Mission >>> Metrics >>> Performance
In today’s competitive capital markets, LPs demand measurable, impact-focused outcomes, and fund managers need customized performance metrics to suit individual impact strategies. No two funds are alike in their conception of impact. Yet, performance must be made comparable not only to competitors but to industry standards.
B Revolution leverages its expertise in the B Corporation and GIIRS metrics to create customized impact measurement tools across the lifecycle of a fund’s dealflow, from screening through placement, to management and annual reporting. First, B Revolution seeks a deep understanding of the fund’s impact focus and sought outcomes. Then, B Revolution works with management to define measurable, benchmarked goals, and selects key performance indicators from the standardized B Corporation and GIIRS metrics to help monitor interim performance. These goals and indicators are used to formulate screening requirements and selection policies, key terms for negotiating capital placements, internal procedures for impact tracking and data aggregation, and finally reporting protocol to communicate impacts to LPs and other stakeholders.
Impact Strategy Development
Without an understanding of the vision, mission, principles, and values of a fund, there is little to be measured. B Revolution works with management to formulate a comprehensive impact strategy to position funds to aggressively solicit capital, source competitive dealflow, and place effective investments that generate strong returns and change society for the better. Believing that a strong impact strategy can create a niche focus and competitive advantage, B Revolution helps managers integrate impact strategy into the fund’s business model to create a stronger investment theory for the fund.
Goal Definition and KPI Selection
From the integrated impact strategy, B Revolution isolates key performance indicators and defines benchmarked goals to drive ongoing performance analysis. Goals broadly define verifiable outcomes that the fund seeks to achieve, while the selected impact KPIs form a dashboard of metrics managers can use to evaluate performance, and progress toward goal achievement.
Screening, Management, and Reporting Protocol
Once goals and KPIs are selected, B Revolution creates a comprehensive set of screening criteria, impact management processes, and reporting protocol to help funds create, manage, track, and report impacts on an ongoing basis. These tools form the impact architecture of the fund, and can be modified on an ongoing basis to hone performance and serve the interests of relevant stakeholders.
Performance Metrics and Portfolio Management Tools
Are you wasting your time evaluating deals that simply aren’t within your impact focus? Do you struggle with attracting dealflow that generates your desired impact outcomes?
At B Revolution, we create customized screening metrics and funding requirements that minimize waste in the initial screen process and make your deal review time more targeted and efficient. Our screening metrics are tailored to filter into discrete performance metrics and impact management processes that let you track and manage impacts throughout the life cycle of an individual deal, and across your portfolio.
- Save time
- Improve impact returns
- Increase qualified dealflow
- Strengthen impact strategy
Your impact returns are only as good as your metrics and reporting: you cannot report what you cannot measure, and you cannot measure without accurate metrics.
Increasingly, sustainability and CSR advocates elucidate the link between shared value creation — the value of intangibles like employee and community engagement — and financial sustainability. By developing integrated metrics that evaluate portfolio performance on targeted impacts, B Revolution helps firms measure, track, and report impact returns. Quarterly impact tracking and live data aggregation tools can assist managers with managing the performance of their portfolio, enforcing impact rights, and mitigating portfolio risk.
- More accurate forecasting
- Live data aggregation
- Quarterly impact performance tracking
- Enforce impact rights
- Mitigate governance, supply, and labor risks
Accurate impact data measurement allows fund managers to effectively manage their portfolio, engage in constructive conversation around impact performance, and bolster discussions with concrete, third-party-verified data.
B Revolution empowers funds to actively engage portfolio companies around impact performance through data aggregation, quarterly performance monitoring, and compliance checks.
- Engage your portfolio
- Enforce impact rights
- Build a constructive conversation around impact
- Leverage third-party-verified data
Do you struggle with reporting impact performance within the requirements and limitations of the Investment Company Act of 1940 and other disclosure requirements?
Annual reports are one of the principal means by which funds provide periodic information to their investors, and historically have served primarily as a vehicle to provide financial statements and other financial information to investors. In today’s competitive impact investment industry, investors demand greater disclosure regarding the social and environmental performance of their capital, and there are few standards by which such disclosures are governed or standardized.
The B Corporation and GIIRS metrics provide a unique opportunity to provide standardized, comparable impact data to investors, and indeed many certified B Corporations will be required to disclose such data. However, such disclosures by fund managers must be handled with care, mindful of the risks of inaccuracies in reporting, the limitations of standardized metrics, and any implications of statements regarding historical or future impact performance as it may relate to financial performance.
B Revolution assists funds with ensuring fund and portfolio company compliance with certification, ratings, and legal requirements, while maximizing the opportunities afforded by impact reporting.
- Ensure certification, rating, and legal compliance
- Maximize clarity and precision
- Communicate a compelling narrative
- Publish press-friendly data
- Engage stakeholders through transparency