In the article, Grassie talked about the role that banks should be playing in society, and the commitments that Deutsche Bank is making in the social finance space: “Four years of financial crisis have left banks facing a challenge in explaining their role in society and social businesses struggling to make ends meet. Impact investing, the term given to funding social enterprises, may offer a solution to both issues.”
"Social investment allows banks to put their core strengths to work – financial expertise, experience in dealing with risk, and an extensive network of relationships – and it can provide a return to investors." Grassie added.
The UK CEO also spoke about the Bank’s contribution last year to the Big Issue’s pioneering Social Enterprise Investment fund. The fund recently contributed about £500,000 of a £5m financing round to HCT Group and is targeting an ambitious performance-related return.
HCT, which employs long-term jobseekers as bus drivers in Hackney and beyond, expects to generate revenues of £28m this year.
Grassie also spoke about the Bank’s new Impact Investment Fund I: "Deutsche Bank stepped up its commitment this month, launching an inaugural impact investment fund with £10m of its own money. In doing so, it became the first investment bank to create a discrete ring-fenced fund that will bring the discipline of private equity managers to social impact investing."
"The Bank’s goal is to create a track record that will enable it to launch new funds, attract a wide range of external investors and profitably deliver a significant amount of money to social enterprises." Grassie added.
The full article can be read on the Financial News website.