San Francisco Foundation's $50M Commitment to Racial Equity & Economic Inclusion
The San Francisco Foundation has announced a $50 million investment from its endowment in a new mission-aligned investments pool that aims to generate positive social and financial returns, representing 6.3% of the foundation’s $800 million endowment.
“The scope and complexity of the issues that we are trying to address in the Bay Area require us to use all of the tools in our tool belt,” noted foundation CEO Fred Blackwell. “We see investing in a values-aligned manner as part of how we achieve our overall mission and we don’t think we have to sacrifice returns.”
The new pool is comprised of a diversified portfolio of managers using a variety of impact investment and socially responsible strategies, including social screens and Environmental, Social and Governance (ESG) considerations. The foundation has and will continue to seek out investment firms owned by women and people of color—two groups that have historically faced barriers to accessing capital. Initially, the pool will invest in public equities and public debt. Over time, illiquid investments, such as private equity, will be added to provide targeted social impact. The targeted risk-adjusted return for the pool is 7% to 8%.
The foundation has and will continue to seek out investment firms owned by women and people of color—two groups that have historically faced barriers to accessing capital. The pool will avoid investments in predatory lenders, private prisons, tobacco companies, retailers that sell assault weapons to the public, and fossil fuel companies. Initially, the pool will invest in public equities and public debt. Over time, illiquid investments, such as private equity, will be added to provide targeted social impact. The targeted risk-adjusted return for the pool is 7% to 8%.
The foundation aims to continue growing the pool, which is also available to donors with donor advised funds at the foundation.
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