“Impact investing represents a different investment thesis on the best way to find and create value. ”
— Michael O’Leary
In the fast-evolving world of impact investing, few individuals stand out as prominently as Michael O’Leary. Recently appointed as a Partner and Co-Head of L Catterton Impact Fund, Michael has a wealth of experience and a compelling vision for responsible capitalism.
Formerly a Managing Director at Engine No. 1, Michael made headlines globally by orchestrating one of the most successful impact-focused activism campaigns in history.
Despite holding a mere 0.02% of share capital, Engine No. 1 successfully replaced three members of Exxon’s board, underscoring the potency of impact activism.
He was also on the founding team of Bain Capital’s impact fund and invested in consumer, industrial, and technology companies through Bain Capital’s private equity fund.
Now, at L Catterton, one of the world’s foremost private equity funds specializing in consumer brands, Michael leads the charge in integrating sustainability and impact considerations into the firm’s investments.
This strategic move reflects a broader industry trend toward aligning financial success with positive societal and environmental outcomes.
Michael’s co-authorship of ‘Accountable: The Rise of Citizen Capitalism’ further illustrates his commitment to shaping the future of capitalism. The book delves into the promises and challenges of the sustainable investing movement, offering valuable insights for investors, corporations, and policymakers alike.
With a solid educational background, including a BA in Philosophy from Harvard University and an MBA from the Stanford Graduate School of Business, Michael combines academic rigor with real-world impact.
His involvement as an economic policy advisor in the United States Senate and participation in two presidential campaigns underscore his dedication to effecting positive change on a broad scale through an alternative model of capitalism.
In this episode, he shared a lot of insights into:
- Shareholder activism for sustainability and development
- Citizen capitalism
- Impact investing in the public markets
- Impact investing in the consumer sector
- And much more
I really learned a lot from my discussion with Michael, and I hope you will too! Tune in.
Listen to the episode on Apple Podcasts, Spotify, Overcast, Podcast Addict, Pocket Casts, Castbox, Google Podcasts, Amazon Music, or on your favorite podcast platform. You can watch the interview on YouTube here.
What was your favorite quote or lesson from this episode? Please let me know in the comments.
SCROLL BELOW FOR LINKS AND SHOW NOTES…
SELECTED LINKS FROM THIS EPISODE:
- Connect with Michael O’Leary: LinkedIn
- Accountable: The Rise of Citizen Capitalism Book and Featured Publications
- An ESG Reckoning Is Coming
- Bain Capital
- Engine No. 1
- Exxon
- L Catterton
- Stakeholder Capitalism: Moving Forward from Mere Happy Talk
PEOPLE MENTIONED:
- Deval Patrick
- Warren Valdmanis (co-author of ‘Accountable: The Rise of Citizen Capitalism’)
SHOW NOTES:
[00:00] Episode introduction
[01:25] Michael’s background
[16:56] Citizen capitalism – alternate model of capitalism investment thesis
[35:36] Exxon shareholder activism campaign
[53:07] Using shareholder activism for long-term sustainable development
[57:56] Does impact investing have any impact on public markets?
[01:12:06] Impact investing in the consumer sector
[01:34:31] The biggest challenge to impact investing
MORE MICHAEL O’LEARY QUOTES FROM THE INTERVIEW:
“In finance, it’s all about ‘show me the evidence.’ The beauty of this narrow focus on profit, share price, and equity value is that once a path is proven, it becomes the universal direction everyone follows. ”
— Michael O’Leary
“Companies can be more profitable focused on ESG only insofar as consumers care about it. ”
— Michael O’Leary
