Project Description

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IMPACT ASSESSMENT PROTOCOL TO CALCULATE THE IMPACT MULTIPLE OF MONEY

Client

Wire Private Markets Fund (WPMF) is an investment fund managed by Wire Group. WPMF is building up a portfolio of 10-15 impact funds that contribute to the “regeneration of human and natural capital”. The Fund believes in a conscious and regenerative economy where (impact) investors are explicit about the Societal Value that is created or broken down and aspires to reach an impact multiple (Impact Multiple of Money – IMM) of at least 2.

Project description

Together with Wire Group, we developed a protocol that details an approach to measure and value the IMM of WPMF. The IMM is the ratio between the cumulative Societal Value generated by the investments made by WMPF and the Capital Base. The protocol includes a comprehensive assessment and valuation framework with a step-by-step approach applicable to a fund-of-funds. The governance and implementation of the Protocol is also presented. The protocol is aimed towards the Limited Partners of WMPF, but also the broader public.

Benefits to the client

The protocol that has been developed provides a solid base towards measuring the IMM of WMPF and enabling the achievement of an IMM of at least 2.  Wire Group gains clarity in terms of the necessary requirements, resources, roles and responsibilities around the assessment of impact. In addition to that, the protocol can be used to give  critical information to investors and provide transparency on how impact returns are calculated, which sets expectations and helps in conversations with funds. Finally, the protocol provides a methodology against which a validation or audit procedure could be compared. As a next step, the protocol provides a detailed methodology that can be put into testing with a selection of funds within the portfolio of WPMF. This will help to further tailor the approach (where applicable) and roll out its implementation to the full portfolio of WPMF.

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