Key Takeaways
- • Emma Davies, former co-chief executive of Octopus Ventures, appointed as chief investment officer of Guy's and St Thomas' Foundation to manage a £1bn endowment, effective May 2023, replacing Ethan Hall who held the position since 2021.
- • The foundation's endowment grew 34% from £693m to £931m between 2017 and 2022, with over £130m deployed for charitable spending during this period, demonstrating significant capital expansion and philanthropic deployment.
- • The £1bn endowment delivered a 12.8% return in 2021/22, underperforming its 16.4% benchmark for that year but outperforming across the five-year measurement period, indicating consistent long-term performance despite annual variance.
- • Davies will oversee a dual-mandate strategy combining financial returns with health impact generation, including stewardship of a £100m impact investment portfolio launched by the foundation in 2022.
- • Davies brings venture capital expertise and prior senior civil society roles, including head of property at Wellcome Trust and founding chief investment officer at Big Society Capital, positioning her to bridge commercial and mission-driven investment strategies.
Summary
Guy's and St Thomas' Foundation has appointed Emma Davies as chief investment officer to lead management of its £1bn endowment. Davies, who previously served as co-chief executive of Octopus Ventures—a venture capital firm specializing in healthcare and environmental technology investments—will assume the role in May 2023, succeeding Ethan Hall.
The foundation's endowment has demonstrated substantial growth and charitable deployment over the past five years. Between 2017 and 2022, the asset base expanded from £693m to £931m, representing a 34% increase in nominal value. During this same period, the foundation released more than £130m from the endowment for charitable spending, including distributions to its sister organization, Guy's and St Thomas' NHS Foundation Trust. In fiscal year 2021/22, the endowment portfolio generated a 12.8% return, though this fell short of the 16.4% comparative benchmark for that specific year. However, performance across the full five-year period exceeded the benchmark, demonstrating consistent outperformance on a longer-term basis.
Davies' appointment reflects the foundation's commitment to a "dual mandate" approach that balances financial returns with health impact generation. The foundation articulated this strategy through the launch of a £100m impact investment portfolio in 2022, which Davies will now oversee. Her professional background spans both commercial venture capital and civil society sectors, having previously served as head of property at the Wellcome Trust and as founding chief investment officer at Big Society Capital, a social enterprise wholesaler. In her appointment statement, Davies emphasized the ambition of integrating financial performance with health outcomes, noting that the foundation is "leading the way for foundations and mainstream investors in showing how we can all contribute to building a healthier society."
The foundation's endowment has demonstrated substantial growth and charitable deployment over the past five years. Between 2017 and 2022, the asset base expanded from £693m to £931m, representing a 34% increase in nominal value. During this same period, the foundation released more than £130m from the endowment for charitable spending, including distributions to its sister organization, Guy's and St Thomas' NHS Foundation Trust. In fiscal year 2021/22, the endowment portfolio generated a 12.8% return, though this fell short of the 16.4% comparative benchmark for that specific year. However, performance across the full five-year period exceeded the benchmark, demonstrating consistent outperformance on a longer-term basis.
Davies' appointment reflects the foundation's commitment to a "dual mandate" approach that balances financial returns with health impact generation. The foundation articulated this strategy through the launch of a £100m impact investment portfolio in 2022, which Davies will now oversee. Her professional background spans both commercial venture capital and civil society sectors, having previously served as head of property at the Wellcome Trust and as founding chief investment officer at Big Society Capital, a social enterprise wholesaler. In her appointment statement, Davies emphasized the ambition of integrating financial performance with health outcomes, noting that the foundation is "leading the way for foundations and mainstream investors in showing how we can all contribute to building a healthier society."
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