Realizing A New Economy: Our Vision for Purpose-Driven Private Equity
At Krisos, the impact fund we set up to buy companies and transform them into forces for good, we're not just reinventing work. We're reinventing private equity. Why? Because traditional private equity is in need of a serious upgrade.
Here's how private equity usually works:
- Buy a company
- Saddle it with debt
- Cut costs (and jobs)
- Extract maximum value
- Sell for profit
- Repeat
It's a model that prioritizes short-term gains over long-term sustainability. It's destructive, soul-crushing, and frankly, outdated.
Of course, not all PE firms are bad. But we can't deny the destructive effect they have on various sectors including health care and education.
In order for this to stop, it's time to reinvent the private equity model. It's time to start doing things differently.
Purpose-driven private equity
At Krisos, we buy companies and transform them into bossless, steward-owned businesses. Here's more about the powerful progress at the company we acquired last year.
Our goals?
- Create meaningful, high quality jobs
- Slash inequalities (both financial and social)
- Prioritize purpose over profit (by using steward-ownership structures)
We started our journey about 3 years ago and we decided to set up Krisos as a rather traditional investment fund.
Over the past two years, we learned that that's not enough to do what we want to do in the most impactful way.
Therefore, to make sure everything we do is truly mission-aligned, we needed to reinvent private equity too.
Krisos 2.0
After several months of hard work with impact experts, lawyers, notaries, investors, and so on, we landed on a purpose-driven private equity model.
We've rebuilt Krisos from the ground up. Soon, we'll be:
- Foundation-owned
- Evergreen
- Focused on perpetual impact
What does this mean?
It means excess profits go to a foundation that reinvests in new acquisitions and new impact. Think Patagonia's ownership structure, but for private equity.
It means no forced exits. Companies we acquire join a community of impact businesses for the long haul.
It means every company in our portfolio will be steward-owned, putting purpose before profit.
The future of capitalism
Traditional private equity optimizes for financial returns. We're optimizing for impact.
Is this charity? No. It's the future of capitalism.
We're building businesses that can do good and do well. Companies that create value for all stakeholders, not just shareholders.
It's a model that's sustainable, scalable, and actually gives a damn about the world we're leaving behind.
Who's ready to join us in building businesses that prioritize impact?
Want to learn more about Krisos? Drop me an email. Let's talk about how we can build a better future of business together.
