My Cup of Tea, Carlotta Saporito

Carlotta Saporito
Head of Impact Investing
Private Investments Due Diligence Team
J.P. Morgan Private Bank

Carlotta, welcome! As per previous interviews in this series, I’ll begin by asking your afternoon tea preference.

It’s coffee, if I have a choice. If there are scones with jam and clotted cream, I’ll have herbal tea!

You’re currently our Head of Impact Investing. What motivated you to work in this particular sector?

I always knew that I wanted to contribute solutions to complex global challenges, so I started my career at what I thought was the obvious place to do that – the World Bank. I worked in a variety of projects, including with the International Finance Corporation and the International Monetary Fund. I was consistently exposed to government ministries and central banks, which I found fascinating, but very slow. Eventually, I decided to branch out into other areas of development finance.

I joined the Young Professionals Programme – an initiative ran in multilateral development finance institutions – at the African Development Bank. I was part of what was then a nascent private equity department. Ultimately, impact is a capital allocation question, and the concept of linking financial incentives to positive outcomes resonated very strongly with me, both in terms of its strength and clarity. Since then, I’ve never looked back!

Impact investing means many different things to different people, and as a result, a lot of misinformation persists. Can you bust a myth about the process?

I’ll bust two. Firstly, there seems to be a lot of confusion around impact investing, and what it actually means. At J.P. Morgan, it’s clear-cut. We seek to deliver market-rate returns alongside positive outcomes.

Second, a lot of people seem to think that impact investing is about imposing morality – it isn’t. The world’s biggest challenges – climate, healthcare, access to financial services, education – translate into great business opportunities that everyone can get behind.

What types of projects or businesses are typically funded through impact investing?

They span sectors and asset classes, but the common theme is that they deliver solutions that address societal or environmental challenges – from early-stage companies working on long-term energy storage, to established businesses improving the delivery of critical care in underserved hospitals.

How do you pursue financial returns while maintaining social/environmental impact?

As we define it, this type of investing needs to make sense both financially, and from an impact perspective. Naturally, by doing so, a higher bar is set for capital to be deployed. But the opportunities are enormous, so we don’t view this as limiting.

What advice would you give to someone looking to start a career in impact finance?

Focus on building core investment skills, first and foremost.

What are your biggest hopes and fears when it comes to impact investing?

My hope is that we move beyond labels. I’d like to see an analysis of all investment outcomes become embedded across all investment processes, along with a pricing of externalities. On the other hand, my fear is that continued confusion around definitions and high barriers to entry – including the increasing cost of complying with regulation – will prevent more capital from entering the industry.

Has becoming a parent changed the way you think about the world, or your personal finances?

Yes! I no longer have a concept of ‘personal finances.’ Everything I do is for my children. I do trade from time to time, but mostly hold for the long term in companies that I think have strong fundamentals. My view of the world evolves constantly, and my children definitely inform that perspective.

Finally, can you tell me something about yourself that I wouldn’t find on your CV or LinkedIn?

I’m originally from a small town in Sicily. I left home on a scholarship at the age of 16, and ever since, I’ve lived in 11 cities and travelled – often solo – around the world. I once had a life-threatening accident in a remote region of northern Mozambique. After managing to tourniquet myself, I was taken to hospital by a Dwayne Johnson lookalike, then evacuated to South Africa for surgery!