Beyond the Bottom Line

“THERE ISN’T A TRADEOFF BETWEEN DOING GOOD and making money,” Pattillo says. “I believe the two converge.” Pattillo was one of the first investors in the world to go 100-percent impact—his investments are committed to social impact as well as financial return. His Atlanta-based Gray Matters Capital (GMC) has invested $160 million in microfinance and education, primarily in South Asia, Africa and Latin America. Recent efforts include Gray Matters Kenya, which introduced more than 70 classrooms in the region by charging communities to rent modular units, and Wings Learning Centre, which uses a for-profit model to provide afterschool education to more than 500 students in Bangalore and Calcutta.

Pattillo is famous for his boldness. In 2003 he sold the eighth-largest real estate development firm in America to focus on microfinance. He has put several hundred thousand dollars of his own money into a room and asked entrepreneurs at the table to decide among themselves who should receive it. In the words of Emory business school professor Peter Roberts: “Nobody does that.”

Pattillo does, and successfully so. GMC’s investments span emerging markets and have provided employment to more than 100,000 people. He was one of Forbes’ “Top 30 Social Entrepreneurs of 2011” and is a member of the 100 Percent Impact Network, a group of investors who have committed their wealth to social or environmental impact. GMC is now focused on providing 100 million women with an education by 2036, when Pattillo turns 75. “Human initiative, resourcefulness and spirit are the greatest creators of value,” he says. “And the human capital drags the financial capital along for a surprisingly profitable ride.”

BOB’S TOP 3

REASONS TO IMPACT INVEST

• 3,000-year history

“The first Celtic journey of exploration was an impact endeavor launched by innovation in technology and agriculture.”

• Human capital has the highest return of any capital

“A nine-month spoken English course increases a Mexican woman’s income potential by 400 percent.”

• It’s transformational

“Impact investing brings you closer to the person you aspire to be. I’m a better father because of the work I do.”