Category Archives: Impact Investing

From Value to Worth – Why The Impact Investing “Asset Class” Debate Matters

Over two weeks ago, I posted a poll asking whether impact investing should be considered an “asset class”. The fact that the results currently come in at 60/40 (after many votes) in favor of NO asset class belies the considerable debate that has surrounded this topic both on this blog and other online forums. I am still a bit surprised about how many people have weighed in on a question that would appear to be mostly a technicality… but is it really just that?

Without being able to do justice to the many, many arguments constructed in favor and against the “asset class” question, I would like to take a moment to restate my understanding of what people have said on this topic. Then, in a broader sense, I hope to convert part of this controversy into something of meaning and, in typical fashion for this blog, will attempt to identify what really is at stake at the end of the day in dealing with this question.

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Weekly Poll #6 – Should Impact Investing Become An “Asset Class”?

Weekly Poll #6:

Should Impact Investing Become An “Asset Class”?

In a recent book I reviewed, the authors Antony Bugg-Levine and Jed Emerson ask an important question: should impact investing be considered an “asset class”, i.e., the view favored by some bankers or wealth managers in search for new business?

The other view is this: should impact investing otherwise not be considered a “transformational paradigm” by which all our investments should be subjected to their social + financial returns? Is that even possible, practical, or desirable?

Of course I have my own view, and I am interested to take that discussion further in the future but for now, I would rather love to get YOUR opinion which view you favor. Feel free to leave comments with your rationale.

Results are immediately visible as you click!

As always, please do feel free to share any suggestions for future polls you may find interesting to learn more about your fellow Good Generation comrades and their views on various topics. I’d be happy to pick up on some of these ideas in the future.

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Good Profile – CJ Fonzi (Dalberg Global Development Advisors / The Global Impact Investing Network)

Good Profiles feature members of our Good Generation who are either out there in the field doing interesting work or still in the trenches of schools and institutions waiting to make their mark on the world. Have your own story to tell? Know someone who would be great to be profiled? Please sign-up or leave a note here!

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What do you do for a living nowadays?

I am currently a Senior Consultant with Dalberg Global Development Advisors, based in the Johannesburg, South Africa office. Dalberg is a management strategy consulting firm, that works with governments, NGOs, foundations, and for profit businesses that are seeking to address social and environmental development issues. Since joining Dalberg my focus has been on impact investing, impact measurement, and SME growth.

I joined Dalberg 2 months ago after spending over 2 years working for the Global Impact Investing Network (the GIIN). The GIIN is a not for profit organization which was set up to accelerate the growth of the impact investing industry. At the GIIN I managed the Impact Reporting and Investment Standards initiative (IRIS), which provided a common language, and a set of metrics for investors to measure the social, environmental, and financial performance of impact investments.

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Book Review – “Impact Investing”

Recently read:

Impact Investing: Transforming How We Make Money While Making A Difference (Antony Bugg-Levine and Jed Emerson)

My grade (1 to 5): 3 – attempt to bring into one book the history, definition, implications, examples, controversies around and potential of impact investing to create a world where investors are more aligned to achieve “blended value” of both financial and social returns to their money; technical content insightful but evangelizing language and metaphors a bit overdrawn and slightly exaggerated

Key Ideas:

  • The first part of the book is dedicated to definitions of impact investing and spends some time with color around the many different areas that it encompasses, such as international development, microfinance and social enterprises. The second part of the book talks about the implications of impact investing in terms of how our systems, leadership style, measurement systems and attitudes must change to embrace the opportunities presented by blended value approaches, and why those approaches should become mainstream in the future.
  • The authors spend considerable time with case studies to illustrate the various instances of impact investing at work by various stakeholders, such as asset managers, investment bankers, private equity practitioners, development professionals and of course, social entrepreneurs. Throughout the book, the authors try to provide suggestions of how to overcome what they call a currently “bifurcated world” with investing for purely financial return on the one end, and giving money away through charity motives on the other.

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Good Profile – Chelsea Katz (Kellogg Net Impact / Fresh Takes Kitchen)

Good Profiles feature members of our Good Generation who are either out there in the field doing interesting work or still in the trenches of schools and institutions waiting to make their mark on the world. Have your own story to tell? Know someone who would be great to be profiled? Please sign-up or leave a note here!

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What are you up to these days?

I am wrapping up my final quarter at the Kellogg School of Management at Northwestern University and will complete my MBA in less than two months!  While at Kellogg, I’ve focused on Social Enterprise (SEEK) and Entrepreneurship academic concentrations and have taken several great experiential or project-based courses including Sustainability Lab, Innovate for Impact, and Impact Investing (taught by David Chen of Equilibrium Capital Partners). I’ve also been heavily involved in the Net Impact Community.  This year I served as the VP of Careers for the Net Impact Club and chaired the Innovating Social Change Conference.  In my first year I led the Social Impact Career Trek to the Bay Area and the Global Health Initiative HIV/AIDS diagnostics market research trip to Kenya. 

What did you do prior to school?

I spent three years in Accenture’s Talent & Organization Performance practice where I provided consulting services to a variety of cross-industry clients with a focus on change management, organization design, and talent strategy. While at Accenture, I also provided extensive pro-bono consulting services to a number of nonprofit organizations including Accenture Development Partnerships, i.c.stars, and Junior Achievement.  I was also very involved in Corporate Citizenship efforts and developed a collaborative internal network of social impact enthusiasts dubbed the “Accenture Network for Social Impact” and managed Accenture’s sponsorship of the national Net Impact conference.  After a year as a pro-bono consultant, I transitioned to a full-time strategic project manager role with i.c.stars – an innovative Chicago nonprofit organization that uses project-based learning and full immersion teaching to provide opportunities for change-driven, inner-city community leaders to develop skills in business and technology. At i.c.stars I managed a portfolio of social enterprise consulting projects, fundraising events, and strategic initiatives, and led a cycle of interns through the first project in the training program.

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Update – International Impact Investing Challenge 2012 – Winners Announced!

UPDATE – I3C is finished now and winners have been announced, along with all the finalists’ presentations!

Congratulations to Stanford School of International Policy Studies (1st), Northwestern University Kellogg School of Management (2nd) and University of Chicago Harris School of Public Policy (3rd)!

Too bad I couldn’t be in San Francisco for the  final judging rounds but very interesting to see 2 policy schools and only 1 MBA program in the final selection bracket – now how many impact investors nowadays have public policy school graduates in their teams? Would be interesting to hear for sure.

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Good & Gasp #3 – Social Enterprise in Chinese, EcoMind, Common Wealth, Muppetgate, Human Engineering

Good & Gasp #3

Social Enterprise in Chinese, EcoMind, Common Wealth, Muppetgate, Human Engineering

Themes that caught my attention, interest or made my eyes roll while roaming the web world of doing good:

  • Social Enterprise in Chinese – 3 definitions of “social enterprise” in the same (huge) country?
  • EcoMind & Mental Myths – do the “end of growth” pessimists have it all wrong?
  • Common Resource Use Charges – should companies pay for polluting (and should we get some of the proceeds of such “common wealth” charges)?
  • Goldman Sachs’ Muppetgate – why do GS’ “muppet” clients keep coming back for more?
  • Human vs. Climate Engineering – should we consider genetically “making” humans more environmentally friendly?

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Update – International Impact Investing Challenge 2012 – Finalists Announced!

UPDATE – Round 1 of I3C is finished now and finalists have been announced! Was a fun list I went through with neat ideas and glad to see 11 teams advancing to San Francisco for the April 13 live presentations.

Finalists below. Congratulations to folks from Columbia SIPA, Duke Fuqua, Kellogg, Stanford IPS, Berkeley Haas, UCLA Andersen, Chicago Harris School, USC Moore School, and USC Marshall School – excellent job!

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Shoutout – International Impact Investing Challenge 2012

Don’t ask me why they thought I would be good for this, but somehow I find myself this week with the honor of helping out at I3C with the evaluation of submissions for innovative ideas around financial instruments and vehicles for impact investing proposed by sharp graduate students from all over the place.

In the words of the competition:

The International Impact Investing Challenge is a pitch competition focused on designing investment vehicles that create sustainable impact and are of the size and scope that would be of interest to institutional investors. Graduates students are challenged to propose and defend a sustainable investment strategy for an institutional investor who makes sustainable investments.

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Good Profile – Joan Yao (LGT Venture Philanthropy)

Good Profiles feature members of our Good Generation who are either out there in the field doing interesting work or still in the trenches of schools and institutions waiting to make their mark on the world. Have your own story to tell? Know someone who would be great to be profiled? Please sign-up or leave a note here!

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What do you do for a living nowadays?

I work as the investment manager for Southeast Asia of LGT Venture Philanthropy, a non-profit impact investor with operations in five continents around the world. Our mission is to increase the sustainable quality of life of less-advantaged people, by finding and supporting organizations with outstanding social and environmental impact. We also inspire clients to engage in active philanthropy, and provide philanthropic advisory and implementation services.

As an investment manager for LGT Venture Philanthropy, I am primarily responsible for sourcing and screening potential deals in Southeast Asia. Based in the region, I prepare the relevant investment documents about organizations, and discuss these with my team and board. I am involved in every step of due diligence and deal execution. I am also in charge of monitoring and providing ongoing strategic support to portfolio organizations over the course of our engagement. I represent LGT VP during regional conferences, and more importantly, provide local insight and guidance to LGT VP’s top management regarding the appropriate strategy and approach for Southeast Asia.

This year, for example, we are launching the Impact Ventures Accelerator Program. The iVAP provides hands-on business consulting and customized financial support of up to US$50,000 to outstanding, early-stage social ventures in Southeast Asia with a high potential for scaling-up and positive impact. I developed and pitched this program to our board in response to a perceived need in the region for earlier-stage support of organizations, and in order to build LGT VP’s pipeline and impact in the region.

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