The Bill & Melinda Gates Foundation created the Strategic Investment Fund (SIF) team to connect the promise of philanthropy with the power of private enterprise to address urgent challenges in global development, global health, and education. They launched with a $400 million pilot, which has since grown to a $2.5 billion effort.

They see strategic investments, a form of impact investing, as a critical piece of the puzzle—especially when paired with the work of their foundation colleagues and partners to support projects in the United States and around the world.

They partner with entrepreneurs, companies, and other organizations to create incentives that harness the power of private enterprise to create change for those who need it most. In connection with their investments, companies agree to use the investment proceeds in support of specific foundation programmatic strategies.

They know every investment is unique, and the team approaches each opportunity with the right tools to achieve long-term, measurable success.

They leverage a suite of tools, including:

• Direct Equity Investments: When their strategy aligns with a company’s, they provide equity to support the company’s growth.
• Fund Investments: To build a portfolio of investments in sectors that serve those who need it most, the foundation also makes investments through intermediaries like investment funds. They act as limited partners in these funds where their strategies align.
• Loans and Credit Enhancements: They provide low-interest loans to companies and nonprofits—offering the capital necessary to scale promising products and services that lift people out of poverty.
• Volume Guarantees: They encourage increased production and reduced prices for their target populations by providing suppliers with volume guarantees. The foundation’s guarantee of a volume of sales over a specified period allows suppliers to focus on investing in production and reducing the cost of critical products, such as vaccines, drugs, and contraceptives, making them more available and affordable to people with the greatest need.