SK2 Fund backs Fibers Fund to support US natural fiber producers

What's the deal? Boise, Idaho-based SK2 FundDealroom has a profile for this one. Try Dealroom → has invested in Fibers FundDealroom has a profile for this one. Try Dealroom →, a flexible debt and grant vehicle for underinvested natural fiber and textile producers in the US. The private foundation joins California-based Cienega CapitalDealroom has a profile for this one. Try Dealroom → and the Nathan Cummings FoundationDealroom has a profile for this one. Try Dealroom → on the fund's roster of limited partners.

Why now? SK2 Fund is working to align its $26.4 million endowment with its mission and is almost two-thirds of the way to that goal. The investment in Fibers Fund advances that effort.

What's the endgame? Fibers Fund channels capital to producers often overlooked by traditional investors. Its portfolio includes fiber hemp processor Renaissance FiberDealroom has a profile for this one. Try Dealroom → and sustainable leather producer Range RevolutionDealroom has a profile for this one. Try Dealroom →, and the women-led manager runs a dedicated capital pool for Black-led businesses.

The signal: The backing reflects a push among mission-driven funders to steer money toward underserved parts of the textile and fiber supply chain. "Capital has flowed in the same direction for far too long," said SK2's Jessica McAleese, framing the investment as a chance to "share risks and returns" and "shift power" toward more diversified systems.

Read more: impactalpha.com

Image credit: Ken Lund