Future Business Partnership is a focused team of sector specialists working to drive the sustainable transition of the household consumer goods industry. Pulse 2.0 interviewed Future Business Partnership co-founder and managing partner Vishesh Srivastava to learn more about the firm.
Background Of The FBP Team
After asking Srivastava about the background of the FBP team, he said:
“The whole FBP team has backgrounds working for established private equity investment firms and focusing on investing in consumer businesses, helping them grow and internationalize through a combination of capital, expertise, and specialist industry network. We left our previous roles and created FBP because we want to do this for the leading eco-friendly and socially responsible consumer brands so that their growth and success drive the transition of household consumption towards a much more sustainable future.”
Favorite Memory
What has been Srivastava’s favorite memory working for the firm so far? Srivastava shared:
“We’re experiencing tremendous momentum and making new favorite memories frequently! Last year, both our investee companies reported having improved revenues and profits since we invested, and they’ve both celebrated quantifiable improvements in their environmental impact. We’re very proud of their work. But like any good business, our favorite moments are all about the team. So far, we’ve enjoyed an amazing success rate in hiring new joiners and we don’t take it for granted. We celebrate each and every time. I know in a fast-scaling business we can’t expect that success rate to last forever. But for now, we’re really proud of how the team is building – each member brings raw talent, experience, work ethic, deep mission alignment, and chemistry. Long may it last!”
Significant Milestones
What have been some of your firm’s most significant milestones? Srivastava cited:
“Most recently, we are incredibly proud to have certified as a B Corp with the UK highest-ever score of 174. The score is also the highest in the world among equity investment firms, of which there are over 700 certified B Corps.”
“The aspects contributing to this score include our impact model of working exclusively with companies having high environmental and social standards, ethical missions, and a commitment to sustainability. Additionally, we scored well in areas such as governance, workplace policies, inclusive culture, ethical supply chain practices, and diverse founder representation. We also gained points for integrating ESG considerations into every aspect of our value chain, including screening, business planning, incentive structures, and legal rights. More details can be found here.”
Investment Success Stories
After asking Srivastava about investment success stories, he highlighted:
“FBP has made two investments to date, in Netherlands-based baby care brand Naïf and in Big Green Smile, an e-commerce platform that curates the best eco-home and green personal care products for consumers across Europe. Both businesses, established market leaders in their niches, have been certified with B Corp’s high standards of social and environmental performance. Both of them are contributing in a meaningful and measurable way to the transition towards sustainable household consumption.”
Industry Focus
What are some of the industries that FBP is focused on? Srivastava noted:
“Household consumption, the largest sector of the economy, is responsible for more than 60% of greenhouse gas emissions globally and a huge amount of resource degradation.”
“Every business FBP backs will drive the decarbonization of this sector through circular economy, resource efficiency, or greener product design. Food, packaging, personal care, waste reduction, hygiene products, manufacturing, beauty products, deliveries, health and wellness, and cleaning products are just some of the areas where FBP is looking to invest in brands that are addressing these sectors with green alternatives.”
Differentiation From Other Firms
What differentiates FBP from other firms? Srivastava emphasized:
“Every one of FBP’s differentiating factors has its root in our built-in belief that making a positive difference for people and the planet will drive commercial success. This is reflected, for example, in our unique carried interest or fee structure. Unlike conventional firms, FBP only earns fees when the companies in which we invest in demonstrate measurable improvements in both environmental impact and financial performance. To make sure we are not ‘marking our own homework,’ we use the B Impact Assessment score from B Lab to measure improvement; it is public, transparent, and continuously being improved. This approach ties 100% of success fees to social and environmental progress in portfolio companies, setting us apart from other impact-focused PE firms that might only link 10% of their carried interest earnings.”
Future Firm Goals
What are some of your firm’s future goals? Srivastava concluded:
“We’ve created a new investment model, a new incentive structure, purpose-built for the work which is needed for investment firms to play a positive role in a sustainable economy. Our goal is to prove that it drives financial success, thereby convincing others to follow so that the whole industry can move forward together.”
