The Builders Fund
Investor
Prepared By: Amelia Ahl
Last Updated: April 2024
Dashboard
Investment Type(s) or Asset Class: Private Equity
Asset Sub-Type or Stage(s) Served: Minority growth equity and small-cap buyouts
Geography Where We Invest: North America
Sector: Built Environment, Electricity, Food and Agriculture.
Builders Fund investments fall into themes where big social and environmental problems are disrupting the status quo: Sustainable Systems and Human Elevation. Our investments align with the following sustainable development goals that pertain to climate and environment: affordable and clean energy; sustainable cities and communities; responsible consumption and production; climate action; and life on land. We also track and classify according to many more social and governance themes, which we discuss in the impact section of our profile.
Sub-Sector: Climate Solutions, Regenerative Food Systems, Equity & Social Justice, Health & Wellness
Description of Investment Firm: We seek to provide market or above market rate returns and attempt to ‘do no harm’ to the climate through our investments and to provide market or above market rate returns and specifically invest in climate.
Impact Assessment Capacity: 1 staff member is dedicated to impact assessment part time: Director of Impact
Total Assets Under Management: $150 million USD
Percent of Assets Assessed: 100%
Methodology Alignment: Planned and Realized Impact
Time Frame of Assessment: 5-7 year time frame for planned impact.
In assessing realized impact, assessment occurs regularly throughout the holding period, as Builders Fund believes that meaningful impact and financial impact are collinear. We have a 14-year time horizon from fund inception, which supports more exit flexibility than is typical in private equity. We believe that our fund horizon is approximately 40% longer than a typical private equity fund. As such, while most of our peers seek 3-5-year hold times focused on quick value creation and exit, we can make ongoing determinations of what is best for both value creation and the long-term health of the company.
Alignment with Frame’s Values and Principles: Partial alignment
Reporting Realized Impact: Yes
Carried Interest Tied to Impact: No