Interested in hearing from those who have worked in the impact investing space, particularly earlier stage - looking for true impact investors, not arms of big firms that invest in vegan restaurants and count that (hear Bain Double Impact and KKR Global Impact are like this).
Looking to move to one of these firms from MBB.
1- Thoughts on the future prospects of the space, benefits of moving into the industry vs. traditional investors? What do exits typically look like?
2- Is the day to day work of an associate mostly sourcing, or is it a better mix of sourcing, research, and portfolio ops?
3- Any thoughts on specific firms (Acumen, Dalberg Capital, Omidyar Fund, TPG Rise, Two Sigma Impact)
4- What does the recruiting cycle/process look like, given its more decentralized and less formalized than big PE firms? Propensity to hire consultants / priority skills?
5- Any thoughts or tips in general
Thanks in advance!!
I, and @handlebars, and @making gravy have written about this extensively, including answers to almost all of those questions. It's worth reading those and coming back with more questions. That's not a wag-my-finger for not seeing those yet, I just mean in earnest, FYI that those are there, and I think you'll learn a lot reading those and then have some further questions. I worked in impact investing before selling my soul to work in PE (terrible choice).
Some things in your post that haven't been answered on the forum before:
* Two Sigma impact poached BCDI partners so it's just as much of a joke as Double Impact (which is, trust me, the ultimate joke - Norm MacDonald levels of funny - when it comes to actual impact)
* Day to day work depends on your strategy. Someplace like TPG Rise will be all execution. It is a growth oriented middle market impact fund that will selectively dabble in venture-growth or more mature businesses. I know this from friends who work there. The old impact investor I worked for was a mix of sourcing and execution but that was a more venture-y strategy. So in short I'd say it depends more on strategy than it does on the fact that it's impact.
* Recruiting again depends. 2S recruited on LinkedIn recently, Omidyar just recruited on LinkedIn, I recruited for a role from a recruiter called Goldsmith (super unique and interesting role but don't know much about these recruiters otherwise). TPG uses Gold Coast (I think), my role I sourced myself (got to know the team for a while and then asked them if they needed an Associate). Omidyar, you're barking up the wrong tree if you're not a woman / POC (this thread is not for discussing the merits of this hiring strategy - just an FYI)
* Dalberg Capital is advisory not investing I think. Acumen is more oriented towards impact than true market returns like BCDI. They're also fairly decentralized (e.g., I knew one of their Africa teams which effectively operated like a standalone fund).
Thank you, this is incredibly helpful!! I took a look through the comments you mentioned - they were also really useful. I had a few follow up questions based on this:
- I saw the post about types of impact investors - but I'm wondering if there are any specific firms that weren't on my initial list you think are interesting/worth taking a look at? If helpful to get more specific, I'd ideally like to minimize the comp and prestige sacrifice from MBB, don't mind long hours, but want a firm that's actually doing real impact investing work. Also hoping for a place where the associate role is pretty meaty - not just sourcing/cold calls. I've heard of these places through word of mouth, but adding any to my list would be really helpful.
- Given the ad hoc nature of recruiting I'm a bit worried I just missed the boat on some of these. What would you say is the best strategy for getting into the pipeline? Reaching out to distant connections who currently work at the firms I'm interested in? Do they typically fill seats immediately, or is there room to recruit now for a position that starts later down the line?
- Interested to hear more about your move from impact investing to PE - specifically, what motivated it and where you've seen colleagues go afterward given the tight funnel from Associate -> VP. I'd imagine many don't want to move into traditional finance roles due to their interest in social impact, but that's where the skills are most transferrable, right?
- Just personally curious re: the comment on Omidyar - their team cant be almost all women/POC, so surely they hire some white men? Do you just mean they're aggressive about 50/50 and because women are less represented in the field, its much harder to get in as a man? (I'm a female POC btw)
Blanditiis quidem quidem ea ipsum nobis. Illum voluptate minus sapiente eius. Voluptatem eius nihil maiores ut autem officia animi. Corporis quibusdam quo quia aut magni omnis.
See All Comments - 100% Free
WSO depends on everyone being able to pitch in when they know something. Unlock with your email and get bonus: 6 financial modeling lessons free ($199 value)
or Unlock with your social account...