Private equity and venture capital firms and individuals are also actively involved in social and sustainability issues. Within the industry, there is a long-standing culture of personal giving and other kinds of support for social sector organisations. Increasingly, the industry is developing more commercial and quasi-commercial models with a mix of social and financial returns, as outlined in the spectrum of private equity involvement below.
This spectrum highlights the activity from purely commercial investment to philanthropic giving, with various forms of socially-driven investment between. The range of activity is extensive across our membership and we encourage members to map their current activities against these categories; with a view to articulating the social value the industry is creating. For an example please click here.
Fully commercial VC/PE investments
Many of our members already invest in companies that operate in the social sphere (ie health, education or environment-related opportunities) or clean technology or similar sectors where the "sustainability" agenda is prevalent.
Social mission-driven VC/PE investments
Our members involved here seek a full commercial return on their investments - for example, specialist funds operating in the social and environmental arenas, or in deprived economic areas. Bridges Ventures is one example that does both - they seek to generate a commercial return while making investments in companies located in regeneration areas and/or social sectors like education, healthcare and the environment.
Philanthropic Investments
Those of our members involved in this area give money away to charities or social enterprises with a view to achieving a social impact with no financial return. They see themselves as active investors, not passive donors. For an example please click here.
Venture philanthropy is key to this area; it represents opportunities for VC/PE houses to leverage their core skills, as well as their financial resources, to achieve a social impact.
