ESG: Citigroup Social Impact Fund Hits $150 Million
The fund has a focus on infrastructure, workforce training, and financial access.
The details around the Citigroup social impact fund emerged this week. The bank announced it funded a $150 million social impact fund.
The fund will invest in private companies that make a positive impact on society. Internally funded, the new fund will invest in companies looking to develop innovative solutions for four significant challenges the world faces today.
More on the Citigroup Social Impact Fund
Meanwhile, this will be the first fund of this type to be created by a major bank using its own capital. The challenges the fund also looks to help solve are:
- Workforce Development – Helping to train people and find a position in a new career
- Financial Capability – Helping people gain access to the financial system
- Physical and Social Infrastructure- Providing solutions that improve lives through housing, healthcare, and transportation.
The Citigroup Social Impact Fund will also look to invest in businesses run by women and minorities. The portion of the fund committed to early-stage seed funding will focus exclusively on investments women- and minority-led firms.
Citigroup CEO Michael Corbat also commented on the new fund.
“It takes companies of all sizes to address the challenges our society faces today,” said Corbat. “While Citi’s global footprint and scale allow us to use our balance sheet to play an important role, smaller, newer, ‘double bottom line’ companies play an equally important role in driving change.”
In addition, the new fund complements Citigroup’s efforts to earn a financial return while having a positive impact on society.
“The gender and ethnic gap in the startup world is very real, with reports showing a small fraction of venture capital funding being allocated to women and minority-owned startups,” said Ed Skyler, Executive Vice President, Global Public Affairs at Citi. “Our intention is to not only help these businesses scale and thrive but to also shine a light on the investment opportunities among this pool of often overlooked, high potential entrepreneurs.”
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