35 - Understanding the impact revolution with the father of impact investing

The Impact Investing Podcast

In a meeting hosted by the Rockefeller Foundation in Italy in 2007, the term impact investing was coined. Yet seven years prior to that, in 2001, Sir Ronald Cohen (just Ronald Cohen at the time) was requested by the UK Treasury to establish the Social Investment Task Force (SITF). The SITF was tasked with exploring the ways in which the UK could create wealth, spur economic growth, and improve the lives of its most vulnerable people at the same time. It was his work here where he and his colleagues developed much of their thinking on impact investing.

Only a year after establishing the SITF, Ronnie (as he prefers to be called) would become Sir Ronnie, not for his work in impact investing but for his three decades of work essentially bringing venture capital to the UK. Ronnie was only 26 years old when he co-founded Apax Partners, a private equity firm that would grow to manage $50B in assets with offices across the globe.

By 2013, then Prime Minister David Cameron asked Ronnie to lead the G8 Social Investment Task Force (G8T) in order to "catalyze a global market in social impact investment." Not long after that he was then asked by the British Government to lead an effort to expand the G8T further globally and resulted in him establishing The Global Steering Group for Impact Investment (GSG) in 2015.

During this time, Sir Ronnie also contributed to creating the world's first Social Impact Bond which aimed to reduce recidivism rates at the Peterborough Penitentiary in the UK. He and his colleague's findings on SIBs were articulated in a now-famous report "Impact Investment: The Invisible Heart of the Markets" which kicked off a movement to spread the idea of impact investing across the world.

All of that amounts to one hell of an impressive career by any standard but especially for a refugee who fled Egypt as a result of the Suez Crisis in the 1950s. At 11 yrs old, Ronnie and his parents arrived in the UK with just a single suitcase each and Ronnie clutching his precious stamp collection in his arms. Therefore, it is my great honour to welcome Sir Ronald Cohen to the podcast.

Show Notes:

• Sir Ronald Cohen, Impact: Reshaping Capitalism to Drive Real Change (Ebury Press, November 3, 2020)
• Harvard's Impact-Weighted Accounts Initiative
• Yuka mobile app (deciphers product labels and analyzes the health impact of food products & cosmetics)
• Episode 5 of this podcast where we discuss: "Following the birth of the Social Impact Bonds"

*** Enter our giveaway to win a $500 impact investing prize pack by visiting www.davidoleary.ca/giveaway ***