainable Development Goals, ensuring a focused origination process and a rigorous framework for assessing and attributing measurable impact.