Private
equity firm Bain Capital has recruited former Massachusetts Governor Deval
Patrick to run “social impact” investments.
Joining the firm as managing director today, Patrick will focus on “double bottom line” investments that aim to deliver financial value as well as “significant, measurable social impact,” the firm said.
Specifically, these projects would target quality of life improvements or economic opportunity creation for areas in need of investment capital. According to the Boston-based firm, these initiatives would expand across asset classes, including private equity, venture, mezzanine, public markets, and real estate.
“I am confident that we can find compelling investments that deliver both attractive financial returns and positive social outcomes,” the 58-year-old former Democratic governor said in a statement.
Bain’s socially oriented investment business would be mainly focused in the US—though not limited by geography—and in opportunities in education, health, energy, environment, and neighborhood development.
COO Michael Ward said Patrick’s experiences in law, business, and public service and “unique insights into what creates real impact” made him an ideal choice in launching the business.
“As governor, Patrick was a pioneer in the use of social impact bonds and other initiatives to attract capital to address social and economic challenges,” the firm said.
Under Patrick’s governorship, Massachusetts initiated health care reform, increased funding to education, and joined an enterprise to reduce greenhouse gas emissions.
A recent study conducted by the London Business School and manager Adveq showed institutional investors are increasingly pushing private equity firms to integrate environmental, social, and governance (ESG) polices.
Nearly 85% of surveyed private equity firms said they felt pressure from investors to place ESG policies at the core of investments as a “value creator.”
However, despite the investor interest, the research revealed managers are still finding challenges in “collating ESG data,” necessary for proper implementation.
Prior to his two-term governorship, Patrick served as the US assistant attorney general for the civil rights division appointed by President Bill Clinton. He also had a career in law, overseeing race discrimination settlements at private firms and as general counsel at oil giant Texaco and the Coca-Cola Company.
He received a bachelor’s degree from Harvard College and a Juris Doctor from Harvard Law School.
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