Transform Finance Briefing: Investing in Employee Ownership

Building on the database of funds released earlier this year, for which we collected data from dozens of fund managers doing Employee Ownership deals, this briefing analyzes the economic data and impact theses to help investors navigate this exciting impact space.

With clearly demonstrated impact, a “Silver Tsunami” where over $10 trillion in assets are transitioning as baby boomers retire, and growing attention from policymakers and the business community, now is a great time for investors to join the growing Employee Ownership movement. Yet we continually hear from asset allocators and fund managers that the uniqueness of Employee Ownership – both from a financing and an impact perspective – makes for a higher barrier to entry. To facilitate more investments into EO, we’ve just completed original research and analysis on the funds operating in the space.

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In our new briefing, Transform Finance outlines various stages that investors may find themselves in exploring the space: understanding the landscape of EO funds, identifying the investment approaches of different funds, and comparing and evaluating the potential impact of funds. We provide recommendations for these stages as well as overall considerations to maximize impact and build the field. At the core of our recommendations is an analysis of 53 funds that finance EO in the United States and Canada, made across investment approaches, target financial returns, size, geographic focus and impact.