Post on 23-Jun-2015
description
A Finance Matters Workshop
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Understand the fundamentals of impact investing Get an overview of London’s impact ecosystem See what skills and attitudes will help you succeed Learn the tools practitioners use to make investment decisions Meet like-minded people to help you on your journey
What are you looking for as an impact investor? Which in investment seems most attractive and why? What else do you need to know? •
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Discuss in groups of 4-5
Impact investments are investments made into companies, organizations, and funds with the intention to generate social and environmental impact alongside a financial return.
Global Impact Investing Network (GIIN)
companies, organizations, and
funds
intention
impact alongside
return
Adapted from Bridges Ventures
Impact Investment
Traditional Responsible Responsible 2.0 Thematic / Sustainable Impact-first Philanthropy
Finance-only The New Paradigm Impact-only Financial objective
Impact objective
Focus on social and
environmental issues
Limited or none Passive risk management
Active attention on issues as value-drivers
Sole focus on issues creating
commercial opportunities
with competitive return potential
Specialist in issues that may
require risk/return trade-off
Sole focus on issues requiring 100% financial
trade-off
measurable objectives
Company activities •
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£ Company activities
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Capital Structure•
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£ Company activities
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Market Building •
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Capital Structure•
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additionality
measurement additionality
companies, organizations, and
funds impact alongside
return intention
How did the investments stack up?
objective
(1) BCG (2) GSIA (3) JPM (4) IMA (5) Thomson Reuters/UKSIF (6) Big Society Capital
global UK
(1) BCG (2) GSIA (3) JPM (4) IMA (5) Thomson Reuters/UKSIF (6) Big Society Capital
global UK
supply demand
supply demand intermediaries
Where do you fall on the return/impact spectrum?
What impact do you want to have?
Discuss with your neighbours
finance
£
finance impact
£
finance self impact
£
Fund: deal team •
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Fund: operations •
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Intermediary / Advisory •
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Fund: deal team •
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Fund: operations •
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Intermediary / Advisory •
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Alignment
+ - Return = impact = investor preference
Business success factors ≠ impact success factors
Investment structure
Management approach
Outcomes and return
profile
communication
understand your customers •
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communication
understand your customers •
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communication explain the financing
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understand your customers •
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communication explain the financing
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measurement
understand your customers •
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communication explain the financing
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measurement frameworks and tools
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•𝑆𝑜𝑐𝑖𝑎𝑙 𝐵𝑒𝑛𝑒𝑓𝑖𝑡
𝑃𝑟𝑜𝑑𝑢𝑐𝑡𝑖𝑜𝑛 𝐶𝑜𝑠𝑡𝑠
understand your customers •
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standardized measures •
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communication explain the financing
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measurement frameworks and tools
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•𝑆𝑜𝑐𝑖𝑎𝑙 𝐵𝑒𝑛𝑒𝑓𝑖𝑡
𝑃𝑟𝑜𝑑𝑢𝑐𝑡𝑖𝑜𝑛 𝐶𝑜𝑠𝑡𝑠
understand your customers •
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•
standardized measures •
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•
communication explain the financing
•
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•
measurement frameworks and tools
•
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•𝑆𝑜𝑐𝑖𝑎𝑙 𝐵𝑒𝑛𝑒𝑓𝑖𝑡
𝑃𝑟𝑜𝑑𝑢𝑐𝑡𝑖𝑜𝑛 𝐶𝑜𝑠𝑡𝑠
Adapted from the EBRD and Bridges Ventures
Input Outputs Outcomes Impact Activities
Adapted from the EBRD and Bridges Ventures
Input Outputs Outcomes Impact
Mission
Activities
Adapted from the EBRD and Bridges Ventures
Input Outputs Outcomes Impact
Mission
Improve health of inner-city adults
Activities
Adapted from the EBRD and Bridges Ventures
Input Outputs Outcomes Impact
Objective Mission
Improve health of inner-city adults
Activities
Adapted from the EBRD and Bridges Ventures
Input Outputs Outcomes Impact
Objective Mission
60,000 inner-city adults join a gym for the first time
Improve health of inner-city adults
Activities
Adapted from the EBRD and Bridges Ventures
Input Outputs Outcomes Impact
How you change the status quo
Objective Mission
60,000 inner-city adults join a gym for the first time
Improve health of inner-city adults
Activities
Adapted from the EBRD and Bridges Ventures
Input Outputs Outcomes Impact
How you change the status quo
Objective Mission
48 gyms In underserved areas More energy efficient
60,000 inner-city adults join a gym for the first time
Improve health of inner-city adults
Activities
Adapted from the EBRD and Bridges Ventures
Input Outputs Outcomes Impact
What you do
How you change the status quo
Objective Mission
48 gyms In underserved areas More energy efficient
60,000 inner-city adults join a gym for the first time
Improve health of inner-city adults
Activities
Adapted from the EBRD and Bridges Ventures
Input Outputs Outcomes Impact
What you do
How you change the status quo
Objective Mission
Build and operate a network of affordable 24/7 gyms in underserved areas in the UK
48 gyms In underserved areas More energy efficient
60,000 inner-city adults join a gym for the first time
Improve health of inner-city adults
Activities
Adapted from the EBRD and Bridges Ventures
Input Outputs Outcomes Impact
What you need
What you do
How you change the status quo
Objective Mission
Build and operate a network of affordable 24/7 gyms in underserved areas in the UK
48 gyms In underserved areas More energy efficient
60,000 inner-city adults join a gym for the first time
Improve health of inner-city adults
Activities
Adapted from the EBRD and Bridges Ventures
Input Outputs Outcomes Impact
What you need
What you do
How you change the status quo
Objective Mission
Real estate Equipment Human capital …..
Build and operate a network of affordable 24/7 gyms in underserved areas in the UK
48 gyms In underserved areas More energy efficient
60,000 inner-city adults join a gym for the first time
Improve health of inner-city adults
Activities
Values •
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Empathy •
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Resilience •
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Read Do
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