Our Philosophy

Our investment philosophy is central to developing a successful portfolio of companies that will allow us to achieve our mission. To do so, we identified three key pillars below underpinning our investment philosophy and will help us fulfill our vision:
Growth-orientated, long-term investments
Minimum return of CPI + 150 bps
Indirect social impact
We will begin with investing in European and North American public equities only, to reduce the complexity involved in procuring accurate data. We will look to invest in emerging markets in the future to diversify our portfolio further once Prosper has been robustly established.

To deliver an indirect social impact, our investment portfolio is deliberately structured by social challenges, rather than industries. Investment teams work within these sectors to find exciting investment opportunities.

Our Strategy

To ensure adherence to our investment philosophy, we run each stock through our 5-stage investment process.

CORE VALUES

Analysts consider the extent to which the values of the business align with ours. It forms a basis for us to negatively screen certain companies / industries.

ESG SCREENING

We then rigorously screen each company using our ESG criteria. We have 6 weighted categories which allows us to both positively and negatively screen investments.

FINANCIAL EVALUATION

Next, we scrutinise each considered stock's financial metrics; we aim to purchase the stock at a discount to its intrinsic value. This increases our chance of outperforming the market.

GROWTH STORY

Furthermore, we seek to understand the "growth story" of the company - how it intends to adapt to an ever changing market and continue performing.

BUILD AND DIVERSIFY

We are aiming to diversify across a minimum of 6 industries and 6 countries. We have a 5-year investment horizon.
Prosper Social Finance CIC
Company No. SC588686
Registered at 19/2 Bernard Terrace, Edinburgh EH8 9NU
© 2018 Prosper Social Finance
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