Partner
Phenix Capital Group is proud to announce the 2023 enhancements to the Impact Fund Assessment Framework (IFA), as a result of the extensive collaboration with experienced institutional asset owners and industry leaders, and the continuous monitoring of practices in the universe of impact funds. The IFA now includes 12 additional criteria , totalling 45 score components. Complementing these advancements, we are proud to introduce the impact benchmark report, setting a new standard for industry evaluation.
The IFA serves as a comprehensive impact assessment tool to support institutional investors with their impact due diligence and comparing the robustness of a fund’s impact proposition. It now includes 12 additional criteria, for a total of 45 criteria assessed and scored at either the fund, fund manager or investee level. The assessment evaluates the impact robustness within 6 main components: impact intentionality, impact portfolio design and management, impact measurement and reporting, impact governances, ESG foundations, Industry collaboration. The assessment aligns to industry standards such as the Impact Measurement Project and the Operating Principles for Impact Management and promotes global initiatives in responsible investment and impact investing.
The additional benchmarking component of the report compares the funds impact due diligence score with other impact strategies across asset classes, and to a more specific peer group. To date, the benchmark shows an industry average of 65/100 with large dispersion within each score components, especially within the impact measurement and management scores and impact governance. These values represent the growing market with new players entering the market, working towards sharpening their practices.
In the rapidly expanding world of impact investing, Phenix Capital Group’s IFA stands out as a vital resource for institutional investors seeking clarity and confidence in their investment decisions. For fund managers, IFA provides an insight into where and how their impact proposition can be improved, which best practices to adopt and what is needed to be a top-tier impact investment fund in the perception of prominent institutional asset owners.
The core feature is its ability to provide a clear and concise evaluation of each fund’s impact performance. It assigns scores to individual criteria while assessing the consistency and alignment of the fund’s impact proposition. At the end of the due diligence process, the fund manager, or institutional investor, who required the assessment receives a comprehensive scorecard that showcases the final fund score. This scorecard also includes a benchmark score, enabling investors to compare the fund’s performance with other similar offerings in the market.
Commenting on the Impact Fund Assessment, Willemijn Verloop, Founding Partner of Rubio Impact Ventures expressed her satisfaction, stating, “Phenix’s Impact Fund Assessment allows us to demonstrate our commitment to thorough impact investing practices. The Phenix team is assessing impact funds from an institutional investor perspective. Phenix has a helicopter view on the impact market and this was useful in the discussion around the criteria. Gaining external perspectives on our performance has been insightful, and the new recommendations and resources deck was genuinely helpful. Overall, it’s been a great experience with a nice, collaborative approach.”
Dirk Meuleman, CEO of Phenix Capital Group, also shared his enthusiasm for the Impact Fund Assessment 2.0, saying, “We are thrilled to introduce the enhanced Impact Fund Assessment, a testament to our commitment to advancing the field of impact investing. This assessment tool reflects our dedication to providing institutional investors with the tools they need to make informed and impactful investment decisions. We believe that by setting new standards in impact due diligence, we can drive positive change in the industry and contribute to a more sustainable and equitable future.”
IFA offers institutional investors a trusted resource to identify and support impactful investments, while providing fund managers with a valuable opportunity to showcase their commitment to generating positive social and environmental impacts.
