The Climate Conference kicked off with a Speakers’ Dinner, which Federal Street hosted in New York the evening before. Here, John LaPann, Jenny Russell of the Merck Family Fund and Stewart Hudson from the Emily Hall Tremaine Foundation enjoy a laugh.

New York, November 20, 2008 - What started as an intimate discussion among like-minded investors in Boston in November of 2007 grew into an important conference attended by over 400 participants from foundations across the country.  While still sponsored by the Merck Family Fund and Federal Street Advisors, the original concept was expanded and a number of foundation partners focused on mission-related investing (MRI) were added to the steering committee.

Titled "The New New Economy: Investing with a Climate Change Lens During Challenging Times," this year's conference continued the discussion from 2007 to reflect the realities of all that has happened with the economy, politics and the planet in 2008.  Organized and facilitated by Rockefeller Philanthropy Advisors, the conference built on the original dialog from '07, but with more scale to enable a broader discussion of issues among a larger audience.

Federal Street president John LaPann moderated one of the more lively and best-attended sessions of the day.  Titled Adventures in Venture Capital, Private Equity and other Market-Rate Investments, the panel explored the attractiveness of investments that offer energy solutions and sustainability at their core.  This has become a new area of interest for foundations and investors as public equity markets have become more volatile.  

Panelists for the session were Wilber James of Rockport Capital Partners, Diana Propper de Callejon of Expansion Capital Partners, LLC and Martin Whittaker of MissionPoint Capital Partners.  The mood of the discussion was lively, but also tempered as consensus was that there are certainly challenges ahead with an uncertain timeline.

Some of the highlights of that discussion included:

• The panelists agreed that one of the best signs of opportunity for green venture investing today is the fact that management teams at many of the companies bringing green technology to market have improved significantly. Senior (and seasoned) executives with track records of success have replaced professors and engineers as the CEOs of companies developing promising technology.
  
  
• Whether investors like it or not, public policy will be a huge driver of the success or failure of many of the new technologies currently being developed. This situation is unique as venture capital tends to avoid industries that rely heavily on public policy for success and growth. Panelists felt, and the audience generally agreed, that a progressive national energy policy will accelerate the commercialization of many emerging technologies and help increase scale at the companies which have developed them. And because the macro economic environment lacks opportunities for investor "exits," it was felt that Capitol Hill will need to be a regulatory and financial force.
  
  
• One cautionary message from the discussion was to avoid euphoric investing and trying to compete with "dumb money" as one panelist put it, a reference to new and zealous venture money coming in and driving up valuations. No matter an investor's level of enthusiasm for an investment, fundamentals will always matter and always need to be measured and monitored.

"It was a pleasure to moderate this panel," said LaPann. "The combination of three knowledgeable, seasoned experts and an informed and engaged audience led to a spirited exchange of information and ideas.  There are some terrific investment opportunities available now, and I think everyone left the room with a better sense of how they can proceed."

Media Contact: Larry Marchese, Castle Shore Communications
                      lmarchese@castleshore.com