Social Capital

01Approach

How it works.

One loop, funded entirely from our own balance sheet.

1. Operate

We build and run companies that do real work and produce real cash. Today that is Midsommer Health in healthcare, and a stealth company applying machine learning to energy.

2. Invest

Once those companies and their people are taken care of, the cash they produce comes up to Social Capital and funds our proprietary investments, run on systematic strategies we build ourselves.

3. Endow

Returns pay our people well and fund a healthcare endowment held by the Social Capital Foundation. That endowment is the point of the whole structure.

Each business stands on its own, with its own team and its own books. What connects them is a shared standard, a long time horizon, and a single destination for what they earn.

02About

Who we are.

Social Capital started with the Social Capital Foundation. The foundation was Spencer R. Potesta’s idea first: a healthcare endowment built to keep giving for decades. Social Capital came next, co-founded by Spencer and Darryl Moore as the engine to fund it, and built to hold clinical practice, organizational psychology, finance, and machine learning under one roof.

How a firm raises money determines what the firm becomes. Outside capital arrives with a clock attached. The clock sets the time horizon, the time horizon sets the ethics, and the ethics eventually set the org chart. Every decision inside every company bends toward that schedule whether or not it is right for the business or the people in it.

We would rather own the clock. Investing only our own capital means we can hold a company for as long as holding it is the correct answer, pay people properly before it is convenient, and make decisions that look expensive this year and obvious in ten.

It also means the firm can point its returns somewhere other than a shareholder. Social Capital exists to take care of the people who work here and to fund a healthcare endowment held by the Social Capital Foundation, a separate 501(c)(3) described further down. We do not think this costs us growth. We think it is the condition for it.

Time horizon

No fund life, no deployment window, no forced exit. Nothing in our structure requires us to sell something we would rather keep.

Ethics

There is no outside return to defend. The right call and the fundable call are the same call, which removes the pressure that quietly corrupts good operators.

Structure

Each organization is built for the work in front of it, not for a reporting requirement designed around someone else's quarter.

Leadership

Spencer R. Potesta Co-Founder and Chief Executive Officer

Spencer founded the Social Capital Foundation and co-founded Social Capital to fund it. He is also co-founder and CEO of Midsommer Health. A double board-certified psychotherapist, he still treats OCD, anxiety, and trauma, holds master’s degrees in clinical psychology and industrial/organizational psychology, and is the author of Principles of Performance and Control.

Earlier in his career he consulted for Fortune 100 organizations including HCA Healthcare, Panasonic, and Tesla. He is completing an MS in Finance at Baruch College and a PhD in Systems Engineering. He sees psychology and machine learning as two tools for the same work: creating change for people and organizations.

Darryl Moore Co-Founder and Chief Financial Officer

Darryl brings more than a decade of experience in accounting, auditing, global asset management, and financial strategy. Before co-founding Social Capital with Spencer, he worked across financial services and investment management, where he executed billions of dollars in investment transactions, supported complex trading strategies, and ensured accurate implementation across institutional portfolios.

He began his career in financial accounting and auditing for organizations spanning securities trading, commodities brokerage, manufacturing, and global advertising. Today he oversees financial strategy, accounting, and capital allocation across our companies, including Midsommer Health, where he serves as CFO.

03Companies

Companies we own and operate.

Midsommer Health

Active · Healthcare

A clinician-led healthcare company. Midsommer is an MSO and consultancy for healthcare and behavioral health practices, with a network of partner practices spanning therapy and psychiatry across multiple states. It is our pride and joy, and the clearest example of how we build.

The standard private equity and venture playbook in this sector takes a fee, compresses cost, and sells. Midsommer is funded entirely with internal capital, so there is no fee clock and no exit clock. Clinicians are paid at the top of the market, management fees stay near zero until a practice can comfortably carry them, and clinical decisions stay with clinicians. We measure the company on how many people it reaches and how well it treats the people who work inside it.

Midsommer is fully bootstrapped, and once its practices and people are taken care of, what it earns flows up to Social Capital and into our proprietary investments.

midsommer.org

Energy and industrial machine learning

In stealth

All of our machine learning work for energy lives in a single company we have not named publicly yet. It builds physics-constrained models that optimize power and thermal load in industrial facilities, terrestrial data centers, and compute designed to operate in orbit.

We would rather be judged on the work than on the announcement. The work itself is described below.

04Energy

The stealth company. Machine learning for energy.

Compute-heavy facilities spend most of their power on thermal load and idle capacity, and the physics governing that is knowable. Our stealth company builds models that treat conservation laws, thermal limits, and hardware failure modes as hard boundaries the model is not allowed to violate, then optimizes energy usage inside them. A model that can suggest an impossible operating point is not useful to anyone running real equipment.

The company works in three settings: industrial facilities, terrestrial data centers, and compute designed to operate in orbit, where the power and cooling budget is effectively the whole design problem.

Physics-constrained optimizationThermal limits, conservation laws, and failure modes enter the model as hard boundaries rather than penalties that can be traded away.
Data centers, terrestrial and orbitalEnergy, thermal, and load optimization for compute-heavy facilities on the ground and for systems designed to run in orbit.
Industrial energy systemsProcess, load, and power optimization inside industrial plants, at multiple scales of the same system.

Licensing and collaboration

The company licenses its models selectively. It is not raising capital, but working with operators is a different conversation and we are open to it.

Build

Models built against your systems, your constraints, and your instrumentation.

Advise

Working alongside your team on approach, architecture, and how to validate what comes out.

Deploy

Plugging into a compute-heavy operation already running at scale and optimizing against live load.

Reach out

05Investments

Proprietary investments. Our cash, our models.

Our proprietary investments are funded by the companies we own, not by outside investors. When one of our companies produces more than it needs, that cash comes up to Social Capital and goes to work here.

We run quantitative, systematic, and algorithmic strategies that we build ourselves, from signal research through backtesting, risk, and execution. These models exist for our own capital only. We do not license them, manage money for others, or accept outside investment.

Because the capital is ours and permanent, we can size for the long run rather than for a reporting period, and every dollar of return has a destination we chose in advance.

StrategiesQuantitative, systematic, and algorithmic strategies built end to end in house.
Source of capitalCash flow from our operating companies. Never outside capital.
Where returns goOur people, and the healthcare endowment held by the Social Capital Foundation.

06Mandate

What it is all for.

We are building an institution meant to outlast any single company inside it, and to be worth working at for an entire career rather than a cycle.

That comes down to two commitments. The first is to the people here: compensation, benefits, and enough runway to do work that takes years to come good. The second, and the ultimate goal of the firm, is a healthcare endowment built to keep giving long after any of us are running it.

Every part of the structure points there. Our companies generate the cash, our investments compound it, and the endowment puts it to work in healthcare. The endowment sits with the Social Capital Foundation, a 501(c)(3) with no corporate relationship to Social Capital. It is governed separately, and we are a source of its funding rather than an owner of it.

We would rather be measured in decades than in quarters, and in people reached than in dollars raised.

socialcapitalfoundation.com

07Contact

Talk to us.

We are always open to conversations with operators, researchers, clinicians, and organizations interested in working with our energy company. We are not raising capital and do not accept outside investment.

Thank you. Your message is in, and someone will come back to you directly.

A proprietary investment and research company.