In an investment space that is still young, Ananda Impact Ventures can boast a rare feat: the full realisation of an impact venture capital fund. 'Look, cash over cash, this has worked,' says founder Johannes Weber.
The climate-focused impact investor’s portfolio is already made up of almost 33% underrepresented founders, and it wants to double that with its sophomore effort.
Linking impact or ESG to financial incentives was a big topic at the Impact Investor Global Summit; it is an 'imperative for the industry' that requires investors and managers to adopt an experimental mindset.
Staking a portion of carried interest on impact performance is still a minority pursuit for GPs, but the arrival of two influential names may cause more managers to have the conversation.
Diane Mak, head of impact measurement and management, said linking impact performance to financial incentives ensures a 'higher level of transparency and clarity', in a video interview at the Impact Investor Global Summit.
Linking financial incentives to impact performance is increasingly seen as best practice in impact. Jack Isaacs and Ellen Maginnis from verification firm BlueMark, having assessed 84 investors' approaches, describe the various ways of doing it.