BlueMark, a highly-regarded assessor of GPs’ impact practices, has turned its attention to LPs by releasing guidance on best practice for asset allocators making impact investments.
Launched in collaboration with CASE at Duke University Fuqua School of Business, the guide provides advice to allocators on impact due diligence and management as well as “potential red flags” to watch out for in fund managers, the firm said.
At the due diligence stage, the guide explains to LPs how to assess a manager’s impact thesis and the capabilities within its team. Post-investment advice spans reporting and disclosure, and how to monitor a GP’s impact management approach.
“While we recognise asset allocators are wary of over-burdening fund managers or creating more friction points when allocating capital, we believe this guide lays out key practices for how and when allocators should engage with managers throughout the investment lifecycle,” said CASE faculty director Cathy Clark.