Coming from the non-profit sector, Katharina embarked on an MBA to provide sustainable support for donation-based organizations. We’ll see how her academic journey and the pivotal role of the IESE Impact Fund turned Katharina into a fully-fledged Impact Investor and Business Angel.
Katharina Klohe received her MBA at the Instituto de Estudios Superiores de la Empresa (IESE), the business school of the University of Navarra. IESE’s main campus is in Barcelona, Spain, but it has additional campuses in Madrid, Munich, New York City, and São Paulo.
Before going for her MBA, Katharina took an intense educational pathway. She started off with an undergraduate degree in Psychology and then pursued a Master’s in International Studies and Diplomacy, with a focus on International Economics. After beginning a career, Katharina returned to academia to pursue another Master’s degree in International Health Policy. With the final addition of the IESE MBA in her pocket, Katharina describes her educational journey as “collecting my master’s degrees”. (00:40)
On the professional side, Katharina focused on global health in the not-for-profit sector, looking at neglected tropical diseases in sub-Saharan Africa. She worked for five years as a freelance global health consultant. During this time, she established the Center for Global Health at the Technical University of Munich.
Sadly, the not-for-profit sector has its drawbacks. Heavily reliant on donations, non-profits struggle to bring their inspiring goals to fruition. Katharina wanted to try a more sustainable approach to social development, one that could leverage the power of finance to create a lasting impact.
Katharina enjoyed all of the degrees earned prior to her MBA. But none gave her the business understanding she needed. “I thought if I do an MBA and I gain the understanding of business and financial questions, I can pivot my career and actually address the questions I’ve been working on before in the finance sector, let’s say sustainable finance or impact investing. And therefore have a more sustainable lasting change.” (01:38)
MBAs are an effective way of transitioning from one career focus to another, which is exactly what Katharina was looking for. The generalist nature of MBA programs offers a wide range of career avenues to explore. However, some schools promote a particular focus on a specific area.
At IESE, rather than having a specific course on sustainability, every course is intertwined with elements of sustainable finance and impact investing. Katharina says that “the idea of sustainability runs through IESE.” (02:14)
Another beneficial part of IESE’s approach is its emphasis on practical application. With case methods as a cornerstone of IESE’s teaching methodology, students think practically and apply concepts to real-world sustainability scenarios.
Katharina found this approach particularly beneficial. “You’re not just sitting in the classroom listening, but you need to apply what you’re learning through real cases to real problems.” (4:24) In her ESG class, for instance, students were tasked with setting up their own ESG funds. That required them to think strategically and navigate real-world data sources.
Encouraging a practical approach extends beyond the classroom at IESE. Students engage with the business community, participate in competitions, and work with faculty on research.
“I was able to support one professor in writing a book,” Katharina shares. “I’m currently writing a technical node with another professor because I enjoy these kinds of academic activities too.” (13:57)
These experiences, coupled with the robust academic offerings, equipped Katharina with a nuanced understanding of the field. But more than that, they complimented another crucial part of her journey: the IESE Impact Fund.
The IESE Impact Fund spearheads IESE’s commitment to sustainable finance and impact investing. Founded and run by MBA students, it offers a unique, hands-on experience in managing a real impact fund. It was established for three core reasons:
As Katharina summarizes, “The IESE Impact Fund focuses on sustainability and financial inclusion. So that would be the investment strategy and the focus of any investments that they carry out.” (05:27)
This aligns perfectly with Katharina’s initial motivation for studying for an MBA. Spotting an opportunity, Katharina became deeply involved with the fund during her time at IESE.
But the fund’s activities go beyond just investing. It also runs the Impact Investing Competition, which Katharina organized in her first year. The competition is a unique event that brings together MBA students from across Europe and Shanghai. Guided by experts in the field, it is a platform for students to engage with impact ventures, conduct due diligence, and negotiate deals.
In her second year, Katharina took on the role of co-president of the IESE Impact Fund. During her tenure, she spearheaded a rebranding initiative, organized a fundraising event, and secured a five-year partnership with a prestigious private equity firm in Madrid. Katharina’s work with the fund enriched her MBA and gave her first-hand experience that she could apply to her career.
By becoming an Impact Investor and Business Angel, Katharina entered an exciting area that cuts ties with traditional financial investing. The rise of impact investing is a response to global challenges such as climate change and social inequalities. Investors are increasingly incorporating non-financial factors into their investment process, aiming to have a positive impact on society.
But clearly, impact investment wouldn’t survive if it didn’t make financial sense. Therefore, it’s not just about doing good, it’s also about risk management and long-term value creation.
Investors in the impact investment arena seem to be doing something right. According to a study by the Business Research Company, the global impact investing market grew from $420.91 billion in 2022 to $495.82 billion in 2023. This growth is a testament to the potential for investments to drive social and environmental change while delivering financial returns. The growth of impact investing is expected to continue, with the market projected to reach $955.95 billion by 2027.
In recent years, big hitters from the private equity landscape have announced their intentions to move into impact investing. Although there have been accusations of “impact washing,” cynically using impact investment as a marketing tool, there is plenty of reasons to be hopeful.
Many of the new players, such as KKR, Apollo and TPG, have signed the Operating Principles for Impact Management. Launched in 2019, signatories pledge to “bring greater transparency, credibility, and discipline to the impact investing market.”
As impact investing establishes itself in the mainstream, more and more opportunities will arise for ambitious graduates like Katharina.
Katharina is currently working in Latin America, seeking impact investment opportunities for companies in Germany. Now an established international investor, Katharina credits IESE as the perfect place to begin her journey in impact investment.
Highlighting her multifaceted experience, she says, “There are classes that prepare you. There is the opportunity to engage in different competitions. There are experts you can talk to.” (13:24)
If you want to follow in Katharina’s footsteps or learn more about the IESE MBA program, contact her or other IESE students and alumni directly via the MBAGRADSCHOOLS IESE Business School Ambassadors page.
