Investments should optimize both financial and social returns, and we're investing in a new generation of companies and fund managers that are leading the way.
The best strategies align impact and business success through one or more of the 5Ps of impact (people, place, product, process, paradigm). We focus on four impact areas that we believe best allow for that strong alignment:
Education: Education outcomes and access in early childhood, K12, higher education, and lifelong learning.
Health: Healthcare access, utilization, and outcomes, particularly for underserved populations.
Economic Empowerment: Jobs, career paths, and affordable financial products and planning tools.
Environmental Sustainability: Better management of water, energy, carbon, and waste.
We’ve been thoughtful about where these overlaps make sense for us:
In our venture fund, we focus entirely on product-based impact.
In addition to performing due diligence on the impact alongside other business considerations, we construct an impact logic model for each investment. As part of that process, we develop a set of impact metrics that our investees will report to us alongside their financial metrics.
When we are ready to make an investment, we ask each of our investees to sign a mutual impact commitment, aligning our joint interests in both social and financial return and committing to report the impact metrics we have agreed upon.
In our private equity fund, all investments require an investment thesis for generating financial and social value within the categories listed above.
Our direct investments apply the same approach to identifying impact metrics as our venture investments. When we diligence a fund, we work with managers to construct a framework for developing their own impact metrics at the company level.
For both fund and direct investments, we ask investees to sign a mutual impact commitment, aligning our joint interests in both social and financial return, and committing to report the impact metrics we have agreed upon.