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Laurie Lee: Why Most Impact Capital Isn't Impactful

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Trillions of dollars are marketed as "impact investing" and aligned with the UN Sustainable Development Goals, yet the vast majority of this capital fails to reach the communities that need it most. Why is there such a massive disconnect between institutional finance and on-the-ground reality? Impact investing barely overlaps with the NGOs delivering the SDGs. Laurie Lee ran CARE International UK and Gates Foundation Africa, and found two thirds of impact capital wants full market returns. "If your impact investment only flows to safe, low-risk companies in developed markets, it isn't solving global poverty—it's just regular investing with better public relations. Here is the unfiltered conversation with Laurie Lee on the systemic divide between the financial sector and frontline NGOs, and what it really takes to deploy capital where it matters." This is TBLI Radical Truth with Robert Rubinstein. Lee went looking for the overlap between international NGOs and impact investors and found it far smaller than it should be. His case: roughly 15% of impact capital sits near capital preservation, and 15% of a trillion dollars is the size of the whole global aid budget. Fund the projects with a revenue stream from that, and aid goes where only aid can go. Laurie Lee was Chief Executive of CARE International UK for eight years. Before that he spent seven years at the Gates Foundation, three of them as Africa director, and served in the UK civil service and diplomatic service, including at DFID where he worked on the targets that became the Millennium Development Goals. WHAT'S COVERED - The Venn diagram problem: NGOs work on the SDGs every day, and almost none of that work reaches impact investors - Why CARE USA, World Vision and Mercy Corps Ventures have largely had to seed their own funds - Chipata in Lusaka: piped clean water for 600,000 people, funded with 10 million pounds, working 20 years later at roughly a pound per person per year - Why refuse collection kept failing until it was billed daily alongside the water, after which collection went from 5% to over 70% in weeks - Girls First Finance, founded by Andrea Pizziconi, and the market failure it targets: fee gaps, interest rate caps that keep private lenders out, and underwriting models that assume a young woman with no job is uncreditworthy In this episode of TBLI Radical Truth, Robert Rubinstein sits down with Laurie Lee—former CEO of Care International UK, former senior leader at the Bill & Melinda Gates Foundation, and former UK diplomat who helped draft the original targets that became the UN MDGs and SDGs. Lee draws on 25+ years of frontline global development experience to expose the cultural and structural chasm between private capital and NGOs, why mainstream impact investing avoids real systemic risk, and what it actually takes to deploy capital for tangible human progress. Time Stamp 00:00 - The Trillion-Dollar Impact Disconnect 03:15 - Meet Laurie Lee: From Drafting UN Goals to Gates Foundation & Care UK 07:45 - The Venn Diagram Problem: Why NGOs and Investors Speak Different Languages 18:30 - The SDG Washing Trap: Mapping Portfolios vs. Moving Capital 31:10 - Frontier Risk: Why Mainstream Impact Capital Shies Away from Poverty 44:25 - Bridging the Divide: Structuring Real Partnerships Between Finance & NGOs 56:10 - The Unfiltered Roadmap to Genuinely Impactful Capital 📌 Subscribe to TBLI Radical Truth for unfiltered, deep-dive discussions with sustainable finance challenging the conventional narratives around impact and the future of finance. https://www.youtube.com/channel/UCDBhRVM93uUnAAtqOMIz_yg?sub_confirmation=1 EXTRACTION How business takes your money, your work, your resources, your data and your future, while presenting itself as something else entirely. Robert Rubinstein's next book, from 30 years inside the system. If this conversation makes you question where your money is actually going, Extraction takes that investigation much further. Follow its progress in the free Radical Truth Discussion Network: https://tblicircle.com/share/Lnu4hDm8ayILGevs?utm_source=manual RELATED EPISODES - Kumar Garg, Renaissance Philanthropy, on building the fund layer philanthropy never built. - Rick Peck, The Philanthropy Guy, on why the overhead ratio tells you almost nothing. MORE ON LAURIE LEE - CARE International UK: https://www.careinternational.org.uk - Girls First Finance: https://girlsfirstfinance.com TBLI GROUP - https://www.tbligroup.com - Robert Rubinstein on LinkedIn: https://www.linkedin.com/in/robertrubinstein/ #ImpactInvesting #SDGs #BlendedFinance #InternationalDevelopment #NGO #SocialEnterprise #DevelopmentFinance #Philanthropy #ESG #GirlsEducation #LaurieLee #TBLIRadicalTruth Recorded in 2023. Figures quoted, including the GIIN market sizing, are from that date.

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