Through ‘ownership trusts,’ investors can help employees become owners and help owners retire. Patagonia founder Yvon Chouinard’s unusual succession plan made waves with its massive commitment of the family-owned company’s future profits to a nonprofit. Even more interesting was the Chouinard family’s use of a legally-binding trust to preserve the company’s independence and social-mission. Such "perpetual purpose trusts," or simply "purpose trusts," are non-charitable legal entities that have long been used to protect inheritances and family assets. Employee-focused purpose trusts, or ownership trusts, could help address yawning wealth gaps by cutting in employees on the wealth they help create, says Zoe Schlag of Common Trust, a new financier and adviser to small business owners seeking to convert to ownership trusts.
Sponsored by J&J Impact Ventures
How shared accountability can increase the social impact of healthcare investing. Delivering real impact that improves health outcomes for underserved communities requires more than transparency. It requires innovators and investors to be explicit about their expectations and standards – and to share accountability to those expectations. Johnson & Johnson’s Sarah Mullane details the ways in which J&J Impact Ventures, a fund within the Johnson & Johnson Foundation, cultivates such shared accountability. The fund seeks impact data across five key criteria, including access by underserved communities and the contribution of both the company and the fund to outcomes that would not otherwise be achieved. The fund provides consulting to help portfolio companies evolve their impact strategies and reporting. “Together, we focus on actionable data to prove out the business model as well as the theory of change,” Mullane writes. “Particularly at early-company stages, the data we gather is critical because it can flow back into further experimentation and learning.”
Dealflow: Low-Carbon Transition
TPG seeds Rubicon Carbon’s carbon marketplace with $300 million. The private equity giant recruited former Bank of America heavyweights Tom Montag and Anne Finucane to create a market for high-quality credits that corporations can use to offset their emissions. “The growing carbon market will need new tools and financing solutions in order to reduce friction, democratize access and improve quality,” said TPG’s Jim Coulter. New York-based Rubicon Carbon will source carbon credits from TPG portfolio company Anew Climate, the product of an earlier TPG-led rollup, and fund new carbon offset projects through Rubicon Carbon Capital (see, “TPG Rise rolls up Element Markets and Bluesource to go big on carbon credits”). The credits, represented by a "Rubicon Carbon ton," are backed by a portfolio of nature-based and industrial offsets, rather than by individual projects. TPG’s Rise and Rise Climate funds committed $300 million to Rubicon’s targeted $1 billion equity raise. Bank of America, JetBlue Ventures and NGP ETP are expected to invest.
Agents of Impact: Follow the Talent
C40 seeks a senior manager for its Zero Emission Areas Program… Rockefeller Capital Management is hiring an investment client portfolio manager in New York… Gratitude Railroad is looking for a remote impact investment associate… The World Bank has an opening for an Adaptation Fund senior evaluation officer in Washington, D.C… UN Women is recruiting a remote national gender statistics consultant... The Center for Sustainable Energy has an opening for a remote director of government affairs.
Editor’s note: This article is sponsored by Johnson & Johnson Impact Ventures, which supports ImpactAlpha’s Investing in Health coverage. In partnership with J&J Impact Ventures, ImpactAlpha is exploring the …