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Impact Investment Management

Overview

Our Current Efforts

The Rockefeller Foundation Impact Investment Management (IIM) is a bold new step for the Foundation’s impact and sustainable investing work. IIM is an asset management platform that aims to mobilize mainstream markets and investors, scaling up investments into promising new finance vehicles that help to close the UN Sustainable Development Goal (SDG) funding gap.

The creation of IIM gives the Foundation the capacity to aggregate and manage capital from like-minded partners to amplify impact in the Foundation’s core programmatic areas—food, health, power, jobs, and innovation—and drive the development of the impact investing field more broadly.

The first investment on the IIM platform is a $60 million investment partnership between the MacArthur and Rockefeller foundations aimed at scaling the Foundation’s Zero Gap portfolio. This partnership will utilize a broad range of investment tools to support the development and launch of new financial products and mechanisms that can mobilize large-scale private capital against the SDGs.

IIM in Action

The Foundation has closed three transactions under the Zero Gap investment partnership on the IIM platform and has a healthy pipeline of transactions in process.

  • Sixup helps bridge the financial gap preventing individuals from attending four-year colleges by identifying, underwriting and incubating undervalued students – thus creating a new asset class branded as “Future-Prime”.  By leveraging financial innovation alongside technology-enabled student support, Sixup hopes to boost a student’s education and social mobility through the entire lending lifecycle.
    • Impact: The Zero Gap investment is expected to directly support 2,500+ loans to students.
    • Investment: The Zero Gap investment partnership provided a $4 million investment alongside Goldman Sachs and other key partners to support the growth and scaling of Sixup’s business model and underlying lending platform.
    • Closed: December 2018
  • The Forest Resilience Bond (FRB) is a special-purpose vehicle that allows private investors to proactively support local forest management by providing upfront working capital to organizations like the U.S. Forest Service and local utilities. Developed by Blue Forest Conservation, the FRB helps overcome the estimated $60 billion need for forest restoration work in the United States and mitigates the dangers of overgrown forests, including wildfires and degradation of water supplies. Private investors are repaid principal and interest through reimbursable grants from state governments and cost-sharing agreements with local investment-grade utility companies.
    • Impact: First pilot project launched in 2018 in Tahoe National Forest to enhance the resilience of 15,000 acres of high-value forest.
    • Investment: The Zero Gap investment partnership provided a $1 million investment as well as a $950,000 grant from The Rockefeller Foundation to Blue Forest Conservation; other investors and key partners include the Moore Foundation, U.S. Forest Service, Yuba County Water Agency, National Forest Foundation, World Resources Institute, Calvert Impact Capital, and CSAA Insurance Group.
    • Closed: October 2018
  • LeapFrog Investments is a leading private equity asset manager focused on the financial services and healthcare sectors in emerging markets. At $700 million, LeapFrog Emerging Consumer Fund III is the largest-ever private equity fund raised by a dedicated impact fund manager. The Fund aims to deliver access to financial services and healthcare to 70 million emerging consumers in Africa and Southeast Asia.
    • Impact: The Zero Gap investment partnership’s investment is directly tied to an innovative insurance mechanism underwritten by XL Catlin (now part of AXA). The first-of-its-kind insurance product will mitigate exposure for Fund investors in a downside scenario where OPIC, one of the key investors, exercises its seniority. The innovative insurance mechanism helped catalyze OPIC’s investment in the Fund, in addition to other investors mobilized on the back of OPIC’s commitment (totaling nearly $300 million in all).
    • Investment: The Zero Gap investment partnership provided a $3 million investment alongside global insurers, pension funds, development banks, and major corporations and foundations.
    • Closed: May 2019

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