‘We’re the patient capital of the non-profit sector’

Q: How does private equity link with young people’s chances of success?

AR: I think the first connection is simply that private equity executives are people, too, and they can connect with these challenges on a human level.
Secondly, the private equity industry is a huge employer, and understands improving the prospects of young people as an economic issue, as well as a social and moral one.
Thirdly, [Impetus-PEF’s] model and way of thinking is similar to the private equity or venture capital approach of identifying promising businesses to back.

Q: How does Impetus-PEF operate, and why is this approach effective?

AR: We look for high-potential charities working with young people, and back them long term with funding and support. We help to test the charities’ strategies and make sure they’re working and achieving their aims.

In terms of support, we tap the expertise of private equity firms to provide mentoring for young people, or professional advice on strategy and system and operations for our partner charities.

We’ve supported our partners with over £100 million ($133 million; €113 million) of value since we started in 2002.

I’ve worked in disadvantage for many years, as an academic at Oxford and also as an education advisor to Gordon Brown. What makes Impetus-PEF effective is that we can take a chance on great leadership teams at promising charities. We’ve got the freedom to work long term with them for five to seven years. I suppose we’re the patient capital of the non-profit sector.

Q: How can private equity firms engage with the charity?

AR: The two main ways are ‘business brains and financial brawn’ if you like. The latter helps to financially support our initiatives.

The former involves applying the expertise of a private equity firm to our stakeholders. Firms can volunteer to open their doors to young people, mentoring them, giving them interview advice and showing them how a private equity firm operates. I know Steve Schwarzman gave a presentation to some of our young people a couple of years ago.

Firms can offer advice to our partner charities and get involved in our events throughout the year. We held our annual triathlon in September this year; firms can enter a team for that.

The Future Leaders Summer Party is a new event for the young private equity executives, chaired by Robert Ramsauer of Blackstone and the annual dinner is also a great opportunity to bring the industry together and show case the impact of Impetus-PEF.

Q: Any stand-out moments from the triathlons?

AR: This year was the fourth triathlon we’ve held at Eton Dorney – it’s a fantastic venue. We always get a complete range of athletes – from the super-fit with their professional bikes to the children’s scoot-a-thon event. I really enjoy the mix.

This year, some of the children had their parents’ competitive edge on display. I thought we’d have a scooter pile-up at one point! Seeing the athletes who’ve been drafted [into the event] last minute jump into the lake is always a funny moment.

Marc Boughton from CVC chairs the committee, and they always have a well-drilled team. They win at least one race every year.

If you’re a private equity firm and this is the first time that you’ve heard of Impetus-PEF, get in touch – we’d be glad to hear from you.