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.
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.
Higher education establishments work together and use their endowments to benefit society and the environment.
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.
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.
Fund providing debt and equity to growth-stage social enterprises and charities.
Social and Sustainable Capital created a property fund that appeals to both charities and investors.