Impact Measurement
How does a fund-of-funds make sense of its impact given a wide scope of ventures and funds in the portfolio?
1 minute read
Challenge
A fund-of-funds plays a unique position in the impact investment ecosystem. They enable other funds to invest into ventures, while the FoF itself doesn’t make any direct investments. There are many successful examples of FoFs but very little existing work examining how they can measure its impact. Given the fact that they are several layers removed from the ventures on-the-ground, how might a FoF properly measure and manage impact?
Solution
We supported a major Canadian impact investment fund’s mission of generating measurable impact across a variety of sectors.
We examined the existing landscape of measurement tools available from organizations like the GIIN, B Labs, and the Impact Management Project. We also mapped out the FoF’s portfolio of funds and the ventures that have subsequently received investment.
Using both a top-down and bottom-up approach, Canvas created a cohesive impact framework drawing upon existing forms of impact evaluation, such as the UN Sustainable Development Goals (SDGs) and IRIS+.
Results
The framework was created using current industry best-practices and is reflective of diverse forms of impact created by a fund-of-funds across a variety of industries.
Through our work we were able to provide a foundation for impact measurement at a fund-of-funds level which can be replicated across organizations and sectors.