The Aureos Legacy Project

Documenting the transformative role of Aureos Capital in Impact Investing.

A Journey of Impact & Innovation

Aureos Capital, which operated from 2001 to 2012, played a transformative role in the evolution of Impact Investing, leaving an indelible mark on the financial industry. Throughout its existence, the firm was dedicated to achieving both competitive financial returns and measurable social and environmental benefits. By the time it was taken over in 2012, Aureos had grown to become the largest sustainable investor in small and medium-sized enterprises (SMEs) globally, actively contributing to sustainable development in emerging markets.

At the heart of Aureos’s legacy was its early and bold recognition of Impact Investing as a viable investment strategy. Long before the concept became mainstream, Aureos integrated environmental, social, and governance (ESG) factors into its investment decisions as part of a value creation strategy, for long-term sustainable growth of the businesses and to minimise risk such as reputational and business disruption. In doing so, the firm proved that financial performance and positive societal outcomes could be achieved simultaneously, challenging the conventional view that profit and purpose were mutually exclusive. This pioneering approach paved the way for future investors to consider the broader impact of their capital beyond just financial returns.

Aureos’s influence extended beyond investment decisions – it played a key role in shaping the practices and standards of the emerging Impact Investing industry. The firm early on developed proprietary tools as part of its investment decision making process for identifying and measuring key quantitative and qualitative metrics at the due diligence stage and regularly after investing. Annually the firm reported on the social and environmental impact of its investments alongside financial performance. These contributions helped to establish the methodologies and practices that are now widely adopted by Impact Investors globally. Aureos’s focus on transparency and accountability set a new standard, inspiring other firms to follow suit and contributing to the widespread acceptance of ESG integration into the investment process.

Aureos’s investment portfolio left a lasting legacy across a range of industries, including financial services, construction, healthcare, engineering, manufacturing, consumer goods/services, and telecommunications. By allocating capital to businesses aligned with its impact objectives, the firm played a vital role in driving sustainable growth and fostering positive change in communities around the world.

Perhaps most enduring is the ripple effect of Aureos’s influence on a new generation of investors and entrepreneurs. Its success stories and the tangible positive outcomes achieved by its portfolio companies continue to inspire others to pursue both financial and impact returns by setting financial and social or environmental goals. The firm’s impact lives on in the ongoing efforts of individuals and organisations committed to creating positive change through investment.