Halifax treats donations “like a portfolio” while BlackArch and Silver Lane give a portion of their profits to charities

-Excerpted from August 2, 2016 article by Keith Button-

Nine years ago, Ken Doyle, a senior partner at the Halifax Group private equity firm, and others from the private equity community in the Washington, D.C., area started the Capital for Children charitable organization. Their idea: To take the same approach with charitable giving as they did with private equity investing.

Doyle says Halifax treats charity donations “like a portfolio, in the sense of bringing all the tools that you would bring to a portfolio company,” and uses that knowledge when looking at nonprofits and charitable organizations. “We bring all the skill sets through our members that you’ll find out there to get a deal done,” he adds.

Capital for Children’s members–from PE firms, and law firms and accounting firms in the transactions world—join the boards of directors of the 12 non-profits that the group has donated to. Their due diligence and financial skills–helping with budgets, audits, cash management, talent recruiting, best practices sharing, capital projects and long-term strategic planning—contribute as much or more to the non-profits’ success as the money they give, Doyle says. Earlier in July, Capital for Children’s $147,500 in grants to nine youth development groups, putting their cumulative donations over the $1 million mark.

Read the full article here:

http://www.themiddlemarket.com/news/financial_sponsors/private-equity-firms-give-back-261217-1.html.