Giving Compass' Take:

• Here are several insights for impact investors on how to support investees while addressing the COVID-19 pandemic. 

• How can impact investors create a more sustainable investing future?

• Here is a range of vetted funds addressing immediate and long-term needs related to coronavirus.

Foundations, philanthropists, and impact investors have crucial roles to play in responding to the COVID-19 emergency and helping to build resiliency for communities across our country and around the world. The Arabella team has already shared guidance on moving forward together and essential questions funders should be asking now. We believe there are also important opportunities to adjust and increase impact investment activity, both to complement purely philanthropic initiatives and to respond to the needs of communities most acutely impacted by this pandemic.

At this time of uncertainty and worry, investors, foundations, and philanthropists should squarely focus their efforts to accomplish three goals: maximizing the impact of their investment portfolios to mitigate what could be a severely economically distressed period; achieving significant financial and impact returns; and laying the groundwork for a resilient, equitable future economy.

As the COVID-19 crisis has evolved, we have been in touch with clients and partners—including an engaging discussion with the Mission Investors Exchange on Twitter—about how impact investors can be responsive to emerging field needs while maintaining and expanding support for existing investees, all with an eye toward creating more sustainable social and economic systems in the future. Our insights suggest impact investors should do the following.

  • Assess how you can best support your investees
  • Delay interest payments and postpone loan maturities.
  • Help investees access capital through guarantees.
  • Provide capital through bridge loans.
  • Look for new opportunities.
  • Invest in experience.
  • Prepare to fund innovative businesses.
  • Pay close attention to equitable practices.

Read the full article about impact investors by Alexandra LaForge and Cyrus Kharas at Arabella Advisors.