Structuring Investment Products for Climate Action
10th June 2020 8:00am Singapore Time
- This session provided a unique window into the real time interactions between impact funds and asset owners. The questions raised about the fund managers’ presentations were a great synopsis of the top 3 challenges impact investing faces: aligning with investors risk/return preferences; suitable exit options; and clear impact measurement.
- Mette Ekeroth’s quote “If you’ve met one family office, you’ve met one family office,” was a perfect segue into the feedback portion of the session, making the point that funds need to be prepared for a very diverse landscape of asset owner preferences.
- Investors gave good feedback on how to address the key considerations of both impact-oriented and commercially-oriented impact investors, pointing to a theory of change and a substantiation of competitiveness, and fund durations, management fees, target IRRs and exit plans, respectively. For both, an understanding of the policy, regulatory and economic environment is critical.