Small logo Subscribe to leading news on impact investing. Learn More
The Brief Originals Dealflow Signals The Impact Alpha Impact Voices Podcasts Agents of Impact Open
What's Next Capital on the Frontier Measure Better Investing in Racial Equity Beyond Trade-offs Impact en las Americas New Revivalists
Local and Inclusive Climate Finance Catalytic Capital Frontier Finance Best Practices Geographies
Slack Conference Calls Events Contribute
The Archive ImpactSpace The Accelerator Selection Tool Network Map
About Us FAQ Calendar Pricing and Payment Policy Privacy Policy Terms of Service Agreement Contact Us
Locavesting Entrepreneurship Gender Smart Return on Inclusion Good Jobs Creative economy Opportunity Zones Investing in place Housing New Schooled Well Being People on the Move Faith and investing Inclusive Fintech
Clean Energy Farmer Finance Soil Wealth Conservation Finance Financing Fish
Innovative Finance
Personal Finance Impact Management
Africa Asia Europe Latin America Middle East Oceania/Australia China Canada India United Kingdom United States
Subscribe Log In

HCAP Partners closes $150 million fund with a “good jobs” thesis

ImpactAlpha, July 31 – The San Diego-based private equity firm has carved out a niche, investing in lower middle-market companies and working with them to improve the quality of their jobs. The thesis: Better workplace practices attract and engage better employees, which increases enterprise value.

The firm has applied its “gainful jobs approach” to more than 40 companies across three funds with $300 million in assets. HCAP’s fourth fund, which closed its at $150 million, attracted limited partners including the Ford Foundation (as part of its $1 billion endowment carveout for mission-related investments), family offices and financial institutions.

Founded in 2000 as Huntington Capital, HCAP makes growth-stage mezzanine debt and equity investments in technology, healthcare, services, and manufacturing in the western U.S. 

Good jobs

‘Good jobs’ is emerging as a compelling impact investment thesis (see, “Impact investors have a quality jobs agenda). “The more jobs and high-quality jobs, the better,” Ford Foundation’s Roy Swan told ImpactAlpha in an earlier podcast, arguing that superior companies engage employees in a superior way with superior human capital investment.

Lack of such engagement costs American companies more than $500 billion a year in lost productivity, according to Gallup, which has attracted private equity companies targeting job quality.

HCAP’s approach keys on five attributes of a “gainful” job: Opportunities for advancement, sustainable livelihoods, broad-based participation, paid sick days and wellness initiatives. HCAP’s portfolio companies employ 9,00 people; half of them are women and more than 60% are people of color.

You might also like...