Insider Q&A: Serving the neglected for profit, not just good

NEW YORK (AP) — Making money by helping underserved communities? It took Bobby Turner years to convince big investment funds such a thing was possible.

But today, sustainable investing is so hot on Wall Street that investors are rushing into funds that consider the environment, social issues and corporate governance in their strategies. It's been such a sea change that Turner now warns about charlatans in the business touting big promises but little expertise or rigor.

After partnering with basketball legend Earvin “Magic” Johnson around the turn of the millennium, Turner raised $300 million to build movie theaters, coffee shops and other real estate in Los Angeles and other urban areas. Since launching Turner Impact Capital in 2014, Turner has raised about $1.5 billion to build charter schools, medical centers and housing for low- and moderate-income households.

Turner spoke recently with The Associated Press about his goal of marrying “profits with purpose” and why he continues to partner with big names, such as tennis' Andre Agassi, Hollywood's Eva Longoria and basketball's Chris Paul. The conversation has been edited for clarity and length.

Q: When did you start trying to marry profits with purpose in your investment career?

A: When I graduated from Wharton, I thought that with the creation of wealth would come happiness, and it didn’t happen for me. I became a philanthropist, but I really struggled there because the organizations that my wife and I were giving money to were just really putting Band-Aids on issues.

In my mid 30s, I thought that if you want to create durable, sustainable changes, then you had to harness market forces. Doing good and doing well needn’t be exclusive. Using business as a force for good is not bad. I think a lot of people think it...