$10,000 Prize Kellogg-Morgan Stanley Sustainable Investing Challenge 2021

Contestants must propose and defend a strategy that uses finance and investment tools rather than an operating enterprise to address an environmental or societal challenge. The competition is an opportunity to apply core finance principles to target the economic, social and environmental challenges that drive the field of sustainable investing. Pitches might focus on areas like water, energy, food, social mobility, climate change, education or healthcare, among others. Contestants are encouraged to apply the entire spectrum of investment tools, styles and asset classes.

The Challenge seeks to identify the next generation of sustainable finance practitioners, connect emerging leaders with industry professionals, and foster even greater emphasis on sustainability at graduate schools around the world.

Teams of graduate students are invited to submit a two-page prospectus in February that outlines an innovative financial vehicle that addresses a sustainability challenge and meets the requirements of an institutional investor (social operating enterprises are not applicable). Each prospectus should appropriately address the guidelines provided. Ten finalist teams will be selected from the pool of submissions and announced by March. Finalists will present their proposals to a panel of judges at Morgan Stanley in New York on April 9, 2021.

Guidelines

As the world’s population approaches 9 billion people by the year 2050, the challenge of meeting human demand for scarce global resources will intensify. Finance has a key role to play in meeting this challenge. Moreover, an increasing number of institutional investors are seeking sustainable investment opportunities for their portfolios. Specifically, these investors seek to identify investment strategies that can meet the financial needs of their organizations by investing in funds, investment vehicles, or direct investments that are consistent with the principles of sustainability and impact. Teams are encouraged to think beyond social enterprises, venture capital fund vehicles and strategies.This competition requires you to propose and defend a sustainable impact investment strategy that uses finance and investment tools to create an innovative solution to an environmental or societal challenge. Integral to this competition are first, that you are creating a financial vehicle, and second, that your financial vehicle will have social impact.

• University Endowments
• Retirement and Pension Funds
• Family Foundations
• Family Offices

The proposal must be a fit for an institutional investor who is seeking:

• Both competitive returns and positive social and/or environmental impact
• Risk management that is commensurate with the target returns
• Transparent performance metrics for both the financial and social return
• Clear linkage between program outcomes and social impact

The institutions are open to multiple asset classes, including but not limited to:

• Private equity/venture capital
• Real assets
• Public equities
• Fixed income securities
• Microfinance lending and investing

The Kellogg-Morgan Stanley Sustainable Investing Challenge is looking for innovative investment ideas that balance the tension between financial and social return rather than sacrifice either priority. There is no limitation on asset class or investment vehicle and teams are encouraged to think creatively. The focus is on investment vehicles and fund strategies versus companies.

Student Prospectus Submission

Please click on “Submit a Prospectus” to submit your two page prospectus. Remove all identifying student name and school information from the prospectus before submission.

Finals Competition

The ten teams selected from the previous round will convene on April 9, 2021 at Morgan Stanley headquarter in New York City for a day-long competition. Each team will have 10 minutes to present its pitch to a panel of judges and will be expected to answer 10 minutes of questions from the selection panel. Presentation suggestions are provided below. The selection panel will be composed of experienced institutional investors and officers of foundation funds and endowments, as well as other professionals in the field. The same selection criteria will be used in the first and second rounds of competition.

For the finals competition, prepare a presentation for the selection committee that lays out your investment strategy and identifies the environmental and/or social impact that your investment vehicle will address. Presentations should:

• Clearly explain how the financial vehicle will achieve the desired social and/or environmental impact defined in the proposal.
• Communicate the details of the investment vehicle including potential market size, strategy for managing risk, target investor, and why the proposed is a fit with their portfolio, financial viability, potential returns, and investment timeframe.

You may include individual team member names in your presentation but please do not include any identifying school information. You may also include a list of organizations/individuals you have consulted.