Generation Investment Management

Generation Investment Management

Generation Investment Management launched in 2004 when David Blood, a former Goldman Sachs Asset Management CEO, partnered with Al Gore to build an investment firm that would treat sustainability research as a core input to financial performance. The partnership was unconventional — a career asset manager and a former vice president creating a for-profit investment platform rather than a policy shop or foundation. London became the headquarters, with a second office established in San Francisco to anchor its US presence. The firm runs two principal strategies. The Global Equity strategy holds a concentrated portfolio of 30–40 publicly traded companies selected through integrated financial and sustainability analysis. The Growth Equity strategy, launched later, invests in private companies at the expansion stage, targeting businesses that enable the transition to a sustainable economy. Confirmed public equity positions have included Microsoft, Applied Materials, and Thermo Fisher Scientific (per SEC filings, 2024). Private holdings include Octopus Energy, the UK-based renewable energy retailer, and Andela, a global talent network for software engineers. The firm invests across North America, Europe, and selectively in Asia. Total assets under management have grown steadily from roughly $12B in the mid-2010s to approximately $36B by late 2022 (per The Wall Street Journal, November 2022). The leadership group includes long-tenured partners beyond the founders, such as Lila Preston and Mark Ferguson, who oversee key investment functions. The firm also operates the Generation Foundation, a separate philanthropic entity focused on climate justice and economic inclusion. In 2021, Generation closed its Sustainable Solutions Fund IV at $1.7B, its largest growth equity vehicle to that date (per the firm, July 2021). What genuinely distinguishes Generation is its governance structure. The firm is an independent partnership — not a subsidiary of a larger financial institution — allowing it to operate without the quarterly earnings pressure that shapes many asset managers. The partnership agreement reportedly includes a commitment to multi-decade capital allocation, and the firm has publicly stated it evaluates investment returns over seven-year rolling periods rather than calendar years. This structure directly challenges the standard institutional asset management incentive model.