Managers of venture capital trusts are increasingly realising that allocating cash to socially responsible investments can boost investor outcomes, according to several industry players.
Patrick Reeve, managing partner at investment manager Albion Ventures, said there is evidence to suggest the growing number of investee companies within the £3.5bn VCT sector are now at the forefront of developments across a number of industries. Over recent years, VCTs have become increasingly active in environmental, educational and healthcare sectors where the dynamics driving change have been huge, particularly with climate change and the increased health demands of an aging population.
Mr Reeve said: “Our job, as venture capitalists, is see where the world is changing, and then to work out whether that change will result in the creation of value.”
For value to be lasting rather than temporary, he said these types of investment need to enhance the way that we live in a socially positive manner.
