Impact investments are investments made into companies, organizations, and funds that are intended to address social and/or environmental challenges while simultaneously producing financial returns. The expected financial return can range from below market-rate (concessionary) to above market-rate (impact alpha). The social and environmental impact can range across industries, geographies, and encompass the full range of challenges facing humanity. Examples include investments in companies focused on clean energy, affordable housing and the betterment of low-income or underserved populations.
Source and identify investment opportunities, conduct initial market, financial and management diligence, determine the preliminary valuation of a company
Gain a deeper understanding of a company, confirm its commercial and impact-driven assumptions, identify risks to be addressed in documentation
Negotiate investment documents that protect risks, identify responsibilities, implement investor rights and protections, and instill accountability into the transaction
Set performance targets to achieve investment goals using standardized metrics. Manage the performance of investees against investment targets, and report social performance to stakeholders