ImpactAlpha, February 21 – Under a new agreement with a pair of development finance institutions, agriculture financier Root Capital is eligible for up to $1 million in incentive payments on loans it makes to high-impact agribusinesses in Colombia, Costa Rica, Guatemala, Honduras, Mexico, Nicaragua, and Peru. Already Root has deployed loans eligible for the payments to farmer organizations
- Limited partners are demanding more rigorous impact underwriting by fund managers. But successful projects also require ongoing impact management to deliver successful investments.
- A new reporting framework from the U.S. Impact Investing Alliance and the Beeck Center at Georgetown University stresses key principles, including engagement with low-income and underinvested communities, equitable community benefits, and transparency and measurement around impact objectives and outcomes.
- The software supports more than 100 third-party measurement methodologies, which users can select and use, or they can develop and track their own metrics.
- How to measure the social impact of investments has long been a hot topic among impact investing pioneers. A big, brash newcomer just raised the stakes.
- Though Rise Fund has apparently trademarked the term “Impact Multiple of Money,” impact investors and others have been calculating the economic value of social and environmental returns for decades.
- "[Impact multiple of money] puts impact underwriting on a similar field with financial underwriting by producing a single number to inform decision-making," write Rise Fund’s Maya Chorengel and Bridgespan Group’s Michael Etzel.