Burlington, Vermont. Resonance announced the creation of a new MBA fellowship program to inspire students to explore the potential of impact search funds within the investment community. The Fellowship will support one first-year MBA student to develop a private placement memo for the world’s first Impact Search Fund, beginning during the summer of 2018.
Conceived, developed and tested by Resonance’s team of experts, an Impact Search Fund is a new to in the investment industry, utilizing the proven Search Fund model, but with a focus on delivering both financial and environmental or social returns.
According to Darren Miao, Resonance’s Director of Impact Investing, “Impact Search funds have the potential to unleash impact capital to clean up troubled industries like aquaculture.” The idea of an Impact Search Fund is simple, “take the proven private equity principles of traditional Search Funds, then invest in established small companies to improve their environmental and social performance. Exit with strong financial returns within 5-7 years.”
In addition, Impact Search Funds reduce key risk factors that often deter investors. When a fund invests in a single, mature company with proven cash flows and demonstrated profitability, operations and execution risks are significantly reduced.
The potential benefits are not limited to just investors. Steve Schmida, Managing Director of Resonance stated, “Because Impact Search Funds are launched by MBA students, they have tremendous potential to grow the pool of managerial talent in the impact investing space – something that is desperately needed. These Search Funds will create greater opportunities for talented professionals to apply their skills to build a better world.”
Applications for the Resonance Impact Search Fund Fellowship are due June 20. Interested first year MBA students can find the application here.
Resonance is an award-winning frontier markets solutions firm, based in Burlington, Vermont and with offices in Washington, DC and Seattle. We help our clients unlock opportunity in frontier markets by designing action-based strategies, forging strategic partnerships, and executing across sector boundaries. Since 2005, we have built over 200 partnerships and delivered solutions that enable businesses to achieve their growth objectives, NGOs to fulfill their missions, and development agencies to reach billions of individuals born into poverty.