Three Hills Impact Closes Above Target at €300 million

Three Hills’ dedicated lower middle market strategy surpassed its fundraising targets, underscoring investor confidence in the longstanding approach of backing ambitious and fast-growing, entrepreneur-led businesses

London / Milan, 3 March 2026 – Three Hills (“Three Hills” or “the Firm”) is pleased to announce the successful raising of its lower middle market vintage, Three Hills Impact (“the Fund” or “the Strategy”), with around €300 million of capital committed, which includes co-investment and managed vehicles, with the final closing having taken place at the end of January.

This positive outcome underscores continued investor confidence in Three Hills’ distinctive and proven model, backing growing innovative and sustainable middle market businesses in Europe and North America through flexible capital solutions. It also reflects the Firm’s track record of sourcing proprietary investment opportunities in the lower middle market through a wide and established network cultivated over more than 15 years. The Fund attracted backing from leading Italian, European and North American pension funds, insurance companies, and family offices seeking high-quality, impact driven, private markets strategies.

Three Hills Impact is aligned with the Firm’s distinctive investment approach, offering a full range of flexible capital solutions with downside protection and less dilutive structures for entrepreneurs. The Fund will continue to invest in lower middle market European businesses with a particular focus on Italy, Spain, France and the United Kingdom, with €30-200 million in enterprise value.

Investment tickets typically range from €10–30 million with an emphasis on fast-growing business models that generate impactful, measurable and positive outcomes. Each investment aligns with one of the key impact themes “People, Planet or Progress”and is underpinned by selected UN Sustainable Development Goals (SDGs).

Since its launch, the Fund has already started to build a robust diversified portfolio of five companies, including the recently announced investments in ISFA, a leading agricultural investment platform in the Iberian Peninsula, and Smartbox, an innovative UK-headquartered business offering assistive speech and communication technologies. These come on top of three earlier investments diversified across the agrifood technology, education and energy sectors, with each of them sourced directly through the Firm’s long‑standing relationships and established pan-European network.

Mauro Moretti, Three Hills’ Founder and CEO, said: “Over the past decade, Three Hills has reached €3.3 billion in AuM, with the Firm’s latest Capital Solutions vintage closed in 2022 with over €1 billion in overall commitments. This scale has enabled us to invest in larger companies, and has reduced our exposure to the lower middle market, where the team continues to see
significant potential and compelling growth stories. The launch of Three Hills Impact is a natural evolution of our investment heritage, which will allow our team to more effectively capture opportunities in the lower middle market and to formalise the impact principles that have long underpinned our investment approach.”

Stefanie Kneer, Three Hills’ Head of ESG and Sustainability, added: “Sustainability has been deeply embedded in Three Hills’ DNA from the very beginning, with most of our investments to date deployed in businesses delivering tangible environmental or social benefits. From our early investments in circular economy pioneers back in 2009 to the entrepreneur‑led companies we support today, our focus has always been on partnering with growth-oriented founders and management teams whose ambitions extend well beyond financial performance.”

About Three Hills

Three Hills is an established private markets investment firm with around €3.3 billion in assets under management, providing bespoke capital solutions in Europe and North America through three dedicated investment strategies, ranging from senior credit, flexible capital solutions and middle market preferred minority equity financing.

Three Hills has become a trusted partner for entrepreneurs seeking active, hands-on involvement and value creation expertise throughout the investment period, with a proven track record supporting its portfolio companies in executing over 60 M&A acquisitions and entering more than 70 new geographies to date.

As a certified B Corporation since 2022, Three Hills embeds sustainability and responsible investment at the heart of its activities, managing both SFDR Article 8 and Article 9 strategies, advancing rigorous ESG and impact frameworks, in line with the belief that sustainable value creation and innovative capital solutions go hand in hand.

With offices in London, Milan, New York, Paris, Madrid and Luxembourg, the firm operates with a team of 70 professionals.

For further information, visit www.threehills.com

Press queries:

Three Hills
Anna Vivaldi: a.vivaldi@threehills.com / investorservices@threehills.com

SEC Newgate Italy
Fabio Santillo: threehills@secnewgate.it

SEC Newgate UK
Eva Rana / Ambika Sharma:  threehills@secnewgate.co.uk