As an owner of capital who wants to use it to improve the world, my professional life has been divided into two parts. On the one hand, I seek to smartly grow that capital through investments. On the other hand, I seek to use capital for the public benefit through charitable and other giving.
A New Way to Scale Social Enterprise
A new type of security, called “mission equity,” caps investor returns so the company’s financial success can help fuel its mission.
April 15, 2021
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Summary.
Athletes Unlimited, a Delaware registered for-benefit corporation co-founded by hedge fund investor Jonathan Soros, has created a new form of equity that requires financial investors and the company to share financial returns on pre-agreed terms with the company on the basis that the profits shared are directed to advancing the corporation’s mission to develop athletes as civic leaders and role models. Called “mission equity,” this new security is a form of capped equity in which the owner of a stock, whose price reflects the full value of the enterprise, agrees at purchase to a maximum annual rate of return with any surplus value taken by the company for investment in the company’s stated mission.