Impact investment sourcing and due diligence
Introduction
How to use these resources
Resources in this module
Glossary of terms
We have put together a glossary of terms for impact investing
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Screening and suitability – how to identify true impact investing opportunities (spot “green washing”), source them and assess their suitability
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How to evaluate impact investing fund managers
World Economic Forum
Reading time: 40 minutes
WEF proposes an alternative approach to adopt when evaluating impact managers in light of the evolution as opposed to the ‘traditional’ approach of due diligence focused on the fund manager’s track record The alternative approach put forward by WEF centres around asking critical questions about how: People: How are decisions made and by whom?; Mission: How does the fund manager combine impact and finance? ; Business model: How does the fund finance its operations?; and Practised governance: How is the fund organization actually governed?
What the reviewer found helpful:“The analysis under each element of the proposed alternative approach”
Kate Munuka
Introductory
Due diligence mechanisms and challenges
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Guide for Impact Investing Fund Managers: Conducting due diligence
Global Impact Investing Network
Reading time: 7 minutes
Discusses the importance of a standardised due diligence process and why it is helpful. Suggestions for key questions an investor should ask to help manage risk.
What the reviewer found helpful:“Notes the value of an impact committee to ensure impact risk is considered in depth.”
Chris Cullen
Introductory