New Study by Impact Capital Managers and Morrison Foerster Shows Almost Two-Thirds of Impact Exits Meet or Exceed Financial Performance Expectations
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Monday, May 8, 2023
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NEW YORK, May 8, 2023 /PRNewswire/ -- ICM Institute, a nonprofit research arm of the Impact Capital Managers (ICM), a membership association of leading private capital funds, together with leading global law firm Morrison Foerster, today published a new report, "Strengthening Outcomes: Impact and Financial Value at Exit," that shows almost two-thirds (65%) of impact exits meet or exceed financial performance expectations. The first-of-its-kind study draws on a sample size of 230 exits from ICM members, each of which manages a market-rate impact fund and is therefore uniquely positioned to provide data and insights into the success of impact exits and the key drivers of that success.
Key Points:
- The continued growth in impact investing has led to a parallel increase in exits by impact investors.
- ICM Institute analyzed 230 exits and found that 42% outperformed financial expectations, 23% were "at target," and 35% underperformed.
- The figures are similar when it comes to impact performance, with 42% outperforming impact expectations, 39% "at target," and 19% underperforming.
- Investors' impact goals were met or exceeded in 81% of exits, reflecting a slightly higher level of performance in impact as compared to financial performance.