Private Equity Shares

1. Invest
Private Equity Shares make it easy for private equity firms to ‘invest’ in the social sector in emerging markets in a way that is closely aligned with the private equity approach of building strong portfolio companies. NESsT provides a vehicle through which private equity firms can support a portfolio of high-impact social enterprises — ensuring money is well managed, well spent, and creates financially sustainable economic and social benefits for marginalized communities.

Nearly 50 private equity firms and their advisors, including accounting, banking, consulting, and law firms, are involved in Private Equity Shares and have collectively raised over US$1million in support of social enterprises in emerging markets.

NESsT works much as private equity firms do. We ‘invest’ philanthropic capital in a portfolio of social enterprises, support the portfolio with time and advice, and ultimately seek to exit our investment by ensuring the social enterprise is able to stand on its own feet financially.

2. Engage
Private Equity Shares also provides an easy and efficient way for private equity professionals to apply their skills to benefit the community. Whether in reviewing business plans, assisting NESsT with investment decisions, or mentoring a portfolio social enterprise, over 250 professionals are providing pro bono advice or assistance through the NESsT Business Advisory Network (BAN).

The NESsT booklet All in the Same Boat is an introduction to “venture philanthropy” for private equity professionals. Many philanthropists are successful business professionals, investors or entrepreneurs. In addition to their financial resources, they bring expertise, skills, and collegial networks that can be of enormous benefit to the nonprofits they support, providing a combination of financial, intellectual and social capital. These so-called “engaged philanthropists” infuse their grantmaking activities with the principles and tools of private equity investing.

3. Promote
Through Private Equity Shares, NESsT has established partnerships with leading, emerging market private equity associations across Central Europe and Latin America to increase awareness of the benefits of giving, to develop giving and volunteer opportunities for associations’ members, and to promote private equity philanthropy.

4. Celebrate
An important objective of Private Equity Shares is to promote excellence in philanthropy in the private equity industry. In 2001, NESsT established the International Venture Philanthropy Award (also known as the “NESsT Golden Egg Award”) to celebrate private equity role models in venture philanthropy. NESsT has presented the award in Central Europe since 2001 and launched a similar award for Latin America in 2009.

5. Strategize
Through Private Equity Shares, NESsT Consulting also provides consulting to private equity firms to help them design a philanthropic giving strategy that fits with their investment philosophy and strategy and with the needs and priorities of the communities in which they invest.