Whilst traditional investment sits in clearly defined markets with mature pathways to return, impact investment inhabits a wider but less precise landscape. Impact investment is about the intentionality of the investment and is grounded in problem-solving, embracing a wider understanding of value creation.
There is a strong and growing desire across the full spectrum of investment for funding to be used in a way that does much more than deliver financial returns but also delivers social and environmental benefits. The considerable increase in impact-specific funds, as well as a general shift of all investment activity embracing the focus on positive societal and environmental impact, is evidence that making money and having a positive impact in the world can, and should, go hand in hand.
As the focus on impact investment continues to grow, our clients are at the forefront of building impact funds, investing in impactful companies at all stages and evolving their traditional financial-only investment models to incorporate impact objectives.
By combining our in-depth understanding of purpose-driven businesses with our leading expertise in supporting our clients raise and invest capital we enable our clients to accelerate their positive impact.
For business and investors of all sizes, our lawyers are amongst the first to understand the importance of, and develop legal tools related to, maximising purpose alongside financial returns. As such, we help funds evolve their traditional investment processes to:
- navigate the new and evolving regulatory framework;
- create metrics to measure performance of purpose objectives (as well as financial objectives);
- create incentives for investment managers to meet purpose and financial objectives;
- diligence and select investments which meet purpose and financial objectives;
- manage portfolio company level risks around purpose and financial objectives;
- enable effective monitoring and promotion of purpose and financial objectives in portfolio companies; and
- develop remedies for breaches of purpose objectives (at fund and portfolio company level).