Type: Aligned Investments
Topic: Clean Transportation, Energy Efficiency, Renewable Energy, Technology
Status: Current
Generation Investment Management views sustainability as an organizing imperative of the new global economy. And since our initial investment it’s been the best performing equity fund in the McKnight endowment.
Investment
$25 million originated in 2014
$50 million added in 2017
$50 million added in 2018
Rationale
Generation explores the economic opportunities arising from a planet under pressure, capitalizing on trends such as the growth of cities, water scarcity, and the imperative to stop climate change. It identifies well managed, well priced companies that will thrive in the long term. This was our first “impact” manager to graduate to a full allocation in the endowment.
Benchmark
MSCI World
Returns
Financial Returns: Strong risk-adjusted returns, portfolio of $125 million as of Q2: 2018
Lessons Learned
The impact investing program can be a stage for auditioning new fund managers. McKnight “graduated” Generation to our endowment by tripling our investment.
Generation convened a fascinating dialogue with Twin Cities investors about the future of sustainable mobility. Our grantmaking staff joined investors and got a fresh perspective on business opportunities that will occur as electric and self driving vehicles grow market share.
Photo Credits: (Top) Courtesy of Generation
Disclaimer of Endorsement: The McKnight Foundation does not endorse or recommend any commercial products, processes, or service providers.
Last updated 3/2020