Quant Specialist Two Sigma Raises $677M for Debut Impact Fund Focused on Human Capital

Two Sigma Impact, a private equity business with a strong quantitative focus, has closed its debut Impact Fund at $677 million in capital commitments and its managed co-investments.

The company launched the impact business in 2020 and reached a first close for the fund at $425 million in April 2021. It now stands at $602 million with an additional $75 million in co-investments.

The New York-based company invests in human capital-focused businesses where employees are necessary for the delivery of a service or product by using data science and technology resources to drive financial returns. The fund has made six investments in companies spanning healthcare, consumer, education and training, and business services.

“Over the last three years, we have been investing against our thesis that job quality and employee engagement is highly connected and collinear with business performance,” said Ann Ruble, Operating Partner at Two Sigma Impact.

As of April 1, 2023, the fund has invested approximately $370 million. Two Sigma Impact has also launched the Good Job Score Assessment Tool, which is designed to assess job quality in a quantitative manner.