Impact Investing Field Scan Landscape Overview and Group Profiles

Transcription

1 Landscape Overview and Group Profiles July 2011

2 Introduction to Impact Investing Impact investing uses profit-seeking investments to generate societal and environmental good in addition to financial returns. The impact investing market sits at the nexus of philanthropy and capital markets. It provides grant-makers and philanthropic institutions the opportunity to go beyond contributions, memberships and grants, leveraging investment assets to further socialchange and social-justice missions. As impact investors, these individuals and institutions make investments in social enterprise entrepreneurs and social enterprises: mission-driven organizations that apply market-based strategies to achieve a social purpose. The social enterprise movement includes both nonprofits that use business models to pursue their mission and for-profits whose primary purposes are to deliver positive change (jobs, micro-loans, positive environmental impacts, etc.). Impact investing is a distinct type of socially responsible investing that starts with a different premise than past SRI investment models. The SRI market has traditionally used either (1) a negative screen to filter out investments in companies that create societal harm (e.g. refusal to include tobacco companies in an investment portfolio) or (2) a shareholder activism model to attempt to positively influence corporate behavior. Impact investing starts in a different place: instead of a do-no-harm model, it uses a do good model that seeks investment opportunities that create societal benefits in addition to financial return. For the purposes of this overview, negative screening strategies are considered finance-first vehicles because their first goal is financial return, while impact investments are referred to as impact-first opportunities and strategies. Purpose and Methodology This memo provides an overview of the field, highlighting several key sub-sectors and roles that different organizations and companies fulfill within this evolving landscape. Example groups are briefly profiled within this memo to demonstrate different models and types of engagement in impact investing. This piece also provides working definitions of key terms (highlighted throughout the text in boldface type), the goal of which is to develop a common language for use within Tides. The memo is based on a field scan of more than 30 leading groups in the field of impact investing -- from investment-product providers to philanthropic institutions and membership associations. This is a small percentage of the total number of groups in this industry, but our purpose is to provide a framework for assessing potential partnership opportunities for Tides, not to create a comprehensive snapshot of the field. The field scan is appended. Data for these profiles was compiled through publicly available sources including websites, research reports, brochures, forms and membership affiliation profiles, where available. The scan was conducted from July 11 - July 18, 2011.

3 Convening Roles in Impact Investing Impact investing is a growing marketplace of tens of billions of dollars. A 2008 Monitor Institute report, Investing for Social and Environmental Impact, estimates that the impact market could top $500B by Comparatively, this would be nearly double the amount of current annual philanthropic giving in the U.S. To help create this marketplace, a handful of foundations -- led by the Rockefeller Foundation -- have incubated and funded a variety of convening groups to create, support and evaluate the field. Convening groups tend to serve one or more of three purposes: Define the landscape of impact investing by studying its developments, creating and standardizing investment and/or reporting metrics; Support social-enterprise entrepreneurs by providing technical assistance ( T.A. ) to help manage and launch their business and connect them to investors; and Support investors and institutions by researching developments in the field, vetting and providing their members/constituents with information about investment opportunities. Several organizations provide leadership in these areas, and further information is provided for several of them in the appendix. A subset is profiled here as examples of key actors with whom Tides may be able to partner. > PROFILE: THE GLOBAL IMPACT INVESTING NETWORK (GIIN) -- LANDSCAPE DEFINITION The GIIN is a 501c(3) public charity operating under the fiscal sponsorship of Rockefeller Philanthropy Advisors. The GIIN developed the Impact Reporting and Investment Standards (IRIS) Guidelines to serve as a common social and environmental vocabulary that can be used by social enterprise and investors to evaluate impact returns. Organizations that adopt the IRIS definitions for their impact reporting can contribute data to the GIIN, which will produce industry-wide benchmarks and support related analysis. While IRIS and other work from the GIIN is meant to be used by the general public, the organization s primary constituency is its Investors Council, designed for investors with significant capital already invested with a clear social or environmental impact. Members range from major private foundations (Gates, W.K. Kellogg, Annie E. Casey) to multi-national financial services corporations (e.g. Citi, Deutsche Bank, TIAA-CREF). > PROFILE: INVESTORS CIRCLE (IC) -- CONVENER + T.A. FOR INVESTORS IC is a marketplace of investments. The non-profit organization supports a membership network of 150 angel investors, professional venture capitalists, foundations and family offices. The organization, now merging with the SJF Institute (which convenes and provides T.A. to social enterprises), solicits prospectuses from early-stage enterprises. IC invites selected organizations to present to the IC network at in-person and virtual Venture Fairs. Philanthropic Roles in Impact Investing More specific to the arena of foundation investment strategy is mission-related investing (MRI), the practice of aligning a foundation s asset investments with its mission. Many foundations rely on finance-first SRI vehicles to achieve market-rate returns (that is, financial returns that are at least equivalent to the returns of the market as a whole) while avoiding investing money at cross-purposes to their philanthropic missions. Page 2 of 37

4 Many mid-major and major foundations have developed multi-million dollar funds for programrelated investments (PRIs) whose chief purpose is to advance the foundation s mission. PRIs are impact-first investments: like grants, they make money available to organizations that are addressing social or environmental concerns; unlike grants, PRIs are expected to be repaid, often at below-market rates of return. Once repaid, PRIs are typically reinvested in other charitable activity. > PROFILE: PRImakers NETWORK -- CONVENER + T.A. FOR INVESTORS PRImakers is dedicated to raising awareness of PRIs as opportunities for philanthropic institutions to leverage their endowments and program funds into change beyond standard grant-making. PRImakers is a non-profit membership association of 120+ foundations and family offices of all sizes and social-impact focus areas. For its members, PRImakers provides the searchable PRI Activity Database that contains details of over 1750 past PRIs to inform future investments. The organization provides technical assistance, trainings and workshops to educate its members on PRIs and social investing. The field is in the early stages of realizing the potential of investing donor-advised funding in impact vehicles. The Rockefeller Foundation has begun a project to develop an impact investment toolkit for community foundations, some of whom are already offering their clients impact-first vehicles (e.g. the mission-based deposits program at Silicon Valley Community Foundation, the Opportunity Fund at the San Francisco Foundation, Cincy Tech venture investments at the Greater Cincinnati Community Foundation, and many others). Other public charities, like RSF Social Finance, are leveraging existing donor advisory programs while financial services professionals are creating donor-advised fund products to tap this market. > PROFILE: RSF SOCIAL FINANCE (RSF) RSF offers a $45MM mission investment program for donor advisors, with three investment pools with various risk and return profiles. RSF advertises having over one-thousand clients who direct investments through the foundation s products and donor-advised program. > PROFILE: IMPACT ASSETS (IA) IA is a public charity that was incubated at the Calvert Foundation. The organization s signature product is the Giving Fund, through which it offers a variety of customizable impact investment products. These products include the Calvert Community Investment Notes (see profile, below), Calvert Investments SRI mutual funds, and the more aggressive Global Impact Ventures (GIV) Platform (also developed at Calvert Foundation). IA repots that it is developing new products for its clients, and currently reports investments of over $50MM with 400+ donors participating in its donor advised fund. Several 501c(3) public charities use impact investment models as the primary method of accomplishing their philanthropic work. These organizations solicit donors and use those funds to make PRIs, purchase impact investment products, fund micro-finance institutions or make direct grants. Some go beyond traditional fundraising solicitation and offer donors the opportunity to place funds directly into the organization s impact investment vehicles. > PROFILE: JEWISH FUND FOR SOCIAL JUSTICE (JFSJ) Like RSF, the Jewish Fund for Social Justice is one of several charitable institution that both raises money (along the lines of a traditional non-profit organization) while offering its donors actual investment products and opportunities. For example, JFSJ has partnered with Page 3 of 37

5 the Calvert Foundation to offer its Community Investment Notes product directly to donors, with a minimum investment of $1,000. Larger-capacity investors can make a loan of $18,000 or more to [...] a national loan fund organized to pool investments from the Jewish community and place the money into community development financial institutions. JFSJ does all of this with broadly-defined mission of social justice rooted in Jewish tradition. JFSJ makes direct grants, engages in service-learning projects, organizes synagogues -- and sees impact investing as a key to a portfolio of social-change activities. > PROFILE: ECHOING GREEN Echoing Green, another 501c(3) public charity, follows a more traditional model of social venture philanthropy: Echoing Green raises money that it gives to social entrepreneurs as seed grants to start promising mission-driven enterprise. Like a venture-capital model, Echoing Green connects its grantees T.A., consultants and other grantees in the Echoing Green network to ensure the impact of the enterprise; unlike venture capital, there is no expectation of financial return to Echoing Green. The organization s work is supported by private contributions from corporations, foundations, and individuals and in its nearly 25-year history has invested over $30 million in seed funding to over 500 social entrepreneurs and innovative organizations. For more information regarding some industry-leading philanthropic organizations with microlending foci, please see the field-scan appendix. Investment Products While the conveners are building the connective tissue between different parts of this marketplace, a wide range of instruments, or types of investments, are available as new impact-focused products come to market. The investment instruments are diverse and include the following. (1) Deposits and CDs, protected by the FDIC, are low-risk investments that can have high social-impact returns when invested in Community Development Financial Institutions (CDFIs) -- local banks dedicated to making investments in communities and people who otherwise wouldn t have access to common financial services like savings and checking accounts or small-business loans. (2) Debt investments operate like loans or mortgages -- the investor lends capital to a social enterprise, often through an intermediary like Calvert Foundation using their Community Investment Notes -- based on the promise that at the end of a specified period the money will be returned to the investor, usually with interest. (3) By purchasing equity an investor buys part of a company -- mostly commonly in the form of stock on the stock market but in the case of social enterprise this usually involves private (non-traded) equity. (4) Start-up and growth-stage equity investments are commonly referred to as venture capital, which involves both a higher risk for the investors (an enterprise hasn t yet proved value) and higher return (both financial and social); given the risk and potential rewards, social venture capital funding is marked by high levels of engagement between Page 4 of 37

6 the start-up and the investors (or their intermediaries) to ensure the social impact as well as the financial returns of the enterprise. Other investment vehicles and services (mezzanine capital deals, private-placements, tailored portfolio structuring and more) are maturing. With limited exceptions, many of the more complicated deals and services are available only to high-net worth individuals and institutions, often through major financial services companies (e.g. J.P. Morgan Social Finance, Citi, Deutsche Bank, and others) whose roles in the SRI landscape tend to be finance-first investments. Charitable activity at major financial institutions tends to focus on philanthropic micro-finance grants and CDFI lending. More and more impact-first products are coming to market in a variety of forms and risk-profiles. > PROFILE: CALVERT FOUNDATION [COMMUNITY INVESTMENT NOTES, PRIs] The Calvert Foundation s Community Investment Notes ( CI Notes ) product is offered to investors through Calvert Foundation and through partnerships with several philanthropic institutions, including many donor-advised funds. It is the most common impact-first investment vehicle currently available, and investors can participate starting at $20. The CI Note is a debt instrument, available in various terms and return-rates up to 2%. Calvert Foundation also offers small foundations and family offices a pre-packaged PRI program using a selection of their CI Notes products, and their in-house consulting team (Community Investment Partners) is available to work with large PRI funds to customize PRI investments and institutional initiatives. The Calvert Foundation incubated -- and provides back-office support -- for the ImpactAssets donor-advised fund. The Foundation has nearly $200 million invested in 250 community organizations in all 50 states and over 100 countries. The portfolio comprises investment in a diverse mix of organizations across a range of social causes including affordable housing, micro-finance, small business development, charter schools and early-childhood education facilities. > PROFILE: SUSTAIN VENTURE CAPITAL [PATIENT CAPITAL COLLABORATIVE (PCC)] Sustain Venture Capital manages a portfolio of social venture (equity) funding through the Patient Capital Collaborative, or PCC. The fund invests in companies that apply for financing through Investors Circle, a convener of association of angel investors. PCC invests based on a triple bottom-line analysis (that is, analysis of a company s finances, economic and environmental impacts). Their social enterprise investments range from $500,000 to $5,000,000, and are for seed- or major-growth funding. > PROFILE: NONPROFIT FINANCE FUND LENDING [CDFI BOND FUND, CONSULTING, PRIs] NFF supports the entire continuum of the social enterprise field from nonprofits to investors to philanthropists. The organization, a 501c(3), offers loans, consulting, research, PRI- and deal-structuring in addition to the investment products it offers and manages. As a federallyrecognized CDFI, NFF makes direct loans to nonprofits and social enterprises. For funders, NFF provides support with structuring of philanthropic capital and program-related investments, manages capital for investment in programs, and provide advice and research to help maximize the impact of grants. The Nonprofit Finance Fund is among the most comprehensive approaches in the impactinvesting landscape, offering consulting services in addition to loans and other support. Naturally there is an entire segment of the impact investing market that is being researched, developed and connected by investment advisors. While many investment advisors (especially Page 5 of 37

7 those at major financial institutions) help clients explore impact-first opportunities, there is more limited group that specializes in this field. Imprint Capital Advisors is one of these. > PROFILE: IMPRINT CAPITAL ADVISORS To help clients navigate the profusion of mission-investing approaches and opportunities, Imprint focuses their clients on two distinctive entry points: a finance-first model or an impact-first model that starts with an examination of mission objectives and searches for ways to drive similar or greater impact than what would be achieved from a grant portfolio while generating some financial return. Past and current clients include individual socialenterprise investors and large philanthropic institutions (e.g. Rockefeller Foundation) for research and, presumably, highly tailored portfolio development. Page 6 of 37

8 APPENDIX I: Field Scan Index The following pages profile several organizations and companies involved in the impact investing landscape. The profiles are organized alphabetically by organization/company name; this index provides information on which primary roles each group plays in the field. Please note that several groups have multiple primary purposes, and have been identified as such based on available information. I. Convening & Technical Assistance Landscape Definition Ashoka B Lab (GIIRS standards) Fourth Sector Network Global Impact Investing Network (IRIS standards) For Investors, Institutions, etc. Criterion Ventures Good Capital Investors Circle (recently merged with SJF Institute) PRIMakers Network Social Capital Markets For Social Enterprise Entrepreneurs Non-Profit Finance Fund Root Capital Pacific Community Ventures, Inc. SJF Institute (recently merged with Investors Circle) II. Philanthropic Donor Advised Funds Calvert Foundation Community Foundations ImpactAssets RSF Social Finance Offering Investment Products Jewish Fund for Social Justice (CDFI bond fund, Calvert CI Notes) RSF Social Finance (Mezzanine funds, PRIs, loan funds) Acumen Fund Grants + TA to Social Entrepreneurs Echoing Green Non-Profit Finance Fund Capital Partners Skoll Foundation Page 7 of 37

9 Micro-lending ACCION International, and affiliates Omidyar Network Crowd-sourced Micro-lending MicroPlace III. Investment Products Social V.C. + Community Development V.C. Good Capital (Social Enterprise Equity Fund) Pacific Community Ventures SJF Ventures Sustain Venture Capital / Patient Capital Collaborative Investment Product Providers ACCION Frontier Investments Group (micro-lending) Calvert Foundation (Community Investment Notes) Domini Investments (CDFI bond fund; triple bottom-line mutual funds; shareholder activism) J.P. Morgan Social Finance (equity and debt investments, capital markets) Nonprofit Finance Fund Lending (CDFI bond fund) Pacific Community Ventures, LLC (equity investments, double bottom-line screen) Root Capital Loan Fund (debt fund for rural areas in developing countries) Arabella Philanthropic Investment Advisors Investment Advisors and Consultants Equilibrium Capital InSight, part of Pacific Community Ventures Imprint Capital Advisors J.P. Morgan Social Finance Page 8 of 37

10 APPENDIX II: Field Scan Profiles ACCION ACCION 501c(3) Philanthropists; investors Equity investments: Gateway Fund - emerging market micro-finance Frontier Investments - financial technology sector to benefit the poor ACCION Investments - micro-finance institutions Poverty-reduction ACCION's Bridge Funds, Gateway, and Frontier Investment funds combined represent $240 million under management. ACCION Investments has $86 million under management. In the area of investing, ACCION provides early-stage equity, quasi-equity financing and loan guarantees to help MFIs become independent of donor funds, build their capital base, attract deposits and attain financial leverage to expand their reach. INVESTMENT PRODUCTS: Fund Providers [Frontier Investments] PHILANTHROPIC: Micro-lending [ACCION International] Members of the GIIN. Not clear that they are seeking investors to get into their product line -- more emphasis is on the donors. The fund investors are mentioned very briefly as being US investors and government entities. Page 9 of 37

11 Acumen Fund Acumen Fund 501c(3) Public Charity Individual donors, social enterprise entrepreneurs Patient capital investments with returns in 8-15 years Poverty-reduction Acumen recycles investment returns into new business opportunities; there is no return to donors PHILANTHROPIC: Grants / T.A. to Social Entrepreneurs Member of the GIIN. Seems to be a huge enterprise. Ashoka Fourth Sector 501c(3) Social enterprise entrepreneurs Fellowships and support networks Develop collaborative models with and between socialchange enterprises To ensure that the leading ideas for social change are fully developed and sustained, we have designed an approach that offers critical interventions on three levels the individual, the group, and the sector. Ashoka may also offer early-stage funding through investments and grants. Develop the field and provide technical assistance CONVENER + T.A.: Social Enterprise Entrepreneurs Additional Subsector(s) PHILANTHROPIC: Grants + T.A. to Social Entrepreneurs Page 10 of 37

12 Arabella Philanthropic Investment Advisors Arabella For-profit Affiliated with two subordinate public charities Individual and institutional philanthropists Research Reportedly developing a new product Current work is a report on Impact Investment; there is also a staff member who is the director of impact investing : Christa Velasquez is Senior Associate for Impact Investing at Arabella Advisors and a recognized leader in the social investing space. She spent nine years as Director of Social Investments at the Annie E. Casey Foundation, Facilitate grants and investments in philanthropy INVESTMENT ADVISORS + CONSULTANTS Has taken over BluePrint R+D, which has done research work for clients in the Impact Investing space. Page 11 of 37

13 B-Lab B Lab 501c(3) For-profit and nonprofit business; legislators; general public Screening companies with a social impact screen Develop GIIRS standards to report on impact to equity investors Legislative action Community of B Corps companies The Global Impact Investing Ratings System (GIIRS) should drive institutional investment to high impact global private equity investments. Advance supportive public policies, including creation of a new corporate form and incentives for sustainable business. (1) Developing and disseminating a legal framework to institutionalize stakeholder interests within existing corporate law; (2) certifying and rating B corporations; and (3) creating and promoting a powerful unifying brand. Additional Subsector(s) CONVENER + T.A.: Landscape Definition Incubated by a $2.5mm Rockefeller grant at Investors Circle. None Page 12 of 37

14 Calvert Foundation Calvert 501c(3) Investors and Philanthropists Calvert Community Investment Notes (debt instruments) Starting at just $20, our Community Investment Note is available in various terms and rates up to 2%. At maturity, you get your money back with interest. Poverty reduction, loans to social enterprises PHILANTHROPIC: Donor Advised Funds INVESTMENT PRODUCTS: Fund Providers Calvert Foundation has nearly $200 million invested in 250 community organizations in all 50 states and over 100 countries. Our portfolio comprises investment in a diversified mix of high-impact organizations whose missions cover a range of social causes and innovations, including affordable housing, microfinance, Fair Trade coffee, small business development, and the establishment of essential community facilities such as charter schools, daycare centers and rehabilitation clinics. Page 13 of 37

15 Criterion Ventures Criterion For-profit Investors and institutions Events including Structure Labs and invite-only Convergence gatherings for social change thought leaders Consulting for philanthropists, new ventures Criterion Ventures works in the social change space. Clients and partners include individuals and organizations creating entities focused on creating a better world in areas such as health care, education, poverty and religion. Develop and support social-change projects CONVENER + T.A.: Investors, Institutions, Etc. An equity partner (and the incubator of) Good Capital. Frequent appearance on conference and convening panels in the Impact Investment space. Page 14 of 37

16 Domini Investments Domini For-profit Investors Triple bottom-line screen for mutual fund product Shareholder activism CDFI bond fund Echoing Green Finance-first investments INVESTMENT PRODUCTS: Fund Providers Most commonly-cited competitors are Calvert Investments, PAX World Mutual Funds. Echoing Green 501c(3) Public charity Entrepreneurs Seed-funding grants and state-up capital investments Fellowship program with individual-level grants Echoing Green s work is supported by private contributions from corporations, foundations, and individuals. [...] Since our founding almost 25 years ago, Echoing Green has invested over $30 million in seed funding to over 500 social entrepreneurs and their innovative organizations. Social, environmental and economic change PHILANTHROPIC: Grants / T.A. to Social Entrepreneurs Page 15 of 37

17 Equilibrium Capital Equilibrium For-profit Social-enterprise asset managers Impact-first and finance-first investors New financial products / asset management vehicles Industry research We work with our asset managers across the above three phases to build a scalable organization that can manage hundreds of millions of dollars of institutional capital. [...] We welcome our investors and clients to participate at any phase of our asset managers development to help create the desired risk-return profile and impact. Our asset managers generate superior returns due to their operating expertise and unique investment strategies, including: sustainable real estate, integrated land management, water and wastewater, and energy resource management. Develop marketplace by bringing new vehicles to market INVESTMENT ADVISORS + CONSULTANTS Drummond Pike joined Equilibrium in Q Page 16 of 37

18 Fourth Sector Network Fourth Sector 501c(3) Fourth Sector and its tools are housed at Calvert Foundation (see Donate information for more) Everyone in the space Offer opportunities to learn / engage by role Crowd-sourced learning, discussion groups, eventsaggregator along with a growing online directory and legaldocument library View the growing directory online at fourth-sector-directory Map and connect the field CONVENER + T.A.: Landscape Definition The site and its tools are primarily volunteer-driven. Page 17 of 37

19 Global Impact Investing Network GIIN 501c(3) The GIIN operates under the fiscal sponsorship of Rockefeller Philanthropy Advisors. The GIIN puts special emphasis on major players in impact investing Learning / landscape products are for everyone in the space Investors Council Ongoing development of the Impact Reporting and Investment Standards (IRIS) guidelines The Investors Council targets investors with significant capital already invested or intended for investment with a clear social or environmental impact. Members are heavyweights in the field and include private foundations, public charities, financial services and philanthropic investment firms. Investors Council activities include convenings, field-building activities, research and tailored support for members. IRIS: A common social and environmental vocabulary also enables the aggregation of data from different providers and data collection systems. Develop the field; Organizations that adopt the IRIS definitions for their impact reporting can contribute data to the GIIN, which will produce industry-wide benchmarks and support related analysis by intermediaries, principal investors, academics, and enterprises themselves. CONVENER + T.A.: Landscape Definition IRIS is working in conjunction with other efforts, including Pulse, a portfolio data management system developed by Acumen Fund and managed by App-X, and the Global Impact Investment Ratings System (GIIRS). Page 18 of 37

20 Good Capital GoodCap For-profit Investors Social enterprise equity fund (Social Enterprise Expansion Fund, LP) SoCap conference (incubated at GoodCap) HUBsf (shared social enterprise space) The Social Enterprise Expansion Fund provides equity and equity-like growth capital to social enterprises that are ready to expand. We target social enterprises (both for profit companies and nonprofit organizations with earned income) with scalable business models that have the potential to create systemic and large-scale social change and generate an attractive return for investors who have the right kind of human and financial capital. Build the marketplace of both ideas and capital in impact investing CONVENER + T.A.: Investors, Institutions, Etc. INVESTMENT PRODUCTS: Social V.C. + Community Development V.C. As with Calvert Foundation s CI Notes and GIV Platform, ImpactAssets and SoCap, Good Capital was founded by Tim Fruendlich. Page 19 of 37

21 ImpactAssets IA 501c(3) Philanthropists Full-service donor advised fund coupled with impact investments at The Giving Fund What if your donor advised fund could do even more? What if, in addition to offering a turnkey solution for your charitable activity, it allowed you access to highly customizable investment options from which you could create better outcomes for people and the environment the world over? Provide impact investment services directly to philanthropists PHILANTHROPIC: Donor Advised Funds The Giving Fund, its primary impact investment offering ( Global Impact Ventures, or GIV, platform) and the bases for ImpactAssets were all incubated at Calvert Foundation. The Giving Fund reports investments of $50mm+ with 400+ donors. Investment options beyond the GIV Platform are Calvert s Community Investment Notes and SRI mutual funds. Donors with $500K+ accounts at IA can craft their own custom portfolios using their own financial advisors. IA is developing new products. Page 20 of 37

22 Imprint Capital Advisors Imprint For-profit Investors: finance-first and impact-first To help clients navigate the profusion of mission investing approaches and opportunities, we focus them on two distinctive entry points: Market-led: Start with an existing financial objective and asset allocation and search for strategies and managers that fit within these parameters, while also having positive mission impact. Mission-led: Start with a mission objective and search for ways to drive similar or greater impact than what would be achieved from a grant portfolio while generating some financial return. Tailored portfolios and investment plans Imprint Capital Advisors is an impact investment firm. We build and manage deeply customized mission investment portfolios for institutional investors. A balance of financial returns and social change INVESTMENT ADVISORS + CONSULTANTS Possible that Imprint would be good partners. Past and current clients include large philanthropic institutions (e.g. Rockefeller) for research and, presumably, portfolio development. Page 21 of 37

23 Investors Circle IC Non-profit Investors A network of 150 angel investors, professional venture capitalists, foundations and family offices, two-thirds of IC members are individuals and one-their are institutional. Convenings branded as Venture Fairs Circulating stream of investment opportunities into forprofit, sustainable companies We invite early-stage entrepreneurs to apply to present to our network of socially responsible angel investors, venture capitalists, foundations, and family offices at our next Venture Fair Catalyze early stage capital investments CONVENER + T.A.: Investors, Institutions, Etc. See also: Listings for SJF Institute and SJF Ventures Incubator of B Lab, Patient Capital Collaborative, and Slow Money. Formerly ran an investment portfolio, Capital Commons, through the IC Foundation. Page 22 of 37

24 Jewish Funds for Social Justice JFSJ 501c(3) Public charity Philanthropists Organization also targets grassroots donors in the Jewish community, but investment products are at the $1K+ mark TEDF, a national pool of investments that puts money in targeted CDFIs JFSJ Community Investment Initiative, a Calvert CI Notes product Investors can make a loan of $18,000 or more to [...] a national loan fund organized to pool investments from the Jewish community and place the money into community development financial institutions. Invest $1,000 or more in the JFSJ Community Investment Initiative, a socially responsible investment program [...] The Initiative is facilitated through the purchase of Calvert Foundation's Community Investment Note. Economic and social justice, broadly defined PHILANTHROPIC: Offers Investment Products On a broader level, the organization makes direct grants, engages in service-learning projects, organizes synagogues -- and sees impact investing as a key to a portfolio of social-change activities Page 23 of 37

25 J.P. Morgan Social Finance JP Morgan SF vestbk/solutions/ssf For-profit No clear documentation Finance-first Individual and institutional investors Equity and debt investments Capital markets (private placements, fund structuring) Research services Finance-first products Social Finance aims to help scale the impact investing market by investing the firm's own capital in social impact investments, creating and distributing impact investment products for other investors, providing thought leadership and research on the market FINANCIAL SERVICES PROVIDERS Provide direct philanthropic support to various micro-finance and social entrepreneurship organizations. Founding sponsor of GIIN, participants in the development of the GIIRS (Global Impact Investing Ratings System). Page 24 of 37

26 MicroPlace MicroPlace 501c(3) Low-dollar investors Aggregates individual investments (as low as $20) to direct through issuers of microfinance projects in the developing world Platform for making investments with debt instruments primarily offered by Oikocredit, FINCA and Calvert CI Notes Simply stated, MicroPlace enables you to make investments in the fight against worldwide poverty -- a $300 billion problem.* Poverty-reduction with a global focus PHILANTHROPIC: Crowd-sourced micro-lending This is a PayPal company. MicroPlace is the marquee sponsor of the SoCap Page 25 of 37

27 Nonprofit Finance Fund NFF 501c(3) Entrepreneurs Investors, Institutions Consulting and technical support, including Capital Access Services for funders and nonprofits NFF CDFI loan fund For funders, we provide support with structuring of philanthropic capital and program-related investments, manage capital for guided investment in programs, and provide advice and research to help maximize the impact of grants. Since 1980 NFF has made over $235 million in loans to nonprofits in support of over $1.3 billion in projects. Support the entire continuum from nonprofit to philanthropy offering loans, consulting, research, PRI- and deal-structuring CONVENER + T.A.: Investors, Institutions, Etc. CONVENER + T.A.: Social Enterprise Entrepreneurs INVESTMENT PRODUCTS: Fund Providers [CDFI loan fund] Page 26 of 37

28 Omidyar Network Omidyar Network LLC + 501c(3) PF Entrepreneurs Grants and PRIs Access to capital and investments in tech We invest in for-profit entities through our LLC. [...] We believe that business can create extraordinary opportunity and value, and that market-based solutions can generate significant social returns. We make grants and program-related investments through our 501(c)(3) entity. Focus on micro-finance, accountable government, connected citizenry PHILANTHROPIC: Micro-lending Member of the GIIN. Included in this list not because they offer products, but because of their involvement in so many networks. Page 27 of 37

29 Pacific Community Ventures PCV 501c(3) CA-based socialenterprise entrepreneurs T.A. to small businesses that match the job-creation / LMI screen CA-based job creation Through its cornerstone service, the Business Advisory Program, PCV utilizes the vast experience and enthusiasm of experienced professionals looking for meaningful, effective ways to contribute their own skills and resources to develop enterprises and strengthen LMI communities in California. [...] Other services available to entrepreneurs in PCV's advised and financed portfolios include: Strategy Roundtables, Educational Workshops, and One-on-One Advising. CONVENER + T.A.: Social Enterprise Entrepreneurs Affiliated with PCV InSight and PCV LLC, the social venture capital provider. Page 28 of 37

30 Pacific Community Ventures Venture Funds PCV Venture Funds LLC Investors Equity investments in California small businesses, using double bottom-line screen (for job creation in low/moderate income [LMI] areas) Pacific Community Ventures, LLC specifically targets companies in need of capital and resources that have the potential to grow through one or more of the following strategies: Broadening distribution channels and product lines Geographic expansion Improving systems infrastructure and business processes to allow for greater scale Expansion of operational capacity Acquiring complimentary businesses Socially responsible investing in CA business INVESTMENT PRODUCTS: Social V.C. + Community Development V.C. Affiliated with PCV InSight and PCV Inc. Page 29 of 37

31 PCV InSight InSight ght/ 501c(3)?? - No clear documentation Major institutions (philanthropic, governmental) Consulting services: Impact evaluation and policy research Prominent investment and philanthropic institutions, including Rockefeller, CalEndow, CalPERS, Annie E. Casey and Northwest Area Foundation Insight recommends policy changes to clear the way for effective impact investing, performance measurement, and small business needs and development Develop the field INVESTMENT ADVISORS + CONSULTANTS Affiliated with PCV Inc. and PCV Venture Fund. InSight is the thought-leadership practice at PCV; it may be an earned income stream for PCV Inc. Page 30 of 37

32 PRImakers Network PRImakers Membership association Foundations Members include 120+ foundations of all sizes and focus areas PRI Activity database for members Convening / networking, including workshops, educational forums, and the PRI Institute PRI Activity Database containing historical data on more than 1,750 PRIs. The Network also hosts a PRI Institute, an intensive, 2.5 day workshop on PRIs and social investing. Build PRI space so philanthropic money can leverage more change CONVENER + T.A.: Investors, Institutions, Etc. Page 31 of 37

33 Root Capital Root Capital 501c(3) Entrepreneurs, investors T.A. for business development Root Capital Loan Fund (debt instrument) We provide capital, deliver financial training, and strengthen market connections for small and growing businesses that build sustainable livelihoods and transform rural communities in poor, environmentally vulnerable places. Sustain rural business economies in developing countries CONVENER + T.A.: Social Enterprise Entrepreneurs INVESTMENT PRODUCTS: Fund Providers Referenced as grantees of many corporate and financial services foundations. The loan fund is regularly mentioned in other providers portfolios. Page 32 of 37

34 RSF Social Finance RSF 501c(3) Investors Entrepreneurs Mezzanine fund to provide major growth capital, PRI funds, direct grant-making, debt instruments Donor Advised Fund Today, RSF offers investing, lending, and giving services to individuals and enterprises committed to improving society and the environment. We currently have over one thousand clients who are creating enormous positive impact by helping us redirect the flow of money from global capital markets to local ones. Social-impact investment, lending and direct grant-making PHILANTHROPIC: Donor Advised Funds PHILANTHROPIC: Offering Investment Products Among the most comprehensive approaches in the field. Page 33 of 37

35 SJF Institute SJFI 501c(3) Entrepreneurs and investors T.A. including mentorship, written resources and workshops Focus on environmental-impact and goodjobs creation In summary, the world s challenge is to create good jobs while preserving the environment. Support green-jobs economy CONVENER + T.A.: Social Enterprise Entrepreneurs SJFI has merged, and is now managing, Investors Circle after years of partnership. SJF Ventures SJF Ventures For-profit Investors Venture fund for clean-tech, business and Web-enhanced services, and premium consumer products Through its investment funds, the firm provides equity financings from $1MM to $10MM, solo or in syndicates, to companies seeking expansion capital Build clean, sustainable jobs economy INVESTMENT PRODUCTS: Social V.C. + Community Development V.C. Allied with 501c(3) SJF Institute. Limited partnerships with major financial services corporations including Credit Suisse, Deutsche Bank, Macquarie, Wells Fargo, Calvert Investments, Merrill Lynch / BoA, Citi, Key Bank, MetLife along with private foundations, accredited individual investors and asset management companies. Page 34 of 37

36 Skoll Foundation Skoll 501c(3) Private foundation Entrepreneurs Grants Various types of investments and capital Convenings including the Skoll World Forum conference and the Social Edge online community For Skoll Awardees with earned revenue and/or for-profit business models, we may augment grant funding with below-market interest rate loans or guarantees when there is an opportunity to significantly increase programmatic impact or scale. We also invest in financial intermediaries who accelerate access to capital and other resources to those in underserved markets. Peace and prosperity focus PHILANTHROPIC: Grants / T.A. to Social Entrepreneurs Social Capital Markets SoCap For-Profit No clear statement Everyone in the space Conferences In addition to conferences, SoCap hosts microconferences designed to secure investments for invited projects Map and connect the field CONVENER + T.A.: Investors, Institutions, Etc. Good Capital claims credit for incubating SoCap. The annual conferences are regularly referenced on funds sites. Page 35 of 37

37 Sustain Venture Capital SustainVC For-profit Individual investors Patient Capital Collaborative (PCC), which invests in triple bottom-line seed and growth capital PCC invests in companies that apply for financing through Investors' Circle, an association of accredited investors who provide "Patient Capital for a Sustainable Future." Through PCC, SustainVC invests as the lead or participant in rounds of equity and equity-related securities as small as $500,000 and as large as $5,000,000. Investments target health, sustainability, community and international development, education. INVESTMENT PRODUCTS: Social V.C. + Community Development V.C. Note the connections between Investors Circle (PCC receives applications for funding through IC) and B Lab (which was incubated at IC; also, PCC is one of the first funds to receive a GIIRS rating developed by B Lab). Page 36 of 37

38 ADDENDUM: Major Foundations Involved in Impact Investments Financial information from GIIN Investors Council Rockefeller Foundation Comes up over and over again; seems like the heart of the philanthropic move towards impact investing. Major funders of almost all thought-leaders in the space (according to current scan), with work done by foundation staff as well. $20mm+ in PRI allocations. Bill and Melinda Gates Annie E. Casey Ford David & Lucille Packard W.K. Kellogg Allocated $400mm in PRI in Early PRI investments from this pool of capital include $10mm loan to Root Capital to scale operations in sub-saharan Africa. Established a social investments program in 2002, and increased the allocation of the endowment dedicated to social investments to $125mm in Invested more than $550mm in PRIs since Current PRI Fund is approximately $280mm, invested in the form of equity investments and long-term loans, primarily through intermediaries. Current PRIs top $180mm in the form of loans, guarantees and equity investments. The foundation is also open to making mission-related investments but PRIs have been the most suitable tool to date, according to self-reported information. Allocated $100mm of its endowment assets for a pilot program in mission-related investing. $75mm is targeted to opportunities in the US, $25mm currently allocated for investments in southern Africa. Foundation invests across three asset classes -- cash, fixed income, and private equity -- with an expectation of market-rate returns. Page 37 of 37