Ronald Mourad Cohen

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Sir Ronald Cohen
Ronald Cohen at Social Capital Markets.jpg
Cohen in 2014
Born
Ronald Mourad Cohen

(1945-08-01) 1 August 1945 (age 78)
Egypt
NationalityBritish
Education Oxford University
Harvard Business School
OccupationVenture capitalist
TitleChairman, The Portland Trust and Bridges Ventures
Spouse(s)Carol Belmont (divorced)
Claire Enders (divorced)
Sharon Harel
Children2
Relatives Yossi Harel (father-in-law)

Sir Ronald Mourad Cohen (born 1 August 1945) is an Egyptian-born British businessman and political figure. He is the chairman of The Portland Trust and Bridges Ventures. [1] He has been described as "the father of British venture capital" [2] and "the father of social investment". [3] [4] [1]

Contents

Early life

Cohen was born in Egypt on 1 August 1945, to a Syrian-Jewish banker, Michael Mourad Cohen, [5] and a British mother, Sonia Douek, also of Syrian-Jewish origin. [6] [7] [8] In 1957, following the Suez Crisis, Cohen's family was forced to abandon all their assets and flee Egyptian President Nassar's persecution of Jews. [9] The family (including younger brother Andre) moved to England. His father started his own import/export business, but having arrived with just £10, life was a struggle. [5]

Though initially speaking only a few words of English, Cohen went to Orange Hill grammar school in North London, now part of Mill Hill County High School where despite describing it as "a school of very doubtful reputation" [10] he excelled.

Cohen won a scholarship to Oxford University, where he became President of the Oxford Union, and earned a degree in Philosophy, Politics, and Economics at Exeter College. He subsequently attended Harvard Business School, where he was a member of the Harvard Business School Rugby Club.

Career

After leaving Harvard Business School, Cohen worked as a management consultant for McKinsey & Company in the UK and Italy. In 1972, along with two former business school colleagues as partners, he founded Apax Partners, one of Britain's first venture capital firms. The company grew slowly at first, but expanded rapidly in the 1990s, becoming Britain's largest venture capital firm, and "one of three truly global venture capital firms". [9] Apax provided startup capital for over 500 companies, and provided money for many others, including AOL, Virgin Radio, Waterstone's, and PPL Therapeutics, the company that cloned Dolly the sheep. In 1996 Cohen helped establish Easdaq, a technology focused stock exchange intended to be the European counterpart to the American NASDAQ. He is the recipient of a Jubilee Award for services to Israeli business, awarded by Benjamin Netanyahu and the BVCA's Lifetime Achievement Award. He is a member of the Harvard Board of Overseers and is also a fellow of Exeter College, Oxford.

In 2002, alongside Jon Moulton, he was the inaugural inductee into the Private Equity Hall of Fame, at the British Venture Capital Association and Real Deals' Private Equity Awards. [11]

Social investment

In 2000, at the invitation of the Treasury he became Chairman of the Social Investment Task Force (SITF). The remit of the SITF was "to set out how entrepreneurial practices could be applied to obtain higher social and financial returns from social investment, to harness new talents and skills, to address economic regeneration and to unleash new sources of private and institutional investment". [12] The SITF made several recommendations to Government, including that it: (1) introduce Community Investment Tax Relief (CITR); (2) match finance to help set up the first community development venture capital fund; (3) encourage banks to disclose more of their lending activities; (4) to support legislative and regulatory changes to provide greater latitude and encouragement for charitable trusts and foundations to invest in community development finance; and (5) to create the Community Development Finance Association (cdfa) to provide support for community development finance institutions (CDFIs). [13]

In 2002, he co-founded and became chairman of Bridges Ventures, an innovative sustainable growth investor that delivers both financial returns and social and environmental benefits. [14] Bridges Ventures has raised eight successful funds to date: Bridges Sustainable Growth Funds I, II and III, the Bridges Sustainable Property Fund, the CarePlaces Fund, Bridges Property Alternatives III, the Bridges Social Entrepreneurs Fund, and the Bridges Social Impact Bond Fund. [15] The organisation currently has almost £600 million under management. [16] The portfolio includes a number of businesses who invest in regeneration areas or have a sustainable business model. Bridges Ventures has had several successful exits to date, including The Gym Group, The Office, Simply Switch, HS Atec and Harlands of Hull. [17]

In 2003, Cohen co-founded the Portland Trust with Sir Harry Solomon, co-founder and former chairman and CEO of Hillsdown Holdings. The aim of Portland Trust is to help develop the Palestinian private sector and relieve poverty through entrepreneurship in Israel. Portland Trust is involved in a number of important initiatives, including the development of financial and economic infrastructure, housing, trade, investment, and entrepreneurship. [18] The Portland Trust has offices in London, Tel Aviv and Ramallah.

In 2005, Cohen chaired the Commission on Unclaimed Assets. [19] which looked into how unclaimed funds from dormant bank accounts could be used to benefit the public. The final recommendation of the Commission was that a Social Investment Wholesale Bank be created to help finance charitable and voluntary projects by providing seed capital and loan guarantees. [20]

In 2007 he co-founded and became a non-executive director of Social Finance UK, a London-based advisory organisation that has worked to create a social investment market in the UK. The organisation provides access to capital, designs social finance interventions and offers advice to investors and social sector entities interested in delivering significant social impact. [21] It has developed the social impact bond which is a financial instrument that is an outcomes-based contract in which public sector commissioners commit to pay for significant improvement in social outcomes for a defined population. [22] Social Finance set up a pilot social impact bond with the Ministry of Justice (MoJ) in September 2010 to reduce re-offending amongst male prisoners leaving HMP Peterborough who have served a sentence of less than 12 months. During the Peterborough Prison pilot, experienced social sector organisations, such as St. Giles Trust and the Ormiston Children and Families Trust, provided intensive support to 3,000 short-term prisoners over a six-year period, both inside prison and after release, to help them resettle into the community. In July 2017, the success of the Peterborough Social Impact Bond was announced. The results showed reoffending of short-sentenced offenders reduced by 9% overall compared to a national control group. This exceeded the target of 7.5% set by the Ministry of Justice. As a result, the 17 investors in the Peterborough Social Impact Bond receive a single payment representing their initial capital plus an amount that will represent a return of just over 3% per annum for the period of investment. [23] Cohen is also a member of the board of directors for Social Finance UK's sister organisation in the United States, Social Finance US.

In 2010, Cohen chaired a review of the work of the SITF in 2010 and published a report titled Social Investment: Ten Years On which assess the changes that had happened over the last decade in the area of social investment. The report found that there are three specific initiatives that will help define the future of the social investment market in the UK: (1) establishing the infrastructure necessary to create a dynamic market in social investment through initiatives such as the Social Investment Bank; (2) creating new tools to deliver social change through financial instruments such as the social impact bond; (3) engaging the financial sector to invest in disadvantaged areas through the Community Reinvestment Act. [24]

Big Society Capital

Since its official launch in July 2011, Sir Ronald Cohen has been the Chairman of Big Society Capital, Britain's first social investment bank. The role of the BSC is to help speed up the growth of the social investment market, so that socially orientated financial organisations will have greater access to affordable capital, using an estimated £400million in unclaimed assets left dormant in bank accounts for over 15 years and £200million from the UK's largest high street banks. [25] Its first £1 million investment from dormant accounts has gone to the Private Equity Foundation, an organisation whose mission it is to support disadvantaged young people into employment, education or training. [25]

Charity

In January 2005, Cohen was appointed a trustee of the British Museum. Cohen is a member of the executive committee of the International Institute of Strategic Studies.

Controversies

Cohen was chairman of Apax at the time of the Apax-owned British United Shoe Machinery pension collapse in 2000 which left 544 workers, many of them long service, without any pension. Collapse followed demerger from USM-Texon and asset transfer between the companies. Pension funds were transferred to the new BUSM scheme two weeks before receivership, and 4 days before a new revaluation was due. [26] MPs Edward Garnier, Patricia Hewitt and Ashok Kumar all called for a proper enquiry, Garnier citing the "mysterious circumstances" under which the pensions "disappeared", [27] whilst Hewitt said "it is clearly important that such serious allegations are properly investigated." [28] No new investigation took place, leading Kumar to say "I think these people need flogging. I feel so angry on behalf of decent upright citizens robbed of their basic human rights. ... These are greedy, selfish capitalists who live on the backs of others." [29]

In 2007, the GMB (trade union) blamed private equity firms for the collapse of 96 pension funds and linked Cohen with losses totalling £81m at Dexion, British United Shoe Machinery and USM Texon. [30]

Politics

In 1974 Cohen stood as the parliamentary candidate for the Liberal Party in Kensington North, and in 1979 he stood as its European candidate in London West.

In 1996 he switched allegiance to the Labour Party, becoming a supporter of Tony Blair. In 2004, Cohen was the Labour Party's fourth largest financial supporter, after Lord Sainsbury, Sir Christopher Ondaatje and Lord Hamlyn.

In November 2011 he was financially linked with a new "non-political" movement in Israel, the sole goal of which is to change the country's electoral system. [31]

Personal

In 1972 Cohen married Carol Belmont; they divorced in 1975. In 1983 he married a second time, to Claire Enders; they divorced in 1986. Cohen married his third wife in 1987, Sharon Harel, daughter of Yossi Harel, the commander of the Holocaust survivors' ship Exodus. They have two children and live in London.

Bibliography

Related Research Articles

In the field of finance, private equity (PE) is capital stock in a private company that does not offer stock to the general public. Private equity is offered instead to specialized investment funds and limited partnerships that take an active role in the management and structuring of the companies. In casual usage, "private equity" can refer to these investment firms rather than the companies that they invest in.

<span class="mw-page-title-main">Venture capital</span> Form of private-equity financing

Venture capital (VC) is a form of private equity financing that is provided by firms or funds to startup, early-stage, and emerging companies that have been deemed to have high growth potential or which have demonstrated high growth. Venture capital firms or funds invest in these early-stage companies in exchange for equity, or an ownership stake. Venture capitalists take on the risk of financing risky start-ups in the hopes that some of the companies they support will become successful. Because startups face high uncertainty, VC investments have high rates of failure. Start-ups are usually based on an innovative technology or business model and they are usually from high technology industries, such as information technology (IT), clean technology or biotechnology.

An investor is a person who allocates financial capital with the expectation of a future return (profit) or to gain an advantage (interest). Through this allocated capital the investor usually purchases some species of property. Types of investments include equity, debt, securities, real estate, infrastructure, currency, commodity, token, derivatives such as put and call options, futures, forwards, etc. This definition makes no distinction between the investors in the primary and secondary markets. That is, someone who provides a business with capital and someone who buys a stock are both investors. An investor who owns stock is a shareholder.

<span class="mw-page-title-main">Financial services</span> Economic service provided by the finance industry

Financial services are economic services tied to finance provided by financial institutions. Financial services encompass a broad range of service sector activities, especially as concerns financial management and consumer finance.

A "fund of funds" (FOF) is an investment strategy of holding a portfolio of other investment funds rather than investing directly in stocks, bonds or other securities. This type of investing is often referred to as multi-manager investment. A fund of funds may be "fettered", meaning that it invests only in funds managed by the same investment company, or "unfettered", meaning that it can invest in external funds run by other managers.

<span class="mw-page-title-main">Apax Partners</span> British private equity firm

Apax Partners LLP is a British private equity firm, headquartered in London, England. The company also operates out of six other offices in New York, Hong Kong, Mumbai, Tel Aviv, Munich and Shanghai. As of December 2023, the firm had raised and advised funds of approximately $65 billion (USD). Apax Partners is one of the oldest and largest private equity firms operating on an international basis.

A private equity fund is a collective investment scheme used for making investments in various equity securities according to one of the investment strategies associated with private equity. Private equity funds are typically limited partnerships with a fixed term of 10 years. At inception, institutional investors make an unfunded commitment to the limited partnership, which is then drawn over the term of the fund. From the investors' point of view, funds can be traditional or asymmetric.

<span class="mw-page-title-main">Socially responsible investing</span> Any investment strategy combining both financial performance and social/ethical impact.

Socially responsible investing (SRI) is any investment strategy which seeks to consider both financial return and social/environmental good. The areas of concern recognized by the SRI practitioners are sometimes summarized under the heading of environmental, social and governance (ESG) issues: environment, social, and corporate governance. Impact investing is subset of SRI that is generally more proactive and focused on the conscious creation of social impact through investment. Eco-investing is SRI with a focus on environmentalism.

<span class="mw-page-title-main">Social finance</span>

Social finance is a category of financial services that aims to leverage private capital to address challenges in areas of social and environmental need. Having gained popularity in the aftermath of the 2008 global financial crisis, it is notable for its public benefit focus. Mechanisms of creating shared social value are not new; however, social finance is conceptually unique as an approach to solving social problems while simultaneously creating economic value. Unlike philanthropy, which has a similar mission-motive, social finance secures its own sustainability by being profitable for investors. Capital providers lend to social enterprises, who in turn, by investing borrowed funds in socially beneficial initiatives, deliver investors measurable social returns in addition to traditional financial returns on their investment.

<span class="mw-page-title-main">Alternative investment</span> Investments other than stocks, bonds and cash

An alternative investment, also known as an alternative asset or alternative investment fund (AIF), is an investment in any asset class excluding capital stocks, bonds, and cash. The term is a relatively loose one and includes tangible assets such as precious metals, collectibles and some financial assets such as real estate, commodities, private equity, distressed securities, hedge funds, exchange funds, carbon credits, venture capital, film production, financial derivatives, cryptocurrencies, non-fungible tokens, and Tax Receivable Agreements. Investments in real estate, forestry and shipping are also often termed "alternative" despite the ancient use of such real assets to enhance and preserve wealth. Alternative investments are to be contrasted with traditional investments.

Social Finance is a not for profit consultancy organisation that partners with governments, service providers, the voluntary sector and the financial community to find better ways of tackling social problems in the UK and globally. Founded in 2007, they have helped pioneer a series of programmes to improve outcomes for individuals with complex needs. Their innovations include the Social Impact Bonds (SIB) model which has mobilised more than £500 million globally in areas such as offender rehabilitation, children and family, homelessness and housing, young people at risk of becoming NEET, mental health and employment, loneliness and social isolation, and domestic violence.

Impact investing refers to investments "made into companies, organizations, and funds with the intention to generate a measurable, beneficial social or environmental impact alongside a financial return". At its core, impact investing is about an alignment of an investor's beliefs and values with the allocation of capital to address social and/or environmental issues.

Social enterprise lending is a form of social finance which refers to the practice of offering loans and other financing vehicles below current market rates to social enterprises and other organisations pursuing social goals. This is often referred to as "patient lending," or financing with "soft" terms. Patient lending recognises that projects with social outcomes often reach profitability later than commercial projects. Softening the terms of a loan means that a social lender may offer provisions such as longer loan terms, lower interest rates and repayment "holidays" where capital and interest repayments are not due until the project is profitable. Social lenders might also offer small grants as part of an investment package.

The Portland Trust was established to promote peace and stability between Israelis and Palestinians through economic development. It works with a range of partners to help develop the Palestinian private sector and relieve poverty through entrepreneurship in Israel. It facilitates sustainable economic development through catalysing initiatives to build quality employment and thriving private sectors. Their work advances the growth of strong societies in Israel and Palestine based on socio-economic mobility and inclusion for minorities and marginalised groups.

Big Society Capital Limited (BSC) is a social impact investor in the United Kingdom. Its mission is to grow the amount of money invested in tackling social issues and inequalities in the UK. It invests its own capital as well as enabling others to invest for impact too. The capital finances front-line social purpose organizations tackling everything from homelessness to mental health and fuel poverty, enabling them to grow and increase their impact.

Keith Reginald Harris is a London-based investment banker and financier with a 30-year career as a senior corporate finance and takeover advisor, having held senior executive positions at leading institutions Morgan Grenfell, Drexel Burnham Lambert, Apax Partners, and HSBC Investment Bank. He is a private equity investor with interests in varied private equity holdings in financials, media, and sport.

Africa Finance Corporation (AFC) is a pan-African Multilateral Development Financial Institution established in 2007 by sovereign African states to provide pragmatic solutions to Africa's infrastructure deficit and challenging operating environment. The Corporation bridges the infrastructure investment gap through the provision of debt and equity finance, project development, technical and financial advisory services.

Bridges Fund Management Ltd. is a fund manager that specialises in sustainable and impact investing. It invests in business, properties and social sector organisations, with a focus on four impact themes: health and wellbeing, education and skills, sustainable living and under-served markets.

Michele Giddens OBE is a leading figure in the social impact investment movement in the UK. She is chair of the UK National Advisory Board for Impact Investing. and co-founded Bridges Fund Management, a specialist sustainable and impact investment firm, alongside Philip Newborough and Sir Ronald Cohen, often described as "the father of British venture capital".

<span class="mw-page-title-main">National Investment and Infrastructure Fund</span> Sovereign wealth fund of India dedicated to infrastructure

National Investment and Infrastructure Fund Limited (NIIFL) is an Government owned company which maintains infrastructure investments funds for international and Indian investors anchored by the Government of India. The objective behind creating this organisation was to catalyse capital into the country and support its growth needs across sectors of importance.

References

  1. 1 2 Klion Forum with Sir Ronald Cohen: "Why Do We Need Social Capital Markets?",Columbia Business School,
  2. ↑ Brown picks tycoon to back power bid, The Sunday Times , 16 January 2005. Accessed 22 March 2006
  3. ↑ "Good Deals 10: Bond and bank are vital to sector's growth, says Cohen | Social Enterprise". Socialenterpriselive.com. 16 November 2010. Archived from the original on 18 December 2010. Retrieved 5 November 2015.
  4. ↑ Gianasso, Alexandre (9 October 2014). "An interview with Sir Ronald Cohen, the father of Venture Capital in the UK". Affairs Today. Archived from the original on 14 May 2015.
  5. 1 2 Mathiason, Nick (4 November 2007). "The high priest of money-making". The Observer. Retrieved 5 November 2015.
  6. ↑ "The high priest of money-making | 7 Days | The Observer". www.theguardian.com. Retrieved 10 December 2023.
  7. ↑ "Sir Ronald M. Cohen, MBA 1969". Harvard Business School Alumni. 1 January 2006. Retrieved 10 December 2023.
  8. ↑ "Lunch with the FT: Sir Ronald Cohen". www.ft.com. Retrieved 10 December 2023.
  9. 1 2 Profile: Sir Ronald Cohen: Midas with a mission – to make Gordon king, The Sunday Times , 23 January 2005. Accessed 22 March 2006.
  10. ↑ Archived 7 February 2012 at the Wayback Machine
  11. ↑ Archived 6 January 2009 at the Wayback Machine
  12. ↑ "Social Investment Task Force". Social Investment Task Force. Archived from the original on 29 August 2010. Retrieved 5 November 2015.
  13. ↑ "ENTERPRISING COMMUNITIES: WEALTH BEYOND WELFARE" (PDF). Socialinvestmenttaskforce.org. Archived from the original (PDF) on 20 March 2015. Retrieved 5 November 2015.
  14. ↑ "Home". Bridges Ventures. Retrieved 5 November 2015.
  15. ↑ "About Us". Bridges Ventures. Archived from the original on 30 October 2015. Retrieved 5 November 2015.
  16. ↑ "Our Funds". Bridges Ventures. Archived from the original on 8 November 2015. Retrieved 5 November 2015.
  17. ↑ Archived 2 June 2014 at the Wayback Machine
  18. ↑ Archived 17 March 2011 at the Wayback Machine
  19. ↑ [ dead link ]p
  20. ↑ "Charity plan for dormant bank funds". Archived from the original on 6 May 2015. Retrieved 9 February 2011.
  21. ↑ "We partner with government, social sector and the financial community to find better solutions to society's most difficult problems". Socialfinance.org.uk. Retrieved 5 November 2015.
  22. ↑ "A SIB is a financial mechanism in which investors pay for a set of interventions to improve a social outcome that is of social and/or financial interest to a government commissioner". Socialfinance.org.uk. Archived from the original on 3 February 2011. Retrieved 5 November 2015.
  23. ↑ Archived 16 July 2014 at the Wayback Machine
  24. ↑ "Cohen's Social Investment Task Force bows out | Social Enterprise". Socialenterpriselive.com. 19 April 2010. Archived from the original on 16 July 2011. Retrieved 5 November 2015.
  25. 1 2 "Big Society Bank launched - Press releases - GOV.UK". Cabinetoffice.gov.uk. 29 July 2011. Retrieved 5 November 2015.
  26. ↑ Pam Atherton (18 May 2005). "Another pensions problem for the Government". Sunday Telegraph. Retrieved 20 February 2008.
  27. ↑ "Stakeholder Pensions". Hansard. 25 July 2005. Retrieved 24 February 2010.
  28. ↑ Patricia Hewitt MP (21 June 2005), Letter to Alan Johnson MP Ref CARL002/050826
  29. ↑ Nick Mathiason (10 June 2007). "Private equity stole our pensions". Observer Newspapers. Retrieved 28 February 2010.
  30. ↑ David Hencke (4 June 2004). "Union seeks tax on private equity to refund pension losses". Guardian newspapers. Retrieved 4 September 2015.
  31. ↑ "הדפסה". nrg. Archived from the original on 26 December 2009. Retrieved 5 November 2015.
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