Tuesday, November 14, 2006

Securitizing Social Investments

We’ve recently seen huge investments in microfinance (yes, that is somewhat oxymoronic).

We’ve also the creation of securities to back Microfinance institutions (BlueOrchard and Accion International, Omidyar Network) that have facilitated some of that growth. Now Good Capital is trying to raise a $30 million investment fund to invest in companies that do well and do good, such as a new mountain resort staffed by young adults from inner cities. Jed Emerson helped twist the normal equity equation so that investors make below-market financial returns and also get payouts when the investment meets pre-set benchmarks. (Fast Company November 2006)

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