Ed. Note: This post is part of the Commerce in the Community
series highlighting the work of community leaders and organizations that are
strengthening the middle class and providing ladders of opportunity for all
Below is an interview with Shawn Lesser and Michael Whelchel, Co-founders and Partners at Watershed Capital Group. Prior to starting Watershed, Shawn sold institutional equities to European banks and Michael co-managed two private equity funds in the U.S.
Tell us about Watershed Capital. What is your mission and main focus?
Watershed Capital Group (www.watershedcapital.com) is a boutique investment bank focused on the area of impact investments. Our mission is to scale impact investing with a specific emphasis on helping companies and funds raise capital and execute mergers and acquisitions. Over the past seven years, we've worked with over 20 sustainable companies and over 60 private equity funds.
Question 2: How
is Watershed Capital Group working with the Department of Commerce to expand
In collaboration with the U.S. Department of Commerce around the Obama Administration's impact initiative, last October we organized the first impact and sustainable trade mission to Europe. Specifically, we brought together 10 US-based impact funds and introduced them to close to 90 European investors in London, Zurich and Amsterdam. The trade mission included high-level conversations about the impact investing space and was capped with a policy roundtable in London which brought together stakeholders both from the US and the UK.
Following up on the success of the first trade mission, last month we organized
the second impact and sustainable trade mission to Nordic region with
delegations meetings in Oslo, Copenhagen, Stockholm and Helsinki. This
October we will be returning to Europe the week of October 20th for the
third impact and sustainable trade mission with delegation meetings in
London, Zurich and Amsterdam.
Question 3: Watershed is noted as a Certified B Corporation. What does that mean, and how did you attain that certification?
We were one of the founding B Corporations, called “B Corps,” which are companies certified by the B Lab to meet rigorous standards of social and environmental performance, accountability and transparency. We support B Lab's view that to scale impact investing there must be a way to measure the impact. There is a difference between good marketing and good companies and there needs to be a way for investors and consumer to easily tell difference. We went through an initial certification and have to go through a recertification every couple of years.
Question 4: In
what ways does Watershed utilize impact investing as an investment strategy to
promote sustainable economic development?
One of our key strategies to mainstream impact investing is to make sure investors are exposed to high quality investment opportunities that generate a market return and have impact. We call this "SmarterMoney+"; that is, maximize return and maximize impact. A myth exists in the investment community that to do good one must be willing to accept a below-market return. This misconception is a hurdle to mainstream impact investing. We challenge this myth through a number of our activities, including:
Five Fund Forum
Fund Forum is an investment forum showcasing five leading sustainable private
equity fund managers. The roadshow travels to New York, Chicago and San
Francisco where the five fund managers meet close to 100 mission-aligned investors
over a three-day period. We have organized the Five Fund Forum now 14 times and
it has become a well-established, well-recognized event in the sector.
Impact Capitalism Summit
April of this year, we organized a national conference that brought together
250 family offices, foundations and their wealth advisors. The conference was
the first of its kind to take a portfolio approach toward impact investing
by showing investors how they could maximize return and impact across various
asset classes. The group represented one of the largest amounts of investable
assets earmarked for impact investing. As part of the conference, we put
together a primer book highlighting recent research around mainstreaming
impact investing. In addition, the conference included a leaders summit where
groups such as the World Economic Forum, JP Morgan, Morgan Stanley, Rockefeller
& Co., Deutsche Bank, Credit Suisse and others came together to
discuss joint initiatives to further the sector.
In addition to events we organize, we work individually with companies and funds to help them raise capital. For example, we recently worked with the fastest growing food/beverage company in the Inc. 5000 rankings. It is a sustainable food company that is providing a scalable model that provides a sustainable alternative to factory-farmed food.
Question 5: If
people want to learn more about Watershed Capital, what should they do?
More information on Watershed is available on our website at https://www.watershedcapital.com. People can also email me, Shawn Lesser, at shawn[at]watershedcapital[dot]com or Michael Whelchel at michael[at]watershedcapital[dot]com.