“I do 100 percent impact investing. A paradigm shift in capital investment by foundations.”
The topic of impact investing has gained more and more attention in recent years. This involves investing in companies that generate a positive social or environmental impact in addition to financial returns. But what happens when you focus entirely on such investments?
That’s exactly what Peter Kraus, chairman of the KSH Foundation, has done. His approach is to invest 100 percent of the foundation’s assets in companies that have a positive impact on the world. A radical step that is so far unique in the German-speaking foundation landscape.
This article will highlight the benefits of such a paradigm shift and the hurdles that need to be overcome. In addition, it analyzes how Peter Kraus’ approach could impact the capital investment of foundations and what impulses it could set for the entire industry.
A shift that could change the world
The idea of investing all of an endowment’s assets in companies that have a positive effect on the world could actually make a big difference in the long run. The more capital that flows into such companies, the stronger they become and the greater their influence on society.
Another positive aspect is that investments in such companies are often financially profitable as well. Because companies that work to make the world a better place often encounter positive feedback from customers and become more economically successful as a result. Thus, Peter Kraus’ approach can simultaneously ensure a higher return for the foundation.
Impact investing: capital investment with social added value
Impact investing describes a form of capital investment that focuses not only on returns, but also on social or environmental benefits. Investors use their money specifically to promote positive change in areas such as education, health or environmental protection. In this way, impact investing contributes to sustainable development and enables investors to make a contribution to socially relevant issues.
In the context of foundations, the approach of impact investing is gaining in importance. Foundations can fulfill their purpose while generating returns through targeted investments in social projects or sustainable businesses. It is not a matter of investing exclusively in social or environmental projects, but finding a balance between financial and social goals.
A paradigm shift in foundation investing occurs when foundations decide to invest 100 percent of their capital in socially and environmentally responsible projects. However, this requires a rethinking of how money is handled and a consistent focus of the foundation on its sociopolitical role. At the same time, moving to 100 percent impact investing can also send a strong signal to other investors and help drive the shift toward sustainable investing.
- Impact investing enables targeted investment in social and environmental projects
- Foundations can fulfill their purpose and still generate returns through the impact investing approach
- A paradigm shift in foundations’ capital investment towards 100 percent impact investing requires a rethinking of how money is managed and a consistent focus on socio-political goals

Impact investing as a strategic investment decision for foundations
In recent years, foundations have increasingly considered impact investing as part of their investment strategy. Why? Because impact investing not only generates financial returns, but also promotes social benefit and environmental sustainability.
Foundations have a responsibility to use their financial resources wisely and make a sustainable contribution to society. Impact investing allows foundations to invest specifically in companies, organizations or projects that have a positive impact on the environment and humanity. With this strategic investment decision, foundations can maximize their impact in the world while minimizing financial risk.
- Financial returns and social benefit: Impact investing enables foundations to create a win-win situation. By investing in socially and environmentally responsible companies, they can not only achieve a financial return, but also have a positive impact on society.
- Long-term impact: impact investing is a long-term investment decision. By investing in companies and organizations that are committed to social and environmental sustainability, foundations can achieve long-term impact and create positive change in society.
As a paradigm shift in foundation investing, impact investing opens up great opportunities to generate financial returns and social benefit. Foundations should seriously consider integrating impact investing as an important part of their investment strategy in order to fulfill their social responsibility and at the same time ensure their financial sustainability.
Foundations in search of suitable impact investments
Impact investing has become an important issue for many foundations in recent years. The idea is to invest funds specifically in projects that generate financial returns as well as positive social and environmental impacts. But how do foundations find suitable impact investments?

A first step is to define your own investment goals and how much risk the foundation is willing to take. Based on this, suitable investment strategies and investment areas can be identified.
Additionally, networks and experts can be consulted to find potential investment opportunities. Looking at existing successful impact investments can also help identify suitable projects.
Another option is to find suitable projects with the help of specialized rating agencies and databases active in the field of impact investing. These organizations can assist in evaluating the social and environmental impact of an investment and thus facilitate the decision-making process.
- Defining investment objectives
- Identify investment strategies and areas of investment
- Consult networks and experts
- Looking at existing successful impact investments
- Using specialized rating agencies and databases to identify investment opportunities
Examples of successful impact investments by foundations
Foundations are playing an increasingly important role as impact investors*. Increasingly focusing on investments that not only generate a financial return but also have a positive social or environmental impact. Some successful examples include:
- The California Endowment: This foundation has invested more in affordable housing in recent years to combat homelessness in California.
- Bertha Foundation: The Bertha Foundation has invested in various initiatives to improve working conditions and access to education in Africa over the past few years.
- Robert Bosch Stiftung: In recent years, this foundation has increasingly invested in the development of technologies that have a positive effect on the environment.
These examples show that impact investing can not only provide financial returns, but can also help address complex societal challenges.
Overall, these examples also show that foundations can play an important role in transforming capital markets. As more foundations embrace impact investing, more companies will be encouraged to change their business models and practices to achieve social and environmental goals.