Jeffrey Ubben, co-founder of ValueAct Capital, retired as chairman to launch Inclusive Capital Partners, the company said in a news release.
He will assume the role of chairman emeritus at ValueAct; the company has not yet disclosed who will replace him as chairman.
"We started ValueAct Capital 20 years ago with an untested investment strategy — that a minority investor in the public markets could positively impact a company's trajectory from inside the company board room," Mr. Ubben said in the release. "All these many years later, it's the right time to depart."
Mr. Ubben departure is part of the firm's succession plan. ValueAct Capital co-founder Mason Morfit will remain president, CEO and chief investment officer. The investment team for the company's flagship fund will remain in place.
"I am happy to announce the formation of Inclusive Capital Partners," Mr. Ubben added. "It is the next iteration of my investing career — scaling another untested strategy — that working with management teams and boards with the courage to lead on solutions to climate change and social inequity can generate massive shareholder value."
After moving to Inclusive Capital Partners, Mr. Ubben will continue managing the ValueAct Spring Fund, an ESG-focused fund launched in 2018.
Inclusive Capital Partners is also being co-founded by fellow ValueAct Capital co-founder George F. Hamel Jr., Coalition for Inclusive Capitalism founder and CEO Lynn Forester de Rothschild and ValueAct Spring Fund Managing Director Eva Zlotnicka.
Separately, Affiliated Managers Group, of which ValueAct Capital is an affiliate, said it will be a minority equity partner to Inclusive Capital Partners, according to a news release.
In addition to forming Inclusive Capital Partners, Mr. Ubben is also launching the Inclusive Capital Partners Foundation, a mission-driven philanthropic organization "focused on advancing economic, social and environmental inclusion," according to the ValueAct release.
A ValueAct spokesman declined to comment beyond what was in the release.