{"id":2433,"date":"2013-10-21T09:20:19","date_gmt":"2013-10-21T13:20:19","guid":{"rendered":"http:\/\/blogs.shu.edu\/ghg-development\/?p=2433"},"modified":"2014-06-19T00:00:55","modified_gmt":"2014-06-19T04:00:55","slug":"impact-investing-and-global-health-the-future-of-global-health-financing","status":"publish","type":"post","link":"https:\/\/blogs.shu.edu\/ghg\/2013\/10\/21\/impact-investing-and-global-health-the-future-of-global-health-financing\/","title":{"rendered":"Impact Investing and Global Health: The Future of Global Health Financing?"},"content":{"rendered":"

Courtney M. Page, Young Voices Blogger
\nGlobal Health Governance Research Intern, Council on Foreign Relations<\/p>\n

\"Bill<\/a>

Bill Gates speaks at a seminar in Oslo in this picture provided by Scanpix January 22, 2012, which discusses challenges of international aid and health. REUTERS\/Vegard Grott\/Scanpix<\/p><\/div>\n

Two weeks ago, JPMorgan Chase and the Bill and Melinda Gates Foundation rolled out the\u00a0Global Health Investment Fund<\/a>\u00a0(GHIF).\u00a0The GHIF has been\u00a0hailed as\u00a0the\u00a0first-of-its kind<\/a>; the fund, with\u00a0$94 million<\/a>\u00a0already committed,\u00a0is the first to allow individuals and institutions the opportunity to finance late-stage research and development of high-impact technologies and vaccinations that have the potential\u00a0to save millions, with the potential earnings for investors.<\/p>\n

This concept of investment is widely referred to as \u201cimpact investment,\u201d recently endorsed by U.K. Prime Minister, David Cameron,\u00a0at the Social Impact Investment Forum at the G8 Summit in June of this year as a vehicle to \u201ctackle the most difficult social problems<\/a>.\u201d The GHIF model for investmentincorporates\u00a0the public sector, international institutions,\u00a0bigpharma\u00a0and the private financial sector, all with the shared goal of making a positive impact on disease\u00a0prevention and control.<\/p>\n

How does this new\u00a0fund work?\u00a0The GHIF\u2019s managing member is a Delaware registered nonprofit; the Global Health Investment Corp. Lion\u2019s Head will manage the investments and day-to-day operations of the GHIF, working closely with the GHIF\u2019s sponsor, the Bill and Melinda Gates Foundation, who has agreed to underwrite 60 percent of capital losses of the Fund.\u00a0Unlike a hedge fund,\u00a0the carry does not go to the manager of the fund, but instead\u00a0is rolled back into global health research and development.\u00a0If investments are\u00a0successful<\/a>, investors receive both a return on capital and\u00a0an investment return, achieved with milestones and\u00a0royalties.<\/p>\n

Who<\/a>\u2019s investing from the onset? \u00a0GlaxoSmithKline, MERCK, and Pfizer\u00a0will not only offer monies to support the endeavor, but also their expertise.\u00a0And the money doesn\u2019t stop at\u00a0pharma. The GHIF is\u00a0also\u00a0attracting government agencies, such as\u00a0The Swedish International Development Cooperation Agency, as well as private companies like\u00a0The\u00a0Storebrand\u00a0Group,\u00a0whose purview extends to life insurance, asset management, and banking.<\/span><\/p>\n

While the fund is still in its early stages and\u00a0$94 million seems like a drop in the well:\u00a0it\u00a0is nearly triple the size of\u00a0the largest grant awarded by the U.S. government to fund late-stage research and development of a drug.<\/p>\n

What has the Global Health Investment Fund done for a dedicated force committed to solving the world\u2019s global health challenges? It has provided a new and creative\u00a0way to bring innovation solutions\u00a0and effective\u00a0treatments\u00a0into the global marketplace to make our society stronger and healthier; it has attracted an entirely new stream of revenue that would\u00a0havebeen invested elsewhere, but can now be invested in the healthy futures of individuals, communities, and nations\u00a0around the world.<\/p>\n","protected":false},"excerpt":{"rendered":"

Courtney M. Page, Young Voices Blogger Global Health Governance Research Intern, Council on Foreign Relations Two weeks ago, JPMorgan Chase and the Bill and Melinda Gates Foundation rolled out the\u00a0Global Health Investment Fund\u00a0(GHIF).\u00a0The GHIF has been\u00a0hailed as\u00a0the\u00a0first-of-its kind; the fund, with\u00a0$94 million\u00a0already committed,\u00a0is the first to allow individuals and institutions the opportunity to finance late-stage […]<\/p>\n","protected":false},"author":585,"featured_media":2434,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_et_pb_use_builder":"","_et_pb_old_content":"","_et_gb_content_width":"","_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[7,284],"tags":[343,341,344,342],"class_list":["post-2433","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-global-health-governance-blog","category-young-voices","tag-david-cameron","tag-gates-foundation","tag-global-health-investment-fund","tag-jpmorgan-chase"],"_links":{"self":[{"href":"https:\/\/blogs.shu.edu\/ghg\/wp-json\/wp\/v2\/posts\/2433","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/blogs.shu.edu\/ghg\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/blogs.shu.edu\/ghg\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/blogs.shu.edu\/ghg\/wp-json\/wp\/v2\/users\/585"}],"replies":[{"embeddable":true,"href":"https:\/\/blogs.shu.edu\/ghg\/wp-json\/wp\/v2\/comments?post=2433"}],"version-history":[{"count":1,"href":"https:\/\/blogs.shu.edu\/ghg\/wp-json\/wp\/v2\/posts\/2433\/revisions"}],"predecessor-version":[{"id":2435,"href":"https:\/\/blogs.shu.edu\/ghg\/wp-json\/wp\/v2\/posts\/2433\/revisions\/2435"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/blogs.shu.edu\/ghg\/wp-json\/wp\/v2\/media\/2434"}],"wp:attachment":[{"href":"https:\/\/blogs.shu.edu\/ghg\/wp-json\/wp\/v2\/media?parent=2433"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/blogs.shu.edu\/ghg\/wp-json\/wp\/v2\/categories?post=2433"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/blogs.shu.edu\/ghg\/wp-json\/wp\/v2\/tags?post=2433"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}