Thursday, June 13, 2013

Goldman closes 2nd Social Impact Bond with Much Lower Credit Enhancement

As details of the transaction emerge, it appears that J.B Pritzker has taken a first-loss subordinated position of 34% which is much lower than the 75% credit enhancement which Bloomberg Philanthropies provided in the NYC Rikers Island transaction.

http://dealbook.nytimes.com/2013/06/12/goldman-to-invest-in-utah-preschool-program/?smid=pl-share

Tuesday, June 4, 2013

How Can We Align Who We Are with What We Do?

David Brooks describes a phenomenon I see in my students and colleagues as we all try to reconcile the sometimes conflicting desire to make a living and make the world a better place.  Can we consume our way to a sustainable and just world?  Can we do well and good? This complexity only seems to increase as the world gets smaller.  

http://www.nytimes.com/2013/06/04/opinion/brooks-the-way-to-produce-a-person.html?smid=pl-share

Monday, May 13, 2013

Learning from Odysseus: Can stuffing our ears help us make better decisions?


"When Odysseus wanted to sail around the island of the Sirens, he stuffed his fellow sailors’ ears with wax and tied himself to the mast.  In doing so, he influenced his future decision by wise precaution – and became the first to listen to the enchanting song of the Sirens without steering his ship into the cliffs." The University of Heidelberg's Centre for Social Investment has a new report on how choice architectures may improve decision-making. 


https://www.csi.uni-heidelberg.de/report/pdf/CSI_report_14__2013-05_english.pdf

Tuesday, May 7, 2013

Unburnable Carbon

If governments are serious about climate change, a portion of oil and gas reserves of major energy companies would not be usable.  Carbon Tracker has done an interesting analysis of this issue.
http://www.economist.com/news/business/21577097-either-governments-are-not-serious-about-climate-change-or-fossil-fuel-firms-are

Monday, April 22, 2013

First the Giving Pledge and now the Investing Pledge

Which Leading Investors are Seeking Profit and 100% Impact by 2020?:

If Bill Gates and Warren Buffett are willing to eventually give away all of the wealth through philanthropy, just image the positive impact they could create if they agreed to make all of their investments reflect their values and philanthropic goals.

Future of Impact Investing from Sir Ronald Cohen

Is impact investing the Next Big Thing?  I hope so as we work through how to move capital into this strategy/asset class/sector.  Sir Cohen sees the foundation community's endowments as critical to the shift.

Future of Impact Investing

Thursday, April 18, 2013

Gabrielle Giffords' Powerful Message to our Shameful U.S. Senate

I think Gabrielle Giffords' op-ed piece on the shameful behavior of our U.S. Senate is the most powerful message I have heard about the need to control gun violence in our country. I hope you read it.

http://www.nytimes.com/2013/04/18/opinion/a-senate-in-the-gun-lobbys-grip.html?smid=pl-share