In traditional funds, financial incentives are a direct way to ensure managers deliver on their primary target: financial success of their portfolio. As we reimagine how funds can be structured to achieve a variety of goals, how do financial incentives, accountability, and transparency further or diminish those goals? Fund creation is a creative process that doesn’t need to blindly follow established norms. Using climate as an example use case, come explore different ways to reward managers who are advancing impact alongside commercial success while being held accountable to a structure that holds each in equal regard, from initial investment through exit.
Designing an impact fund to restore trust through accountability – aligning financial incentives to impact goals
Power and Capital
impact-first funds, catalytic capital, climate finance, emerging managers
Purpose and Desired Outcome
The purpose of this session is to normalize transparency and accountability in regards to compensation, incentives, and mission alignment of investment managers of impact funds. A workshop setting will foster ideas and surface reflection points in the process of designing a new fund with components that are seldom questioned. The desired outcome is to encourage more financial innovation in fund structures. It is a topic ripe for field-wide acceptance and will be furthered by examples and confidence!
Allocators (Family Offices, HNW Individuals, Foundations)
Intermediaries (Financial Advisers, Investment Bankers)
- NameMaggie Cutts
- TitleDirector of Partnerships
- OrganizationPrime Coalition
- OrganizationRockefeller Foundation