My guest today is Eric Rice – back for his second appearance on the podcast.

When we first spoke, he was running one of the only public equity funds in the impact space available to retail investors. Now, that fund has been shut down, the capital returned, and Eric has moved to private equity – specifically, to SEAF, an investor in emerging market SMEs.

This time, we talked about what happened, why it happened, and what it says about the current state of impact.

Eric’s core thesis hasn’t changed. The theory of change he developed at Wellington and BlackRock was simple: invest in companies doing socially useful work – even if they don’t realize it yet – and help them grow into that identity.

This was never ESG, and Eric is clear on the difference. ESG, he says, is about how a company operates. Impact is about what it does. “We weren’t ESG investors by any means. We were thematic investors – we only invested in companies solving social or environmental problems.”

That distinction got lost. Once the political backlash against ESG took hold, especially in the U.S., nuance didn’t matter.

Texas and a group of red states targeted a handful of BlackRock funds they deemed “too woke” to qualify for state investment. Among the six funds flagged, three were ones Eric had led. The result was that legitimate impact strategies became collateral damage in a culture war that had little to do with what those funds were actually doing.

As Eric puts it, they were “a different animal from the beginning”, but their message got hijacked.

After that, the pivot to private markets wasn’t just strategic – it was necessary.

At SEAF (Small Enterprise Assistance Funds), Eric is focused on small enterprises in emerging Europe, particularly in agriculture and food. Why? Because productivity in that sector is 40% of Western Europe’s – and no one has modernized it.

Eric and I talked about the limits of measurement frameworks, the role of trust in evaluating managers, and why so many funds labeled “impact” aren’t actually doing anything different.

This conversation is about what happens when a theory of change collides with political reality. It’s about staying true to the work in an industry that often prioritizes marketing. And it’s about the shift from public markets to private ones – not because it’s easier, but because it offers more clarity, more control, and maybe even more impact.

Listen to the full story.

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Additional Resources:

🔹 SEAF website

🔹 SEAF LinkedIn

🔹 Eric Rice LinkedIn

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Previous SRI360 interviews mentioned:

💎 Eric Rice: Ep 09

💎 Maya Chorengel: Ep 50

💎 Rochus Mommartz: Ep 57 & Ep 58

💎 Sir Ronald Cohen: Ep 73

💎 Hadewych Kuiper: Ep 83

💎 Michele Giddens: Ep 85