Ownership lens investing is a growing movement, akin to climate or gender lens investing, that focuses on expanding ownership opportunities of businesses, real estate, and other assets for individuals and households who are disconnected from the asset-building tools that create wealth. This approach is gaining traction as a way to think about asset allocation for impact, as well as among philanthropy and worker-oriented organizations. The urgency is huge, given our nation’s stubborn wage and wealth gaps, with inequality being one of the great crises of our time.
In a recent webinar which we co-hosted with the Ownership Capital Lab, Julie Menter and Alison Lingane shared key insights from a recent briefing they co-authored on the investment opportunity for Employee Ownership (EO). We also heard the perspectives of experienced investors Priya Parrish, Partner and Chief Investment Officer at Impact Engine and Amon Anderson, Managing Director at Acumen America.
The conversation highlighted the impact of Employee Ownership, the need for different kinds of capital at this critical moment in the field’s growth, and the role that investors and grant-makers can play.
The Case for Employee Ownership
During the webinar's opening segment, Alison Lingane and Julie Menter shared high-level takeaways from the “Ownership Lens Investing: Capitalizing the Employee Ownership Opportunity” briefing. The briefing identifies employee ownership as a market-based, scalable solution to inequality. Broad-based employee ownership models—such as worker cooperatives, employee stock ownership plans (ESOPs) and employee ownership trusts (EOTs)—have been shown to outperform their peers in profitability, growth, and resilience. Employee-owned businesses also foster wealth-building for workers, especially those from low-income or marginalized communities, by offering higher wages, better job stability, and equity participation.
EO funds are aiming to raise $670M
We identified 27 funds that provide at least 30% ownership to employees within a few years of their investment. Through our research on these funds, we learned that they have about $500M in assets under management at this time. 22 of these funds are currently seeking to raise $670M in capital. The funds that are raising are offering a wide spectrum of returns from catalytic (under 5%) to “market rate” (over 15%). 11 funds are still in early stages of development which suggests that investment opportunities will continue to grow.
Capital is the biggest limiting factor for growth
90% of fund managers cite lack of capital as the primary factor limiting their growth. In addition, funds interviewed shared their perspectives on field-level needs (outside of their specific funds) that would support their efforts, including policy (31%), narrative and awareness (25%) and standardized impact metrics (19%).
Catalytic and grant capital are critical for impact
In addition to investment capital, there is also a need for subsidized and grant capital, as there is often a tradeoff between the percent of ownership granted to employees and the return to investors. Most of the impact-first funds have been completely or partially reliant on catalytic or grant capital to stand up and/or operate their funds. Unlocking scalable pools of subsidized capital would allow funds to grow the percent of companies that become employee-owned. Of course, we must ensure that strategies that tap subsidized capital at scale don’t hamstring funds—or the broader marketplace—from continuing to grow. The briefing outlines how different types of capital can be deployed in high-impact ways, while paving the road for scaling the sector in a way that maintains impact.
Amon Anderson: The Dual Power of Impact and Scale
Amon Anderson of Acumen America highlighted why employee ownership aligns perfectly with their mission of addressing poverty through scalable, systemic solutions. Amon noted that employee ownership offers a unique pathway for improving both work and wealth outcomes for low-wage workers. His examples included Acumen's investment in Everytable, a food company pioneering a social equity franchise model, and Obran Cooperative, a worker-owned conglomerate aiming to scale employee ownership through acquisitions.
He acknowledged that entering this space required rethinking traditional venture capital norms, particularly around governance structures. Unlike typical investor-led boards, employee-owned companies empower workers to participate in decision-making, fundamentally changing how companies operate.
Amon also highlighted the catalytic role policy could play in advancing employee ownership, such as government-backed financing structures and tax incentives. He urged stakeholders to prioritize collective action, pointing out that “fit is not an excuse”—there are ways for all types of investors to participate in and benefit from this movement.
Priya Parrish: Bridging Gaps in Capital and Narrative
Priya Parrish, of Impact Engine, provided a pragmatic perspective on what it will take to scale employee ownership. Priya explained that employee ownership is not a standalone asset class but a lens that can be applied across asset classes like private equity, private credit, and venture capital. She argued that framing employee ownership within traditional asset allocation models is critical to unlocking larger pools of capital.
One of Priya’s key points was the need for proof points: successful case studies of funds and companies delivering both financial returns and measurable impact. “It actually doesn't matter until we have proof points of funds and companies that literally did it, and we have data specifically from them on returns and the employee impact, you will not see change in the mainstream investment market” she said. She also pointed out that scaling this space requires both catalytic and market-rate capital, noting that even traditional private equity funds like KKR experimenting with employee ownership structures help legitimize the movement.
She cautioned, however, against oversimplifying employee ownership as a one-size-fits-all solution to inequality. Addressing root issues like wage disparities and job quality, even as ownership models are expanded, is important too. “I also need to make sure all these other tools and dimensions of a business are certainly aligned with what I want to be investing in.”
How to Double the Space
The webinar explored ideas on what it will take to double or even 10x employee ownership. Amon emphasized the role of policy and advocacy in creating market incentives for investors, such as expanding access to SBA financing for employee ownership transactions and making senior debt more accessible. Priya added that the movement needs to embrace a “big tent” approach, recognizing that a diversity of strategies—ranging from catalytic capital to diluted ownership structures—can collectively drive systemic change. In addition, Priya emphasized that this work requires a specific technical skill set, in particular how to underwrite cash flows, that investors should look for in the funds they back.
One important call to action was the need for narrative-building and education. Both investors and business owners need clearer frameworks for understanding the benefits of employee ownership, as well as tools for implementing these transitions.
A Call to Action for Investors
The call to action from Priya resonated with many in the conversation: “We got to write those checks. Both from your professional checkbook, but your personal one too.” As the field grows, funders need to consider market-rate investments as well as funds who focus on deep impact, incorporating 100% employee ownership, providing significant governance rights to employees, and focusing on bringing benefits to workers from communities that have been historically marginalized.
As ownership lens investing evolves from early adoption to broader acceptance, we are met with a moment of unprecedented opportunity. It will take the right mix of capital, policy, and collaboration to allow employee ownership to meet its potential to redefine how wealth and equity is built.
For a deeper dive into the research discussed during the webinar, check out the Employee Ownership Fund Landscape briefing. To learn more about joining this movement, visit Transform Finance or Ownership Capital Lab.
