Mission Driven Investments
Our mission requires every available tool. The W.K. Kellogg Foundation maintains a mission-aligned investment program that explores untapped markets to drive equitable access to opportunity and close the racial wealth gap. We’ve committed more than $340 million to impact investments that serve as models for achieving strong financial performance and measurable social impact.
Why This Work Matters
Our mission driven investments (MDI) disrupt the status quo and drive capital to underrepresented people and overlooked markets.
The foundation aims to achieve transformational systemic change in the capital markets in two ways:
- Driving racial equity by investing in people, products, services and communities, uncovering undervalued opportunities that generate promising impact and strong returns.
- Rethinking traditional assumptions about risk, while reshaping the capital market system to dismantle historical biases and barriers. As we invest in managers and organizations creating innovative approaches to equitable access to capital, we also provide communications, technical assistance, networking and other supports to help grow their investments.
What We Support
Context matters. A comprehensive approach is essential to realizing great returns while also managing in a market that often limits opportunities for underrepresented or undercapitalized general partners or entrepreneurs.
Established in 2007, WKKF’s Mission Driven Investment program seeks to reorient investor practices and behaviors to influence traditional capital markets. As one of the first and largest programs of its kind, the WKKF MDI program provides a capital continuum for opportunities aligned with WKKF’s goals. There are two types of investments that provide the greatest impact: program-related investments (PRIs) and mission-related investments (MRIs).
Program-related investments
PRIs are investments that are made primarily to achieve a program objective, rather than a significant financial return. PRIs, on average, generate return of capital and provide the flexibility often needed to catalyze capital into high impact. To date, we have committed more than $100M to PRIs.
Mission-related investments
MRIs are market-rate investments that support the foundation’s mission by generating a positive social or environmental impact, while generating reasonably competitive rates of financial return. We have grown our MRI portfolio to $240M from the $100M originally carved out from WKKF’s endowment. We designed our MRI portfolio to help scale and institutionalize opportunities for the traditional markets.
Predominately a private-markets strategy, WKKF only invests in enterprises and fund managers that directly advance our mission.
Investment Criteria
Demonstrated application of equitable approaches and influence that are most appropriate for the stage and scope of the potential investees’ strategy.
A clear strategy, pipeline and execution plan for attaining returns equivalent to the level of risk.
Flexibility across many sectors with an equity focus or the appetite to develop one.
Diversified portfolio across asset classes and stages in the private markets, including venture and private equity, credit, real estate and infrastructure.
Primarily investing through funds and fund of funds with some targeted direct company and project investments.