The Coordinating Impact Capital report by the Center for Science, Technology, and Society encompasses over 10 months of surveys and analysis with more than 45 investment organizations currently working in the field of impact investing. The intent of this project was to unearth actionable suggestions for the social impact community, and identify market mechanisms that can increase the efficiency of invested capital, resulting in greater liquidity opportunities for investors. The project was generously supported by the Aspen Network of Development Entrepreneurs. The lead authors and guest experts will discuss the landscape of impact investing and a foundation for vetting future social impact investment opportunities.
23. Direction of Capital Capital Sources Capital Sources Geography Mission Intermediary Funding Organization Size of Funding Type of Capital Desired Liquidity Type of SGB SGB Organizational Objectives Desired Outcome Reporting Requirement Expected Time Frame Investment Outcomes Target 6
31. When asked, the vast majority of respondents do not measure target income levels of their markets10
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34. The majority of respondents believed they were best situated to select SGBs when they were operating “in country.” This implies that an arms-length relationship with SGBs reduces return expectations relative to a direct investment relationship12
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36. “We do not know who they are in the areas where we operate”
38. Many organizations provide their own capacity development services (business mentoring, operational management and consulting as part of their investment)
39. Redefine who CDOs are: Local business leaders, corporations, advisors and consulting firms13
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42. 75% are now expecting 5 - 10+ year holding period
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44. 18 Phased Investing Hypothesis Phased Investing (baton pass) – Different impact investors contributing capital at each phase of the SGBs’ development cycle. Examples of this may include: Grant (capacity building) Soft loan (proof of concept) Quasi equity / equity investment (scale the business) Debt provider (long-term, commercial loan—scale the business Co-Investing—Multiple investors pooling capital to make one type of investment. Internal Syndication—An organization participates in multiple phases of the same small and growing business investment cycle; i.e., providing capital in the form of a grant that is later followed by an additional investment in the form of debt or equity.
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46. Phased investing is a much more efficient type of syndication and is not happening19
54. Work on market mechanisms that earn greater investor confidenceDiligence and validation Mentoring and capacity development Metrics that matter Financial and regulatory consistency
55. Researchers Sol Tran Jared Abercrombie Krishnan Manjeri Contributing Editors Greg Dalli Rachel Haley Project Lead Jessica Sawhney
56. Panel discussion Susie Lee Principal, TBL Capital Sean Foote Management Team, Labrador Ventures Taryn Goodman Senior Manager, Impact Investing, RSF Social Finance
59. Download online Full Report Available Online www.scu.edu/socialbenefit/socialcapital.cfm
Editor's Notes
CALL CDOs
Justina plays in the PRI space. A lot of thinking going on these issues. RF is winding down the impact investing phase of their support but are looking at collaboration between supply side and demand side.