15.S08 SSIM: Social Impact Investing
Spring 2017
Instructor: Gita R Rao
TA: Limor Bordoley
Lecture: TBA (TBA)
Information:
Announcements
Generic Valuation Model
Dear Students: I have placed a generic valuation model on Stellar, with IRR, MOIC and other calcs.Best,
Prof. Rao
Announced on 16 May 2017 9:47 p.m. by Gita R Rao
Final Project Submission
Hi everyone,As a reminder, the final project is due this Thursday, 5/18, by 7am. please submit an electronic copy via email to Professor Rao, Limor, and Bob (grao@mit.edu, limorb@mit.edu, rkissing@mit.edu).
We will be selecting two groups to present in class Thursday. Each presentation will be 10 mins followed by 10 mins of Q&A. No need to prepare anything extra for the presentation--we will print copies of your memos for the class.
For additional reference I'm re-pasting below the
instructions for the final project.
(1) Private Markets: Prepare an investment committee memo and
valuation model, proposing an investment in a social enterprise.
The social enterprise should be for-profit and can be Seed through
Series C stage. The investment memo should be 5-7 pages in length,
excluding appendices. A sample template is on Stellar, but feel
free to modify some of the sections as you see fit. Be sure to
include your supporting analyses for valuation and projected
IRR/MOIC. Pitchbook will be a good resource for collecting
information on comparables and competitors in the space. Please let
Bob Kissinger know if you need access.
(2) Public Markets: construct a global portfolio of 20-25 ESG-rated public companies, based on inclusion/exclusion and security analysis. Prepare a 5-7 page investment memo (excluding appendices) articulating your investment thesis and security selection process. The portfolio should ideally include companies from the US, other developed markets and emerging markets. Bloomberg or Thomson Reuters Asset4 ESG scores may be useful as you search for companies that fit your investment thesis. Please let Prof. Rao know right away if you need help with data.
Don't hesitate to reach out if you have any additional questions.
Announced on 16 May 2017 1:15 p.m. by Limor Bordoley
Updates and Reminders for Next Week
Please see below for a few updates and reminders for next week:
· Final Project: Please note in the google sheet your team and the final project type selected. If you select type 1, please indicate the company you will be assessing. The ppt from yesterday has been posted to stellar, which includes the slide with additional details for the final project. 2.
· MSCI Research Paper: For additional reference, Professor Rao has uploaded the MSCI research paper from which the correlation tables in yesterday’s ppt were taken.
· Assignment 3: Please submit a hard copy to Bob Kissinger (E62-671) by 4pm on Monday, 5/8.
· Assignment 2: You can also pick up your graded assignment 2 on Monday from Bob. We will bring the remaining assignments to class on Thursday for pick up.
· Upcoming Practitioner Lunches: As a reminder, you are required to attend 3 of the 5 practitioner lunches. The last two lunches are noted below. Please be sure to sign up here if you plan to attend so we can order enough lunches
o 5/9 ESG Investing with Acadian Asset Management and Trillium Capital (11:45-12:45pm, E51-361)
o 5/16 Proxy Voting with State Street Global Advisors (11:45-12:45pm, E62-587)
· 5/15 Lunch with J-PAL Exec Director: The finance track is hosting a lunch with Rachel Glennerster, Executive Director, J-PAL on the use of RCTs in Measuring Social Impact. If you are interested, please RSVP here (12-1pm, E62-350). This does NOT count as one of the 3 required practitioner lunches.
·
Class Happy Hour
: There will be a happy hour
immediately after class next Thursday at Firebrand Saints. We’ll
also be inviting Mi3 and the Sustainability Summit folks--should be
a great way to get to know others interested in this space! As a
note, everyone will be responsible for buying their own
drinks/food.
Have a great weekend!
Announced on 05 May 2017 10:26 a.m. by Limor Bordoley
Template for final assignment and ESG scores sheet
Dear Students:1. A template for enterprise analysis for the final project has been posted to Stellar
2. If you need help downloading ESG data, please let me know. I have uploaded a spreadsheet with ESG scores for the US universe for Asset4 - 1700 companies.
Thanks !
Prof. Rao
Announced on 02 May 2017 3:00 p.m. by Gita R Rao
Assignment 3 Clarifications
Dear Students: The instructions provided by Rodney should enable you to download ESG information for the S&P 500 from Asset4 :both the top level composite ESG score and the next level "E", "S" and "G" scores.If you need help, please contact the librarian or reach out to me.
For financials on the companies you select, please use Bloomberg. We are trying to get Factset for the whole class, but it may take a few days.
Thanks,
Prof. Rao
Announced on 28 April 2017 2:06 a.m. by Gita R Rao
