Good Jobs | April 17, 2023

Two Sigma Impact raises $677 million to back ‘human capital-centric’ businesses

Roodgally Senatus
ImpactAlpha Editor

Roodgally Senatus

ImpactAlpha, April 17 — Two Sigma Impact, the impact investing arm of the $58 billion hedge fund Two Sigma, has raised $677 million to invest in creating quality jobs in healthcare, education and training and other businesses.

Two Sigma Impact has invested roughly $370 million in six companies. Its portfolio includes opioid treatment provider Community Medical Services, ecommerce platform Wholesale Supplies Plus and Penn Foster, which offers low-cost degrees and certificates in high-demand fields like healthcare and early-childhood education.

Warren Valdmanis joined Two Sigma from Bain Capital in 2019 to launch Two Sigma Impact from the hedge fund’s balance sheet. The goal: finding out and proving the correlation between good jobs and business value. The fund received commitments from pension funds, endowments, foundations and family offices as well as its own executives and employees.

Benchmarking good jobs

The firm’s Good Jobs Score Assessment tool includes a dozen questions for portfolio companies to assess job quality from workers’ points of view. Valdmanis told ImpactAlpha the tool is built on research that shows workers define a job as “good” across four pillars: fair treatment, career growth opportunities, good leadership and purpose. “The Good Job Score has the potential to be the core voice-of-worker metric for measuring and benchmarking job quality,” Valdmanis said.

For initial benchmark data, the firm administered the assessment tool with over 5,800 workers at more than 60 companies.