IMPACTASSETS 50™

An Annual Showcase of Impact Investment Fund Managers

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An Annual Showcase of Impact Investment Fund Managers

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ImpactAssets 50: A Global Landscape of Impact Investment Fund Managers
The ImpactAssets 50 (IA 50) is the first open-source, publicly published database of experienced private debt and equity impact investment fund managers.
https://www.impactassets.org/impactassets-50

ImpactAssets 50

An Annual Showcase of Impact Investment Fund Managers

IA 50 2023 PROFILE

The Builders Fund

Total Assets Under Management: $100 – 499M
Asset Class: Private Equity
Primary UN Sustainable Development Goal: 8 – Decent Work & Economic Growth
Climate Change
Education
Health and Wellbeing

Firm Overview

Category: Private Equity - Growth Stage (Developed Markets)

The Builders Fund supports intentional growth and uncompromising impact. We build companies that generate exceptional returns by course-correcting our future. We are a leading growth-stage private equity fund with a focus on partnering with purpose-driven businesses. We have a 20 year track record across 6 predecessor funds and have been recognized as a “Best for the World” B Corporation for past 6 years. 

Firm Headquarters: United States
Years of Operation: 5 – 9 years
Total Assets Under Management:
$100 – 499M
Total Number of Investors: More than 25
% of Capital from Top 3 Investors: 25% – 49%
Investment Thesis:

Builders invests in growth-stage businesses whose business models address environmental and social challenges and where purpose can be harnessed for competitive advantage.  

Investment Overview:

With a rigorous approach to impact, we aim to advance a more sustainable and systemically responsible form of stakeholder capitalism. Our approach is focuses on 1) Authentic Partnership: we build enduring relationships with management teams, creating shared value and orienting around impact, and work as hands-on advisors and allies in scaling businesses 2) Intentional Growth: we have a long-term orientation, we create value through earnings growth and expansion, and we scale business and impact simultaneously, investing in proven, scalable business models 3) Uncompromising Impact: we support systems responsibility by considering environmental, social, governance, and impact criteria, our investments achieve mission lock as Certified B Corporations, we conduct transparent reporting, and we have a commitment to continuous learning and field building.

Company Differentiator:

Our approach to authentic partnership differentiates us. Our model is 'partnership first', amplifying purpose-driven company culture. We have 30+ “Builders” LP operating partners with experience in target industries serve as resource to portfolio companies. Our concentrated portfolio results in dedicated time and operational support from investment team. We employ a stakeholder approach to creating economic value, improving lives and promoting sustainability for both human and natural resources.

Investment Example

Acelero Learning: Direct operator and tech-enabled service provider for child care centers. Founded in 2001, Acelero is an early childhood education (ECE) platform serving low income communities, as a direct operator of Head Start (HS) centers (“Acelero Learning”) and via tech-enabled services to other HS operators, states, and municipalities (“Shine”). Our investment thesis is to partner in the next phase of growth with the leading outcomes-driven early childhood education platform focused on closing the Achievement Gap for low-income children. Growth capital to accelerate tech-enabled services business, supported by favorable, bipartisan public funding environment.  

Leadership and Team

Cumulative Leadership Experience in Impact Investing:
30 years or more
Cumulative Impact Experience of Top Three Firm Leaders:
30 years or more
Tripp Baird – Managing Partner More Info

Cofounder & Managing Partner of the Builders Fund, a growth-stage private equity platform investing at the intersection of purpose-driven companies and the opportunity created by the need to solve the significant environmental and social challenges of our time. Tripp is focused on themes of sustainable food & ag, health, climate solutions/resource efficiency, and human elevation; to help fix our broken food system, address the healthcare crisis, decarbonize the economy, use our finite resources more efficiently, and to create a more equitable, sustainable future. Tripp serves on Builders’ Investment Committee and on the Boards of Traditional Medicinals, Urban Remedy, PosiGen, MIXT, and MPOWERD.

Mike Dutton – Managing Partner More Info

Mike Dutton is a co-founder and managing partner of Builders and sits on its investment committee. He most recently served as CEO of Dolphin Capital Group, a Utah-based private equity firm investing in emerging growth businesses. Mike has participated in the startup and growth of several companies as an operator. He was the CEO of Winder Farms, building it from a small dairy delivery business to a leading online grocery delivery business with over $40M in revenues. He was also the Executive Chairman of Manduka, one of the world’s leading yoga brands. He also helped build Home Financial Network leading to its successful $220M sale to Sybase.

Katharine Hawthorne Hersh – Partner More Info

Katharine Hersh is a Partner with the Builders Fund. Previously she worked with Patamar Capital, Citibank, and Tiedemann Advisors, and began her career as a finance and contracts manager at UCSF, where she oversaw a $50 million annual portfolio and negotiated over 30 transactions with federal, corporate, and philanthropic funders in the healthcare and life sciences industry. Katharine currently serves as a Board Director with Acelero Learning and as a Board observer with MPOWERD. She holds a B.S. in physics from Stanford University and an MBA in finance with honors from the University of California Berkeley, Haas School of Business. Based in the SF Bay Area, Katharine also serves as a board member with Sharp & Fine, a contemporary dance company. She’s an active member of the Silicon Valley Bicycle Coalition, an avid hiker, reader of nonfiction, and fan of spicy food.

Financial Performance

Target Financial Returns Relative to Benchmark:
Above Market Rates
Actual Performance of Impact Products/Funds Relative to Target Financial Returns in the Past Three Years:
In line with initial target returns
Financial Reporting Frequency to Investors or Donors
Quarterly

Impact Performance

Percentage of Total Assets Under
Management that are Impact Investments:
100%
Primary Impact Outcomes:
Addressing climate change and environmental issues
Secondary Impact Outcomes:
Addressing climate change and environmental issues
Creating jobs
Increasing access to education and improving educational outcomes
Addressing racial inequities
Addressing gender inequities
Value-added Services Offered:
Access to markets
Business and legal training
Human Resources, recruiting and professional development services

Investments systematically target companies where social and/or environmental impact is integral to the product/service being created:

We target investments where the fundamental business model creates positive social and/or environmental benefit, harnessing purpose to competitive advantage, using our investment themes to guide us (Climate Solutions, Regenerative Food Systems, Equity & Social Justice, and Health & Wellness). We use the B Impact Assessment and develop our own investment thesis and pathways to determine how a business model makes impact.

Investments systematically include social and environmental sustainability practices in the due diligence process:

We have a list of criteria we examine and use to prioritize deals during diligence. We look at ESG practices and compare them across potential investments.  

Impact Tracking and Monitoring

Impact is Tracked:
Yes
Impact Verified by an Independent Third-Party:
No
Social and/or Environmental Impact is Reported to Investors and Donors:
Yes – to the public
Third Party Validations:
Member of Impact Capital Managers
Impact Frontiers Cohort Participant
Implement recommendations from Task Force on Climate Related-Financial Disclosure
Net Zero Assets Managers Initiative
Utilizes standardized impact metrics (e.g. IRIS+, GIIRS, etc.)
Participant on steering committees or leadership roles within impact industry associations
Publisher or contributor to industry white paper or other research in impact investing

Learn More

Key Contact Name: Amelia Ahl
Phone: 612-816-0707
Mailing Address:

4319 21st St., San Francisco, CA 94114 USA

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