Rod Schwartz. Social Impact Investment
-
Upload
fonds-dots -
Category
Documents
-
view
218 -
download
0
Transcript of Rod Schwartz. Social Impact Investment
![Page 1: Rod Schwartz. Social Impact Investment](https://reader031.fdocuments.us/reader031/viewer/2022021320/577cc3711a28aba711960a6c/html5/thumbnails/1.jpg)
8/10/2019 Rod Schwartz. Social Impact Investment
http://slidepdf.com/reader/full/rod-schwartz-social-impact-investment 1/41
Social Entrepreneursh ip Forum , Riga
11 November 2014
Rodney SchwartzCEO, ClearlySo
Bringing impact to investment
![Page 2: Rod Schwartz. Social Impact Investment](https://reader031.fdocuments.us/reader031/viewer/2022021320/577cc3711a28aba711960a6c/html5/thumbnails/2.jpg)
8/10/2019 Rod Schwartz. Social Impact Investment
http://slidepdf.com/reader/full/rod-schwartz-social-impact-investment 2/41
Setting the Scene on Impact Investing:
What drives investors?
![Page 3: Rod Schwartz. Social Impact Investment](https://reader031.fdocuments.us/reader031/viewer/2022021320/577cc3711a28aba711960a6c/html5/thumbnails/3.jpg)
8/10/2019 Rod Schwartz. Social Impact Investment
http://slidepdf.com/reader/full/rod-schwartz-social-impact-investment 3/41
Object ives for to day
• Introduce myself
• Provide a background to these developments
• Offer some thoughts on this thing we call social or impact investment
• Provide some examples of these wide-ranging enterprises
• Explore different investor types and what they are looking for
• Briefly explain what ClearlySo does
• HAVE I MISSED ANYTHING???
![Page 4: Rod Schwartz. Social Impact Investment](https://reader031.fdocuments.us/reader031/viewer/2022021320/577cc3711a28aba711960a6c/html5/thumbnails/4.jpg)
8/10/2019 Rod Schwartz. Social Impact Investment
http://slidepdf.com/reader/full/rod-schwartz-social-impact-investment 4/41
Caveats and my own “hidden” agendas
• Combine practical experience with theory and ClearlySo activitieswith what we see elsewhere
• Predominantly a UK oriented view, for the most part—although
informed by experience elsewhere
• My own interests—”all things spring from the personal”
• Would be delighted to entice one of you into becoming an active in
this area—I am NOT objective!
![Page 5: Rod Schwartz. Social Impact Investment](https://reader031.fdocuments.us/reader031/viewer/2022021320/577cc3711a28aba711960a6c/html5/thumbnails/5.jpg)
8/10/2019 Rod Schwartz. Social Impact Investment
http://slidepdf.com/reader/full/rod-schwartz-social-impact-investment 5/41
My own careertrajectory
![Page 6: Rod Schwartz. Social Impact Investment](https://reader031.fdocuments.us/reader031/viewer/2022021320/577cc3711a28aba711960a6c/html5/thumbnails/6.jpg)
8/10/2019 Rod Schwartz. Social Impact Investment
http://slidepdf.com/reader/full/rod-schwartz-social-impact-investment 6/41
Social economy approach
within the context of other models
![Page 7: Rod Schwartz. Social Impact Investment](https://reader031.fdocuments.us/reader031/viewer/2022021320/577cc3711a28aba711960a6c/html5/thumbnails/7.jpg)
8/10/2019 Rod Schwartz. Social Impact Investment
http://slidepdf.com/reader/full/rod-schwartz-social-impact-investment 7/41
A sustainability crisis…..our traditional view
![Page 8: Rod Schwartz. Social Impact Investment](https://reader031.fdocuments.us/reader031/viewer/2022021320/577cc3711a28aba711960a6c/html5/thumbnails/8.jpg)
8/10/2019 Rod Schwartz. Social Impact Investment
http://slidepdf.com/reader/full/rod-schwartz-social-impact-investment 8/41
There is a b roader “Western”susta inabi li ty c r is is
Unsustainable systems
Environmental
Financial
Institutional
Familial/personal
Unjust societies
Unsuccessful economies
Widespread
signs of socialunrest
![Page 9: Rod Schwartz. Social Impact Investment](https://reader031.fdocuments.us/reader031/viewer/2022021320/577cc3711a28aba711960a6c/html5/thumbnails/9.jpg)
8/10/2019 Rod Schwartz. Social Impact Investment
http://slidepdf.com/reader/full/rod-schwartz-social-impact-investment 9/41
The old models/systems for fixing things do not work
(and how we do things is not divinely decreed!):
The government model
![Page 10: Rod Schwartz. Social Impact Investment](https://reader031.fdocuments.us/reader031/viewer/2022021320/577cc3711a28aba711960a6c/html5/thumbnails/10.jpg)
8/10/2019 Rod Schwartz. Social Impact Investment
http://slidepdf.com/reader/full/rod-schwartz-social-impact-investment 10/41
1. Government (tax and spend )
Not awful, but:
• Short term oriented
• Costly to citizens
• Frequently lacking democratic support
• Officials often seen as incompetent, corrupt or both
• They are like “parents” in a dysfunctional family
![Page 11: Rod Schwartz. Social Impact Investment](https://reader031.fdocuments.us/reader031/viewer/2022021320/577cc3711a28aba711960a6c/html5/thumbnails/11.jpg)
8/10/2019 Rod Schwartz. Social Impact Investment
http://slidepdf.com/reader/full/rod-schwartz-social-impact-investment 11/41
The old models/systems for fixing
things do not work:
The charity model
![Page 12: Rod Schwartz. Social Impact Investment](https://reader031.fdocuments.us/reader031/viewer/2022021320/577cc3711a28aba711960a6c/html5/thumbnails/12.jpg)
8/10/2019 Rod Schwartz. Social Impact Investment
http://slidepdf.com/reader/full/rod-schwartz-social-impact-investment 12/41
2. Charity
More connected, but:
• Ineffective at times
• Inefficient—as so much resource is spent on money raising
• Becoming less sustainable in the current fiscal climate
![Page 13: Rod Schwartz. Social Impact Investment](https://reader031.fdocuments.us/reader031/viewer/2022021320/577cc3711a28aba711960a6c/html5/thumbnails/13.jpg)
8/10/2019 Rod Schwartz. Social Impact Investment
http://slidepdf.com/reader/full/rod-schwartz-social-impact-investment 13/41
The old models/systems forfixing things do not work:
The business model
![Page 14: Rod Schwartz. Social Impact Investment](https://reader031.fdocuments.us/reader031/viewer/2022021320/577cc3711a28aba711960a6c/html5/thumbnails/14.jpg)
8/10/2019 Rod Schwartz. Social Impact Investment
http://slidepdf.com/reader/full/rod-schwartz-social-impact-investment 14/41
3. Bu siness
Effective & Efficient, but:
• Unbalanced in terms of objectives
• Generates substantial negative externalities
• Proven to be less sustainable then we thought
• Heavily subsidized by the state
![Page 15: Rod Schwartz. Social Impact Investment](https://reader031.fdocuments.us/reader031/viewer/2022021320/577cc3711a28aba711960a6c/html5/thumbnails/15.jpg)
8/10/2019 Rod Schwartz. Social Impact Investment
http://slidepdf.com/reader/full/rod-schwartz-social-impact-investment 15/41
A new enterprise and investment model:
What are the key components?
![Page 16: Rod Schwartz. Social Impact Investment](https://reader031.fdocuments.us/reader031/viewer/2022021320/577cc3711a28aba711960a6c/html5/thumbnails/16.jpg)
8/10/2019 Rod Schwartz. Social Impact Investment
http://slidepdf.com/reader/full/rod-schwartz-social-impact-investment 16/41
Two views o f the same basic
idea —accord ing to most
By type oforganisation
negatively
screened
assets(SRI funds)
programme
related
investments
grant
making
fully
commercial
assets
mission
resonant
investments
positively
screened
assets
By type of
investment
![Page 17: Rod Schwartz. Social Impact Investment](https://reader031.fdocuments.us/reader031/viewer/2022021320/577cc3711a28aba711960a6c/html5/thumbnails/17.jpg)
8/10/2019 Rod Schwartz. Social Impact Investment
http://slidepdf.com/reader/full/rod-schwartz-social-impact-investment 17/41
Thing s we say
3D investing Risk, return and impact
Third dimension Externalities
}High-impact
Transformative
Disruptive
Impact-centred
Impact-focused
Extraordinary
entrepreneurs
businesses
investors
funds
![Page 18: Rod Schwartz. Social Impact Investment](https://reader031.fdocuments.us/reader031/viewer/2022021320/577cc3711a28aba711960a6c/html5/thumbnails/18.jpg)
8/10/2019 Rod Schwartz. Social Impact Investment
http://slidepdf.com/reader/full/rod-schwartz-social-impact-investment 18/41
Things we don’t say
Socialbusiness
enterprise
investing
entrepreneur
‘The sector’
Corporate business and social
business
Impact as an asset class
![Page 19: Rod Schwartz. Social Impact Investment](https://reader031.fdocuments.us/reader031/viewer/2022021320/577cc3711a28aba711960a6c/html5/thumbnails/19.jpg)
8/10/2019 Rod Schwartz. Social Impact Investment
http://slidepdf.com/reader/full/rod-schwartz-social-impact-investment 19/41
And what is “social” anyway?
![Page 20: Rod Schwartz. Social Impact Investment](https://reader031.fdocuments.us/reader031/viewer/2022021320/577cc3711a28aba711960a6c/html5/thumbnails/20.jpg)
8/10/2019 Rod Schwartz. Social Impact Investment
http://slidepdf.com/reader/full/rod-schwartz-social-impact-investment 20/41
These entrepreneurs DO possess some cons traints,
bu t also certain competi t ive advantages
• Legitimacy/moral authority• Access to free labour
• Ability to sell products at higher prices
• Readier access to publicity
• Access to below market-rate capital due to major changes in the
investment environment!
The interplay of below market rate capital
and intentional social impacts is what
creates the conditions for new
possibilities in finance
![Page 21: Rod Schwartz. Social Impact Investment](https://reader031.fdocuments.us/reader031/viewer/2022021320/577cc3711a28aba711960a6c/html5/thumbnails/21.jpg)
8/10/2019 Rod Schwartz. Social Impact Investment
http://slidepdf.com/reader/full/rod-schwartz-social-impact-investment 21/41
The world o f investm ent in the 1980s
Risk
Return
![Page 22: Rod Schwartz. Social Impact Investment](https://reader031.fdocuments.us/reader031/viewer/2022021320/577cc3711a28aba711960a6c/html5/thumbnails/22.jpg)
8/10/2019 Rod Schwartz. Social Impact Investment
http://slidepdf.com/reader/full/rod-schwartz-social-impact-investment 22/41
Today: “3D Investing”
Risk
Return
![Page 23: Rod Schwartz. Social Impact Investment](https://reader031.fdocuments.us/reader031/viewer/2022021320/577cc3711a28aba711960a6c/html5/thumbnails/23.jpg)
8/10/2019 Rod Schwartz. Social Impact Investment
http://slidepdf.com/reader/full/rod-schwartz-social-impact-investment 23/41
Some examples…
![Page 24: Rod Schwartz. Social Impact Investment](https://reader031.fdocuments.us/reader031/viewer/2022021320/577cc3711a28aba711960a6c/html5/thumbnails/24.jpg)
8/10/2019 Rod Schwartz. Social Impact Investment
http://slidepdf.com/reader/full/rod-schwartz-social-impact-investment 24/41
![Page 25: Rod Schwartz. Social Impact Investment](https://reader031.fdocuments.us/reader031/viewer/2022021320/577cc3711a28aba711960a6c/html5/thumbnails/25.jpg)
8/10/2019 Rod Schwartz. Social Impact Investment
http://slidepdf.com/reader/full/rod-schwartz-social-impact-investment 25/41
It’s not always a sacrifice - there is no
“impact see- saw”
![Page 26: Rod Schwartz. Social Impact Investment](https://reader031.fdocuments.us/reader031/viewer/2022021320/577cc3711a28aba711960a6c/html5/thumbnails/26.jpg)
8/10/2019 Rod Schwartz. Social Impact Investment
http://slidepdf.com/reader/full/rod-schwartz-social-impact-investment 26/41
Sometimes they are early stage
grow th ventures
![Page 27: Rod Schwartz. Social Impact Investment](https://reader031.fdocuments.us/reader031/viewer/2022021320/577cc3711a28aba711960a6c/html5/thumbnails/27.jpg)
8/10/2019 Rod Schwartz. Social Impact Investment
http://slidepdf.com/reader/full/rod-schwartz-social-impact-investment 27/41
…but what drives investors?
![Page 28: Rod Schwartz. Social Impact Investment](https://reader031.fdocuments.us/reader031/viewer/2022021320/577cc3711a28aba711960a6c/html5/thumbnails/28.jpg)
8/10/2019 Rod Schwartz. Social Impact Investment
http://slidepdf.com/reader/full/rod-schwartz-social-impact-investment 28/41
Types o f investors
• Governmental (single country)
• MFI
• Institutional
• Award givers
• Individual investors
![Page 29: Rod Schwartz. Social Impact Investment](https://reader031.fdocuments.us/reader031/viewer/2022021320/577cc3711a28aba711960a6c/html5/thumbnails/29.jpg)
8/10/2019 Rod Schwartz. Social Impact Investment
http://slidepdf.com/reader/full/rod-schwartz-social-impact-investment 29/41
Governmental (single country)
investors
Direct investment funds
• Australia - SEDIF
• UK – Futurebuilders, NESTA, UnLtd
Domestic market-building funds
• Germany – KFW
• UK – Big Society Capital
International development funds
• SDC, Sida, CDC, USAID, etc.
![Page 30: Rod Schwartz. Social Impact Investment](https://reader031.fdocuments.us/reader031/viewer/2022021320/577cc3711a28aba711960a6c/html5/thumbnails/30.jpg)
8/10/2019 Rod Schwartz. Social Impact Investment
http://slidepdf.com/reader/full/rod-schwartz-social-impact-investment 30/41
Mult inat ional Financ ial Ins t i tut ions
• UN SEED initiative
• European Investment Fund (plus the EIB)
• IFC (studying impact investment)
![Page 31: Rod Schwartz. Social Impact Investment](https://reader031.fdocuments.us/reader031/viewer/2022021320/577cc3711a28aba711960a6c/html5/thumbnails/31.jpg)
8/10/2019 Rod Schwartz. Social Impact Investment
http://slidepdf.com/reader/full/rod-schwartz-social-impact-investment 31/41
Ins t i tut io nal Investors
• Impact investment funds (e.g. Acumen, Social Venture Fund, Bridges
Ventures, LGT Venture Philanthropy)
• Renewal Partners. (50 year strategy/500 year intention Carole Newell)
• Fund managers (e.g. AXA Investment Managers)
• Banks and financial firms (e.g. Deutsche Bank)
• Pension funds and life insurers (e.g. Waltham Forest)
• Foundations (e.g. Kellogg, Esmee Fairbairn, Bertelsmann)
• Housing associations
![Page 32: Rod Schwartz. Social Impact Investment](https://reader031.fdocuments.us/reader031/viewer/2022021320/577cc3711a28aba711960a6c/html5/thumbnails/32.jpg)
8/10/2019 Rod Schwartz. Social Impact Investment
http://slidepdf.com/reader/full/rod-schwartz-social-impact-investment 32/41
“Award givers”
• Skoll
• Schwab
• Global Social Venture Competition
• SEIF (Switzerland)
![Page 33: Rod Schwartz. Social Impact Investment](https://reader031.fdocuments.us/reader031/viewer/2022021320/577cc3711a28aba711960a6c/html5/thumbnails/33.jpg)
8/10/2019 Rod Schwartz. Social Impact Investment
http://slidepdf.com/reader/full/rod-schwartz-social-impact-investment 33/41
Ind iv idual Investors
• HNWIs
• Family offices
• Private banks
• IFAs• Retail funds (e.g. Threadneedle/Big Issue)
• Crowdfunding and community share issues
• Justgiving, Kiva, Kickstarter, CrowdCube
![Page 34: Rod Schwartz. Social Impact Investment](https://reader031.fdocuments.us/reader031/viewer/2022021320/577cc3711a28aba711960a6c/html5/thumbnails/34.jpg)
8/10/2019 Rod Schwartz. Social Impact Investment
http://slidepdf.com/reader/full/rod-schwartz-social-impact-investment 34/41
And where does their moneyactually come from?
![Page 35: Rod Schwartz. Social Impact Investment](https://reader031.fdocuments.us/reader031/viewer/2022021320/577cc3711a28aba711960a6c/html5/thumbnails/35.jpg)
8/10/2019 Rod Schwartz. Social Impact Investment
http://slidepdf.com/reader/full/rod-schwartz-social-impact-investment 35/41
From you and me!
![Page 36: Rod Schwartz. Social Impact Investment](https://reader031.fdocuments.us/reader031/viewer/2022021320/577cc3711a28aba711960a6c/html5/thumbnails/36.jpg)
8/10/2019 Rod Schwartz. Social Impact Investment
http://slidepdf.com/reader/full/rod-schwartz-social-impact-investment 36/41
What dr ives investors?
• Governmental (single country)
• MFI
• Institutional
• Award givers• Individuals
![Page 37: Rod Schwartz. Social Impact Investment](https://reader031.fdocuments.us/reader031/viewer/2022021320/577cc3711a28aba711960a6c/html5/thumbnails/37.jpg)
8/10/2019 Rod Schwartz. Social Impact Investment
http://slidepdf.com/reader/full/rod-schwartz-social-impact-investment 37/41
And what does ClearlySo actually do?
![Page 38: Rod Schwartz. Social Impact Investment](https://reader031.fdocuments.us/reader031/viewer/2022021320/577cc3711a28aba711960a6c/html5/thumbnails/38.jpg)
8/10/2019 Rod Schwartz. Social Impact Investment
http://slidepdf.com/reader/full/rod-schwartz-social-impact-investment 38/41
Entrepreneurs
![Page 39: Rod Schwartz. Social Impact Investment](https://reader031.fdocuments.us/reader031/viewer/2022021320/577cc3711a28aba711960a6c/html5/thumbnails/39.jpg)
8/10/2019 Rod Schwartz. Social Impact Investment
http://slidepdf.com/reader/full/rod-schwartz-social-impact-investment 39/41
Entrepreneurs Investors
![Page 40: Rod Schwartz. Social Impact Investment](https://reader031.fdocuments.us/reader031/viewer/2022021320/577cc3711a28aba711960a6c/html5/thumbnails/40.jpg)
8/10/2019 Rod Schwartz. Social Impact Investment
http://slidepdf.com/reader/full/rod-schwartz-social-impact-investment 40/41
Entrepreneurs Investors
![Page 41: Rod Schwartz. Social Impact Investment](https://reader031.fdocuments.us/reader031/viewer/2022021320/577cc3711a28aba711960a6c/html5/thumbnails/41.jpg)
8/10/2019 Rod Schwartz. Social Impact Investment
http://slidepdf.com/reader/full/rod-schwartz-social-impact-investment 41/41
Thank you
Rodney Schwartz
CEO, ClearlySo
Email: [email protected]
Twitter: @rodneyschwartz
Skype: rodneyschwartz
Website and blog: www.clearlyso.comTelephone: +44(0)20 7490 9524