Swiss wealth manager UBS has invested $325m in a private equity impact investment vehicle known as Rise Fund, becoming the largest backer of the fund.
The move forms part of the bank’s five-year strategy to raise $5bn for impact investments related to UN Sustainable Development Goals (SDGs) and aims to “mobilize private wealth for public good”. The latest investment is the biggest step ever made by the bank in fulfilling this commitment.
UBS group CEO Sergio Ermotti said: “UBS is proud to have raised the largest investment in The Rise Fund. Our partnership represents a significant milestone in mobilizing private wealth for public good. We hope it will encourage our clients and others to support similar ventures and help make the world a more sustainable place.”
The $2bn fund aims to achieve “measurable, positive social and environmental outcomes alongside competitive financial returns”, UBS said. It has been co-founded by TPG Growth founder Bill McGlashan, singer Bono, and film producer Jeff Skoll, in partnership with The Bridgespan Group and the Founders Board.
The fund will invest in seven sectors namely education, energy, food and agriculture, financial services, growth infrastructure, healthcare, and technology, media and telecommunications, mainly targeting growing firms in developed and developing markets.
UBS Wealth Management global CIO Mark Haefele said: “Our private clients care deeply about making an impact on society as well as earning a compelling return. Impact investing offers them the opportunity to do both, and as such the industry is likely to grow significantly over the longer term.”
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