Impact investment portfolio

We invest part of our endowment in bold ideas that seek both, financial gains and impact on health.

Two women talking at health conference

Sectors for our impact investments

Our impact investments fall into two broad categories. Our ‘impact-managed’ investments support established funds to increase the depth of their impact. While ‘catalytic’ investments use our capital to help newer funds or models get off the ground.

In our impact investment portfolio, we actively look for opportunities across nine priority sectors. On this page are some examples of our growing impact investment portfolio.

 

Our impact investments to date

Supporting life sciences start-ups

  • SV7 Impact Medicine Fund, $3 million investment
  • Medicixi II, €3 million investment

We back two funds dedicated to investing in start-ups in the life sciences sector. SV7 Impact Medicine Fund is a biotech-focused venture capital fund of SV Health Investors, which invests in companies exploring new drug discoveries and development. Most of their investments have been made into UK start-ups looking to deliver life-changing therapies by targeting precision medicine drugs for unmet clinical need. 60% of their investment will be targeted into companies focused on oncology.

We also invested in European-focused life sciences venture capital fund, Medicixi III, which invests in biopharma companies from discovery to late-stage clinical assets. The fund supports projects it believes can deliver licensed drugs which will have a significant benefit to patients with cancer or cardiovascular diseases.

Backing the health technology of the future

  • Eka Ventures, £2.5 million investment

Eka Ventures invests in consumer technology start-ups in the UK, focusing on companies working to contribute to an inclusive, healthy and sustainable society. We back Eka’s strategy to invest in solutions that:

  • Empower customers and patients to make better health choices, for example through early diagnosis tools,
  • Offer consumers access to better products and services relating to health, for example around nutrition and financial health,
  • Reduce environmental damage by focusing on tech brands that create consumer models that use less resource, reduce waste and lower emissions and on supply chain tech that enables brands to change the environmental footprint of their existing activities.

Driving outcomes-based practices

  • Bridges Social Outcomes Fund II, £5 million investment

Bridges Fund Management is a specialist private markets manager focused on making sustainable and impact investments that generate both attractive risk-adjusted financial returns and better societal outcomes within four themes: healthier lives, future skills, sustainable planet and stronger communities.

We invested in its Bridges Social Outcomes Fund II. This provides working capital and ongoing support to organisations delivering projects that help  to prevent homelessness, and improve health, wellbeing and employment outcomes for vulnerable young people and adults.

Social outcomes contracts are increasingly used by Government to commission vital social services from mission-driven delivery partners. Instead of the traditional ‘fee for service’ approach, these contracts are structured so that the commissioner pays for the achievement of agreed performance milestones, not the delivery of a specific service. This change in focus allows for a more collaborative approach to service design, greater flexibility in service delivery, and clearer accountability for improving people’s lives.

Since the team started investing in outcomes contracts in 2011, Bridges has supported over 50 of these projects, working with over 100 delivery partners. Their projects have helped to improve the lives of more than 28,000 people around the UK, while also enabling Government to achieve better value for public money.

Boosting innovation in diagnostics and prevention

  • Baillie Gifford Worldwide Healthcare Innovation Fund, £3 million investment

We invested capital in the Baillie Gifford Worldwide Healthcare Innovation Fund, which invests globally in healthcare companies taking an innovative approach to diagnostics, treatment and prevention of diseases. The Fund currently holds 35 listed companies all with potential to bring substantial improvements to human health and healthcare systems and deliver attractive investment returns over the long term.

More effective health and social care

  • Apposite Healthcare Fund II, £6 million investment

Our first impact investment was in the Apposite Healthcare Fund II which invests in UK and European healthcare businesses that are developing healthcare and social care services, digital health solutions and medical products and pharmaceuticals. The fund is currently invested in seven companies that deliver high quality, efficient and cost-effective care solutions.

Anita Bhatia

Our impact investment team

Investment Director Anita Bhatia leads our portfolio of impact investments. Meet Anita and the rest of our Endowment team.