A report published by the Global Impact Investing Network (GIIN) reveals a range of available strategies used by investors to strengthen their ability to exit in a way that meets liquidity objectives while also ensuring sustainable impact.
More than 80 percent of impact investors believe that they have a responsibility to try to ensure continuity of impact after exit, according to the 2016 Annual Impact Investor Survey.
- Prior to investing: Impact investors seek to understand whether impact is deeply embedded in company business models or operational practices and the likely growth trajectory of the business that is consistent with maintaining these practices.
- At the time of investment: Impact investors seek alignment with co-investors and factor lasting impact into the structure of their deals; aspects such as time horizons and repayment conditions often influence investee strategy and growth expectations in ways that may affect sustainability.
- During investment: Impact investors work with investee company management to instill policies and practices that ensure positive impact continues over the long-term.
- At the time of exit: Many decisions affect impact, including timing of exit, retaining investee management, and selecting buyers aligned with the investee’s mission.
Read the full article the phase of exit for impact investing by Api Podder at My Social Good News.
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