Capria and 59 other investors commit to managing USD $350B assets in line with the recently launched Operating Principles for Impact Management
12th April 2019, Seattle, WA: Capria, a global investment firm leading the largest network of fund managers collaborating to deliver superior returns in emerging and frontier markets, announced that it is a founding signatory to International Finance Corporation’s (IFC’s) recently launched Operating Principles for Impact Management.
Capria has been practicing impact management since its inception in 2015 and now has joined 59 other investors to adopt the Operating Principles for Impact Management – a newly built market standard for investors who aim to generate positive impact along with strong financial returns in a disciplined and transparent way. Together they are responsible for USD $350B assets which they will manage in line with the principles. The principles provide a framework to operationalize the complex and nuanced topic of impact management and bring clarity to the question of what constitutes a professional impact management system.
Taking Impact Investing Mainstream to Ensure Continuous Adoption
In a new report—Creating Impact: The Promise of Impact Investing—IFC, a member of the World Bank Group, estimates USD $26T to be available for impact investment. To fulfill the massive potential, more investors need transparent guidelines to invest for positive impact and amplified returns.
“This is history in the making,” said IFC CEO Philippe Le Houérou, in their recent announcement. “We believe there is now potential to bring impact investing into the mainstream. Our ambitions are very high – we want much more money managed for impact because there’s no time to lose to protect our planet and communities around the world.”
“Our investment strategy and operations have been in line with IFC’s Operating Principles of Impact Management from the get-go. Over the years, Capria has been a pioneer in ensuring that there’s transparency as well as discipline in all our investments.”, says Will Poole, Co-founder and managing partner, Capria. “As investors in emerging market venture capital and private equity funds, we apply global best practices of impact and ESG management in order to increase the resilience and scaled impact of our portfolio. This mainly involves end-to-end impact management and evaluation led by our proprietary tool, Capria Quantum.”
Capria Quantum is a comprehensive capabilities evaluation tool that benchmarks impact investors across eight categories and nearly 100 sub-categories. The findings can be used to develop a plan with corresponding actions that will accelerate an investment firm’s growth and overall capability. The tool is based on Capria Partners’ 40+ years of experience in investing both in Silicon Valley and in global emerging markets. It further integrates the learnings from Capria’s continuous evaluation of more than 600 fund managers from around the world.
Our initial analysis of data collected from 119 fund managers indicates that managers from Sub-Saharan Africa slightly surpass the global average in the implementation of IFC Principle #1 “Define strategic impact objective(s), consistent with the investment strategy.”, followed by managers from Latin America and South/Southeast Asia respectively.
Building excellence in impact investing is a journey that requires constant learning, evolution, and improvement. The Operating Principles of Impact Management will encourage many more investors to look at impact management and measurement through the same lens that we and other pioneering investors have used. IFC’s leadership is very welcome by the impact investing community, as it will help attract more serious investor attention to impact investing opportunities.
IFC’s Operating Principles for Impact Management and commitment of the founding asset managers will pave way to turn the potential market opportunity (USD $350B) into investments that result in measured, continuously improving deployment of funds to achieve impact that generates strong financial returns along with the UN’s Sustainable Development Goals.
Capria is a global investment firm leading the largest network of fund managers collaborating to deliver superior returns in emerging and frontier markets, using flexible capital, advanced investment systems, and deep partnerships. Through its network fund, Capria invests in venture capital, private equity, and other debt and equity funds backing early-growth businesses. Capria applies global best practices of impact investment and ESG management in order to increase resilience of its portfolio. Capria and its global network deliver profits with scaled impact aligned with United Nations’ Sustainable Development Goals. Capria has offices in Seattle, Bangalore, Singapore, and Nairobi. Learn more at https://2019.capria.vc and about Capria’s activities.
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