Press Release – NEW YORK, JANUARY 11, 2018 – A report published today by the Global Impact Investing Network (GIIN) reveals a range of available strategies used by investors to strengthen their ability to exit in a way that meets liquidity objectives while also ensuring sustainable impact.
More than 80 percent of impact investors believe that they have a responsibility to try to ensure continuity of impact after exit, according to the 2016 Annual Impact Investor Survey. The new report, Lasting Impact: The Need for Responsible Exits, helps investors fulfill that responsibility by detailing various practical strategies for ensuring long-term impact.
Through over 30 interviews with investors and entrepreneurs, the report reveals that investors employ strategies throughout the life of their investments—pre-investment, at the time of investment, during the investment, and at the time of exit—to ensure the sustainability of the impact that they seek to create.
The report includes case studies that provide in-depth examples of responsible exits from impact investments. Case studies profile Adobe Capital’s exit from a natural gas conversion company, Lok Capital’s exit from a microfinance institution, Beartooth Capital’s sale of ranchland, and LeapFrog’s exit from an insurance provider.
“Impact investing has huge potential to generate positive long-term outcomes for society and the environment,” said GIIN Research Director Abhilash Mudaliar. “But investors need to have the confidence that they will be able to exit responsibly. There are many more exit approaches to meet financial objectives and ensure sustained impact post-exit than investors may be aware of. This report should provide impact investors with proven strategies that they can use to exit their investments in ways that won’t jeopardize the impact they seek to create.”
This report is made possible by the generous support of the American people through the United States Agency for International Development (USAID). The contents are the responsibility of the Global Impact Investing Network and do not necessarily reflect the views of USAID or the United States Government.
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