In a recent fireside chat, Nicolas Celier, Managing Partner at Ring Capital, shared his expertise on impact investing, highlighting key trends and strategies. Hosted by Jovania Mudeo, the discussion covered various aspects of Ring Capital’s approach to fostering social and environmental impact through strategic investments.

Background and Ring Capital’s Mission: Nicolas Celier began by outlining his career journey, from M&A in Hong Kong to co-founding Ring Capital in 2017. Ring Capital focuses on investing in companies that address critical social and environmental challenges, managing over €450 million across different strategies, including growth impact funds and venture capital funds.

Investment Strategies and Synergies: Celier detailed Ring Capital’s multi-stage investment approach, which includes a growth impact fund, venture capital funds for Series A and B, and a seed fund in partnership with EDEC Business School. He emphasized the importance of identifying synergies between portfolio companies and leveraging these connections to foster growth and innovation.

Defining and Measuring Impact: A significant portion of the chat was dedicated to defining impact. Celier explained that Ring Capital uses a scorecard based on existing frameworks like the SDGs and GIN. Key criteria include intentionality, measurability, and potential impact. He highlighted the importance of aligning financial incentives with impact goals, noting that 50% of Ring Capital’s carried interest is conditioned on achieving impact business plans.

Technology and Future Trends: Celier discussed the role of technology in transforming the investment landscape. He predicted that AI and automation could handle up to 95% of an investor’s job, from deal sourcing to monitoring. However, he stressed the enduring importance of human skills in assessing entrepreneurs and making strategic decisions.

Challenges and Opportunities: The conversation also touched on the challenges posed by current global events, particularly in the US. Celier expressed optimism about Europe’s potential to lead in impact investing and emphasized the need for collaboration between the private and public sectors to drive meaningful change.

Team and Culture: Looking ahead, Celier underscored the importance of building a team with a blend of empathy, analytical skills, and a commitment to long-term value creation. He highlighted the need for investors who are both visionary and grounded in practical execution.

Conclusion: Nicolas Celier’s insights provide a comprehensive overview of the evolving landscape of impact investing. His emphasis on intentionality, measurable impact, and the strategic use of technology offers valuable guidance for investors and entrepreneurs alike.

Key timestamps:

00:09 Introduction to Impact Investing
00:38 Nicolas Sellier’s Background and Ring Capital Overview
04:04 Identifying Synergies Among Portfolio Companies
06:04 Defining Impact and Community in Investment Strategies
10:00 Linking Compensation to Impact Performance
10:48 Deal Origination Strategies in Impact Investing
13:32 Future Team Requirements for Impact Investing
15:47 The Role of Technology in Investment Management
17:15 Impact of US Economic Trends on Portfolio Companies
19:40 The Role of Public and Private Sectors in Impact Investing
20:51 The Divide Among Investors: Impact vs. Traditional
22:12 Resilience of Purpose-Driven Companies
22:56 Optimism Amidst Challenges
23:31 The Power of Choice in Shaping the Future