Booth Student-Managed Impact Fund Announces First Investment
Harvest Thermal transforms a home’s water tank into a thermal battery to drastically reduce home energy use.
- March 15, 2022
- Impact Investing
“My experience with the Tarrson Fund has taught me about all the different decisions leaders have to make, and it helped me think through how I would go about making them in the real world.”
Catalyzing Social Change
In addition to supporting student aspirations, the fund hopes to catalyze investment in companies with the potential to help solve some of the pressing challenges of our time.
The $1 million fund is structured to allow for riskier investments in early-stage companies that other investors might not be willing to support. The hope is that having the Chicago Booth name attached to that investment will help these social enterprises meet their fundraising goals, attract additional investors, and create impact.
Designed to be “evergreen,” the fund will reinvest all profits so students can make more and larger investments in the future. In the interim, at the suggestion of students, Booth leadership has invested some of the remaining balance into a local community development financial institution that makes loans to nonprofits across the Midwest. This $300,000, three-year loan will allow the fund to create additional impact while students continue to go through the process of finding their next investment.
The fund was made possible by a gift from Ron Tarrson, ’72 (XP-31), in honor of his brother Steven Tarrson, to provide students real-life impact investing experience and provide critical capital to groundbreaking social ventures.
The Tarrson Fund is now actively soliciting opportunities for its second investment, in the range of $25,000 to $100,000.
Fund leadership is also excited about how the fund can impact the student experience—whether students are already interested in impact investing professionally or exploring social impact opportunities generally. “Participating in the fund is a great opportunity for people who know they want to become the next great impact investor,” said Student Investment Committee member Turner. “And if you’re not sure that it’s for you, you should still be part of the Tarrson Fund team!”