Private equity giant TPG and Bono launched a new company that measures the impact on the SDGs of a $228 billion investing market

This week was the launch of Y  Analytics, a new, independent organization established to drive increased and  more effective investment in creating social and environmental good by  equipping capital allocators with the research basis to effectively understand  the impact of their decisions. The organization, headquartered in Washington,  D.C. and led by Maryanne Hancock, will help bridge the divide between the research  community and capital allocators. Ultimately, this will ensure that capital  directed at addressing the United Nations Sustainable Development Goals is used  most efficiently, and more broadly, that we advance our abilities to direct capitalism  towards solutions that have the potential to create real, tangible impact.

From Maryanne Hancock, CEO of Y Analytics: “We are building on the extensive  effort of others, who have worked for decades to advance the world’s  understanding of what creates impact. Y Analytics is built on the premise of  learning from their work, utilizing research to understand what creates impact,  building effective tools to predict, underwrite, and manage it, and sharing  that work with others to drive better decision-making. Enabling better  decisions around how the world directs capital towards change will be vital in achieving  the progress we seek to make.”

From Bono, Co-Founder of The Rise Fund: “Capitalism  isn’t immoral, but it is amoral and it needs direction. If capitalism is to be  a force for good we have to be able to measure when it’s doing good and when  it’s doing harm. To persuade the biggest institutional investors to commit  their funds to tackling some of the world’s most urgent challenges we need to  be as confident about the impact returns as we are about the financial returns  – fuzzy thinking just won’t cut it. We need cold hard facts – that’s what Y Analytics  has been created to provide.”

From Bill McGlashan, Co-Founder and CEO of The Rise Fund: “We face  a daunting series of global economic and environmental challenges, and as the  UN Sustainable Development Goals show, we have to activate the scalable engine  of entrepreneurship to reach those heights.   To do that, we need to help people better understand what creates real  change and empower them to grow the solutions that work. Y Analytics will help  inform capital in pursuit of change, ensuring that every dollar is used most  effectively and providing a common language to pursue positive impact – narrowing  the gap to reach the Sustainable Development Goals and advancing progress  towards sustainability and economic inclusion.”

From Sir Ronald Cohen, Chair of the Global  Steering Group for Impact Investment: “The launch of Y Analytics represents  another step in the crucial effort to channel increasing investment to improve  lives and the planet.  It is a myth that  impact is not capable of being reliably measured and compared.  If impact investing is our rocket-ship to  social improvement, impact measurement is our navigation system.  I look forward to supporting Y Analytics  efforts to accelerate the impact revolution’s advance.”

From Anders Strömblad, Head of External Management,  AP2: “We support the Y Analytics mission in pursuit of a better understanding  of how to drive positive social and environmental impact alongside market rate  returns. For investors, impact cannot simply be a qualitative term, it should  be intrinsic to and fully integrated in one’s business model and quantifiable.  Y Analytics’ work to better understand and evaluate what creates impact and to  track and assess it over time is vital; we all know why we need to consider  social and environmental impact, but how we hold ourselves accountable to our  goal is the crux of the issue.”

Y Analytics is an outgrowth of  The Rise Fund and is informed in part by active investment experience, totaling  nearly $2 billion across 25 investments in a variety of industry sectors and  spanning markets around the world.  Building  on the work of The Rise Fund – in partnership with Bridgespan and KPMG – and staffed  by a team of economists and researchers, Y Analytics will seek to translate research  to help decision-makers evaluate impact at the front-end of the capital  allocation process and manage impact rigorously thereafter. It will also collaborate  with other organizations working creatively in this space and share its  learnings to help advance knowledge in the field. It will focus on two primary streams  of work:

  • Creation, Advancement, and  Stewardship of Research-based Disciplines –  Building mechanisms and methodologies that bridge the divide between research  communities, capital allocators, and other key decision-makers. Y Analytics  will actively share the approaches and learnings with the public to help  advance the field.
  • Impact Assessment and Analytics Services –  Helping investors make more effective, evidence-based decisions using a  rigorous approach that curates and translates research to inform estimations of  net impact in economic terms that an investment creates across several impact  pathways.

Y  Analytics will actively engage with leaders across a wide range of disciplines  to ensure that it brings multiple perspectives into its work.  Its Editorial Advisory Board includes Helene Gayle (President and CEO of The  Chicago Community Trust and former CEO of CARE), Lenny Mendonca (Senior Partner  Emeritus, McKinsey and Company), Judith Rodin (former President, Rockefeller  Foundation and President Emerita, University of Pennsylvania), Laura Tyson (Distinguished Professor of the Graduate School, Haas  School of Business and Chair, Board of Trustees, Blum Center for Developing  Economies, University of California, Berkeley), and Robert J. Zimmer (President, University of Chicago). It is forming  partnerships with leading research institutions, such as the Abdul Latif Jameel Poverty Action Lab at  MIT, the World Resources Institute and with leading researchers who will serve as a Research Advisory Council. These  partners will help Y Analytics develop a more thorough understanding of  potential impact pathways and continually advance its work.

Y  Analytics will partner with and serve a variety of organizations and industries  over time.

About Y Analytics

Y Analytics is a new independent  public benefit corporation, where research and capital converge for good. Y Analytics bridges the divide between decision-makers and the research community,  leveraging a research-based approach to help better understand the impact of capital  allocation decisions. Y Analytics will enable the increasing efficiency and  reach of every dollar invested and ultimately help catalyze a sustainable  future. The organization, which includes an in-formation, affiliated nonprofit  is headquartered in Washington DC and led by CEO, Maryanne Hancock.

Photo: Free images

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