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How impact fund portfolio companies perform at exit

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Summary

This article discusses how portfolio companies in impact funds typically exceed the financial performance targets set by their general partners at exit. According to the article, nearly half of portfolio companies in impact funds exceed these targets, which is encouraging for traditional investors considering investing in impact. The article was written by Snehal Shah and was published on June 6th, 2023.

Q&As

What is the performance of portfolio companies in impact funds at exit?
Nearly half of portfolio companies in impact funds exceed GPs' financial performance targets at exit.

How does this performance compare to GPs' financial performance targets?
They exceed GPs' financial performance targets.

Is the performance of portfolio companies in impact funds encouraging for traditional investors?
Yes, it is encouraging for traditional investors who are thinking about investing in impact.

What is the author of this article?
Snehal Shah.

How can readers access this article?
Readers can access this article by signing in or registering for New Private Markets.

AI Comments

👍 This article provides an encouraging outlook for traditional investors who are interested in impact investing. The results of nearly half of portfolio companies in impact funds exceeding their financial performance target is a great sign of success.

👎 The article does not provide a clear explanation of what the financial performance targets are, making it difficult to make an informed decision about investing in impact funds.

AI Discussion

Me: It's about how impact fund portfolio companies perform at exit and the financial returns. Almost half of portfolio companies in impact funds exceed the financial performance targets at exit.

Friend: That's really encouraging, especially for traditional investors who are considering investing in impact.

Me: Absolutely. It shows that investing in impact funds can be a good financial decision. It's also good news for the companies involved as it shows that impact investing is becoming more and more prevalent.

Action items

Research impact funds and their portfolio companies to understand the potential financial returns.
Consider investing in impact funds to diversify your portfolio and support social and environmental causes.
Connect with other investors to discuss the potential risks and rewards of impact investing.

Technical terms

Impact Fund: An impact fund is a type of investment fund that focuses on investments that have a positive social or environmental impact.
Portfolio Companies: A portfolio company is a company that is owned by a venture capital firm, private equity firm, or other type of investment fund.
GPs: GPs stands for General Partners, which are the managing partners of a venture capital or private equity fund.
Financial Performance Targets: Financial performance targets are the goals set by a venture capital or private equity fund for its portfolio companies.
Impact Investing: Impact investing is an investment strategy that seeks to generate both financial returns and positive social or environmental impact.
Private Equity: Private equity is a type of investment fund that invests in companies that are not publicly traded.
Venture Capital: Venture capital is a type of investment fund that invests in early-stage companies with high growth potential.