In a discussion at The Desk with Samara Jaffe, Co-Founder & GM of Transform, Rilwan Meeran, Head of Impact Investing at American Student Assistance (ASA), shared his insights into how the national non-profit is reshaping the landscape of education and career development through strategic investments.
What is American Student Assistance?
ASA operates on multiple fronts to foster informed career choices among students. Annually, its student-led programs reach approximately 15 million young individuals, providing them with valuable insights into potential career paths. Additionally, ASA manages an impact fund, leads in thought leadership and advocacy, and supports mission-aligned organizations through substantial grant-making efforts.
ASA’s Investment Strategy
Launched in 2022, ASA’s Impact Fund plans to allocate $125 million over four to five years, focusing on investments in two key categories: mission-critical and mission-aligned companies. To date, ASA has already deployed $40 million and anticipates investing an additional $25 million to $30 million this year into companies that align with its impact initiatives.
Investments are categorized into three primary areas:
- Career-focused education
- Workforce development
- Post-secondary pathways
Performance and Reporting
2023 marked the creation of ASA’s first internal annual report, a document that will likely be made public in the future. This report, expected to grow more comprehensive each year, tracks the performance and impact of ASA’s investments.
Engaging with Startups
For direct investments, ASA partners with companies that align with one of its three investment buckets and co-invests with institutional investors. These companies are required to regularly report on corporate governance and impact data, ensuring transparency and accountability.
The Competitive Landscape of Impact Funds
The impact fund space is experiencing rapid growth, primarily because it adopts a venture capital and private equity approach to private market investments while adding a layer of impact assessment to ensure beneficial outcomes.
Defining Impact in Investments
Rilwan clarified what qualifies as impact versus philanthropy using a practical example: while a sneaker company donating shoes is philanthropic, another using sustainable materials directly ties its business operations to positive environmental impacts, thus qualifying as true impact.
New Initiatives and Opportunities
In a significant move in November 2023, ASA’s Board approved an investment of $25 million to support diverse managers, early-stage companies, and minority-managed funds, further broadening its impact.
Getting in Touch with ASA
Companies interested in partnering with ASA or learning more about its impact initiatives can reach out directly via email at rmeeran@asa.org.
As ASA continues to lead by example, it fosters growth in educational and workforce opportunities and sets a precedent for how non-profits can effectively wield impact investing to drive societal change.
To view more information and insightful conversations at The Desk, visit the Transform blog.