Issue 61, September 13, 2009
www.hksef.org
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Social Investment Funds – Coming Close to Hong Kong
In many parts of the world, social investment funds have become a major impetus supporting the
development of social entrepreneurship. Not quite in Hong Kong yet. But things are changing and
hopefully we will have some sort of funds specifically targeting at social enterprises.
In this issue, we are introducing two social investing funds which are beginning to be active in this part
of our world. One of them, SOW Asia, is based in Hong Kong and was founded by a Hong Kong
businessman. The other fund, LGT Venture Philanthropy Foundation, is based in Switzerland but has a
China manager based in Beijing. Unfortunately, both foundations are not supporting social
entrepreneurs in Hong Kong as such, but they would support
projects inside China. Let’s hear what they are offering.
SOW Asia by Scott Lawson
www.sowasia.org
Two years ago I visited Bolaven Farms in central Laos
(recently featured in the SCMP Sunday magazine, see also
Video of the Fortnight on page 4). This inadvertent
introduction to social enterprise would change the course of my
life.
I began reading Muhammad Yunus and was stunned to learn that so much conventional wisdom about
the poor and poverty is simply wrong. I became convinced that other organizations could have a similar
impact, if given appropriate financial and non-financial support.
Last summer I met Darius Yuen, the founder and president of SOW Asia. Darius, an investment banker,
had a similar vision of making philanthropy more accountable, more personal and more impactful.
Darius invited me to join the team in early 2009, along with Abbie Jung, who comes to SOW from
Doctors Without Borders.
SOW stands for self-sustainability, opportunity and well-being. These three values, along with our tag
line, “Invest in Humanity” capture the heart of our vision and strategy. Functionally, we are similar to a
venture capital (VC) fund. In fact, our emerging industry is often described as venture philanthropy.
Our bottom line is, of course, quite different from the world of venture capital. We are a non-profit
charity and our intent is to make a positive difference rather than a lot of money. But the VC principles of
high engagement, clear benchmarking and scrutiny of the operational aspects are essential.
Focus on China
The unprecedented growth and progress in China over the past 30 years has changed the world. China is
now a major player in the global community and what happens in China will impact the world economically and environmentally. Although the challenges for China are well known, some of the
emerging, creative solutions are less publicized. But a remarkable group of social entrepreneurs is
coming of age in China. Their primary motivations are the same as those that drive SOW Asia’s work -the development of self-sustaining enterprises that create opportunities for more people, protect the
environment and impact the well-being of many, not just a few.
Last month in Beijing we visited an exhibition of 150 Chinese social enterprises. Although many of these
enterprises are quite young (literally), we saw much promise and potential. SOW Asia intends to partner
with the organizations that show uncommon potential in the areas of health care, education, protection of
the environment and the fight against poverty.
We have used these months to study our context, develop investment practices and meet with potential
partners. Because of our focus on China, we have been less visible here in Hong Kong, our hometown.
But we do care very much about the amazing things that are happening here in Hong Kong. Our team
will participate in the SE Summit meeting this November and we hope to meet many of you at the event.
How significant is the social enterprise movement? It is certainly a “fad,” but is it also a trend that has the
power to reshape the world? At SOW we believe that social enterprise is not only a trend but also a
necessity and an inevitability. The nature and scope of the challenges we face call for equally novel
solutions. But at its heart, social enterprise is quite local and personal. It is the timeless story of ordinary
people doing extraordinary things to help their communities and serve their nations. They don’t even
realize their innovative work has a “name.” Most would simply say, “I saw a need which I am trying to
meet, with whatever I have.”
Perhaps you are not ready to start a social enterprise, but you can support one. For starters, why not
purchase some Bolaven Farms coffee? Buy it simply for the reason it is a world-class product. But as
you enjoy it, know that you really are making a positive difference for a Hong Kong-based social
enterprise that will impact generations of families in Laos.
LGT Venture Philanthropy Foundation by Qin Ma
www.lgt.com
The LGT Venture Philanthropy Foundation was founded in 2007 by initiative and funds of the Princely
Family of Liechtenstein, one of the largest family-owned wealth management groups in Switzerland. Its
mission is to raise the sustainable quality of life for the less advantaged people especially in the
developing world.
Applying a venture philanthropy approach, the foundation seeks to support both non-profit and
for-profit organizations active in the areas of alleviating human suffering, education, and sustainable
livelihoods by providing capital, as well as knowledge, strategic support and access to relevant contacts
and networks. The aim is to create long-lasting sustainable impact while building the structures to
enhance long-term development and self-empowerment. LGT Venture Philanthropy makes use of grants,
loans and equity investments. Any generated profit is channeled back into the fund and will be used for
additional investments.
Seeking out Future Nobel Peace Prize Winners
The LGT Venture Philanthropy team builds on rich expertise and work experience in the field of venture
philanthropy and social entrepreneurship. It identifies, selects and supports organizations which reflect a
high vision fit with LGT Venture Philanthropy’s overall philosophy and values. In short, it seeks out
talent, inspiration and passion, as it wants to support future Nobel Peace Prize winners.
LGT Venture Philanthropy is committed to applying state-of-the-art management practices, accounting
and measuring systems and investment processes to ensure that the entrusted funds can be allocated with
maximal positive impact and transparency. LGT Venture Philanthropy raises and invests funds from the
Liechtenstein Princely Family, as well as from LGT employees, LGT clients and other interested
external investors.
Three Overarching Themes
Activity in one of the following three themes will be favored by the selection team:



Relief of human suffering – The emphasis lies on alleviating human suffering in the developing
countries. Examples include organizations that seek to end child prostitution, strengthen gender
equality, provide shelter and material assistance to orphans, those who suffer from HIV/Aids, the
abandoned and the severely disabled.
Education – The emphasis lies on education, learning and life-skills development. Examples
include organizations which offer primary, secondary and tertiary education and alternative
education programs, teacher training and social empowerment programs.
Creation of sustainable livelihoods – The emphasis lies on offering opportunities for people to
create sustainable livelihoods for themselves. Examples include organizations which focus on
sustainable agriculture, alternative and renewable energy, giving loans to and making equity
investments in social enterprises as well to social entrepreneurs.
Geographic Focus Areas
LGT Venture Philanthropy seeks to support organizations that are active in the following regions:
Latin America, Africa, India, China and Southeast Asia
Application Procedure
LGT Venture Philanthropy will only consider applications that meet the specified selection criteria and
are recommended by a trusted source. Any organizations interested to apply may submit a letter of
inquiry. LGT Venture Philanthropy’s interest is to keep the application process as simple and
straightforward as possible. The letter of inquiry should not exceed three pages in total, summarizing
the most important information about the organization and its track record.
For more information, you may write to [email protected] or to Ms Qin Ma, Investment Manager China
at [email protected]
What about Hong Kong? When will we have a social investment fund?
The closest thing is Social Ventures Hong Kong, although it is not a funding
organization as such. As far as I know, Chong Chan Yau, Chris Cheung and a group
of socially conscious fund management professionals are working very hard to
design and launch a Social Investment Fund for HK social entrepreneurs. If you want
to
offer
support,
please
[email protected] .
contact
Chan
Yau
[email protected]
or
Chris
Video of the Fortnight 精選錄影片
SOW Asia in Laos
http://www.bolavenfarms.com/media.html
Quote of the Fortnight
“Wealth is not how much money
you have. Wealth is what you’ve
left when you lose all your
money.”
Roger Hamilton
“財富不是你有多少錢. 而是你失去
所有的錢時還有甚麼.”
咸美頓
Book of the Fortnight
精選書籍
How to Change the World:
Website of the Fortnight
Social Entrepreneurs and the
精選網站
Power of New Ideas
By David Bornstein
中譯本:
如何改變世界 – 社會企業家
與新思想的威力
Social Ventures Hong Kong
http://www.sv-hk.org/profile_chi.html
香港社會創投基金
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