Balancing social impact with attractive investor returns

The annual Kellogg-Morgan Stanley Sustainable Investing Challenge invites teams of graduate students from around the world to develop and pitch creative financial approaches to tackle pressing social and environmental challenges. 

We spoke with this year’s Kellogg finalists, Two-Year MBA Program students Andrew Grosse ’25, Andrew Meisenbacher ’25, David Clark Guillermo ’25 and Curtis Stokes ’25. Here, they discuss their innovative approach to promoting economic mobility in developing economies through employee ownership structures and how they leveraged their diverse expertise in private equity, corporate development, financial analysis and management consulting to help fuel their pitch. 

Kellogg: Can you share background on your journey leading up to the competition? How did you and your team decide on the project you presented? 

Andrew Grosse: We knew employee ownership structures were becoming increasingly popular in the U.S. and wanted to find a way to use similar mechanisms to promote economic mobility in developing economies. Employee Stock Ownership Plan (ESOP) buyouts stood out as one of the most compelling ways to distribute wealth equitably.  

We took a step back to consider which markets had both significant economic disparity and favorable economic conditions to support similar structures and landed on Mexico for two reasons: its large manufacturing sector is expected to grow significantly as a result of U.S. nearshoring activity, and its investment and trade dynamics with the U.S. are favorable. 

Kellogg: How has your MBA experience influenced your career in the sustainability space? 

Grosse: My MBA experience at Kellogg has significantly shaped my understanding of sustainability and its integration into various business roles. While I may not be pursuing a career exclusively focused on sustainability, the school’s strong commitment to sustainable practices has taught me the importance of incorporating sustainability into any business function.

This realization has empowered me to consider how I can contribute to sustainability, regardless of the industry or role I choose. It has instilled in me a responsibility to advocate for and implement sustainable practices in any future position I hold, ultimately enriching my professional endeavors with a focus on long-term value and ethical consideration. 

Kellogg: In a competition like this, teamwork and collaboration are crucial. How did the team navigate different perspectives and areas of expertise to develop a cohesive and innovative solution? 

Curtis Stokes: We were lucky that our team had complementary areas of expertise and folks were vocal about what their strengths and weaknesses were. The four of us had backgrounds in private equity, corporate development, financial analysis and management consulting — this gave us good coverage on the core pieces of the competition.  

Our working style was similar to Amazon’s principle of “disagree and commit.” We had strong opinions and robust disagreements throughout the process, but once we made a decision, we stuck to it.  

Kellogg: Sustainability is a complex and multifaceted issue. What were some of the biggest challenges you faced in crafting your proposal, and how did you overcome them? 

Andrew Meisenbacher: One of the biggest challenges we faced in crafting our proposal was thinking through designing a product that could both “do well and do good.” Meaning, it would allow investors to have a positive impact on a social issue but also achieve an attractive rate of return.  

We tried to tackle this challenge by drafting a proposal that aligned the incentives of everyone involved. In this case, our fund would give owners a full liquidity event, give employees a path to equity in their firm and give outside investors exposure to solid Mexican manufacturing businesses with a history of reliable cash flows.  

Kellogg: As business leaders, how do you envision integrating sustainability into your careers beyond this competition? 

Stokes: This is a great question and something that Kellogg has gotten me to think about more critically. I’m in a class with Professor Meghan Busse called What Every MBA Needs to Know About Climate Change that’s really emphasizing the need for business leaders to take a role in climate change mitigation in their careers.  

I think a major part of it is a change in mindset to consider climate and sustainability-oriented impacts in business decisions. Questions like “what vendors to use?” and “what supply chain processes to stand up?” will require a sustainability-focused mindset to answer responsibly.  

Kellogg: The challenge encourages innovative and creative investment solutions for positive social and environmental impact. Were there any insights or "aha" moments during the process of developing your proposal? 

Meisenbacher: I think one of the biggest insights we took away from this competition was just how massive this problem — and the potential opportunity — is. We focused on improving the income inequality faced by Mexican manufacturing workers by gradually transferring ownership of the firms they work for to the actual workers — which we estimated to be a $540 billion opportunity impacting almost six million employees.  

This issue is not necessarily unique to Mexico, but rather it is something faced by lower-wage workers throughout Central and South America, Africa, Asia and beyond. Realizing that ESOPs can potentially such a broad swath of the world’s workforce was a huge “aha” moment for us. 

Kellogg: What was the most memorable or surprising moment during the competition? 

Meisenbacher: The competition provided many memorable moments for our team, but I think watching the other teams present their ideas was most memorable and inspiring for us. The other teams had amazing ideas ranging from unique asset-backed securities to a fund designed to save the Great Salt Lake in Utah.  

Listening to and learning from other teams who were clearly very dedicated to solving some thorny real-world problems related to sustainability and equity was such a cool opportunity. Seeing how many MBA students want to help make this world a better place was heartening. 

Kellogg: We’re known for our emphasis on experiential learning. How did the hands-on experience of participating in this competition complement your classroom education? 

Grosse: Participating in the KMSSIC is a prime example of how the school’s focus on experiential learning bridges the gap between classroom education and real-world application. This competition allowed us to apply theoretical knowledge from finance and sustainability courses in a practical, real-world environment.  

Working on a project that required innovative investment solutions to address a societal challenge helped solidify our understanding of financial mechanisms and their impact on social issues. It also helped to further develop soft skills in teamwork, problem-solving and strategic thinking which are crucial for effective leadership but are often difficult to fully cultivate through lectures alone. 


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