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In recent years, managers of university endowments have come under increased scrutiny about how their money is invested. There’s been a significant rise in fossil fuel divestment campaigns, calls to integrate environmental, social and governance (ESG) into endowment investment decision making, and a growing impetus on making investment delivering positive social impact.
University finance directors are faced with the challenge of ensuring their financial assets are invested to meet their current and long-term costs as well as ensuring that they are in alignment with the universities mission and values. They also have to respond to the concerns of stakeholders and students in their investment practices.
Get involved
Impact investments can help managers of university endowments better align the financial asset of the university with its long-term institutional objectives. Many impact investments offer positive risk-adjusted financial returns as lower correlation to listed public market investments.
Impact investments can also help managers respond to student and other stakeholders’ calls for more responsible investment practices.
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The University of Edinburgh
The University of Edinburgh has strategically allocated its endowment to create social impact.
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University of Northampton
One of the youngest universities in the UK, leading the way in delivering social impact through investment.
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At Big Society Capital, we believe that universities are uniquely positioned to help meet some of the growing needs of the social impact investment sector in the UK.
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How an idea becomes an investment
We always seek to understand people’s needs first. This means there isn’t a typical process for creating new investments, but there are some common principles and approaches.
Relevant investments
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Social lending
Social Enterprise Investment Fund II
Fund providing debt and equity to growth-stage social enterprises and charities.
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Helping charities scale through property ownership
Social and Sustainable Capital created a property fund that appeals to both charities and investors.
Contact
To learn more about how universities can engage with impact investment, please get in touch.