Develop a strategy for impact
A growing number of investors are seeking ‘additionality’ from their investments.
While most of the teams we work with pursue investment strategies that are inherently impactful, oftentimes they neglect the role that a credible, rigorous impact framework can play in expanding their funnel of prospective LPs.
Portico works with fund managers to develop customized impact frameworks and measurement methodologies that map investment themes to impact outcomes.
At Portico, we believe the relatively nascent stage of impact investing and accounting inhibits the use of off-the-shelf frameworks. Therefore, at the outset of each engagement, our first objective is to attain a deep understanding of our client’s investment strategy and market opportunity.
Our process includes:
- Identifying the client’s philosophical foundations and / or mission that can underpin an impact framework.
- Surveying the (bewildering) array of impact guidelines and standards (e.g., GIIN, SASB, UN SDGs) to isolate an appropriate framework for the client.
- Developing a bespoke set of impact themes and underlying metrics.
- Creating customized online surveys that enable clients to:
(i) collect baseline data measuring the firm’s level of impact;
(ii) track progress toward impact objectives in aggregate over time; and,
(iii) identify specific areas for improvement for portfolio companies.
- Producing annual impact reports to share with investors and broader stakeholders.