fund economics

There are some key questions to consider when trying to tie financial incentives to impact or ESG outcomes, write Charmaine Tam and Karen Chao from law firm Goodwin.

The French manager is targeting €300m for its impact debut, which will link half of its carried interest to impact performance, according to general partner Rémi Said.

UK and German governments commit £9 million and €33 million respectively.

The new platform lists afour-person leadership team, chaired by Sultan Ahmed Al Jaber.

The firm has proposed an amendment to the £466m vehicle that will put sustainability improvement and decarbonisation at the core of the strategy.

Decarbonising is about ‘value preservation’, says Ivanhoé Cambridge’s Michael Neuman, because ‘sooner or later, we’ll have to pay the price for the carbon our buildings emit’.

Alison Humphrey launched Arna last month to advise climate funds and early-stage companies on raising capital.

Malaysia-based impact firm Bintang is requiring portfolio companies in its next fund to achieve B Corp certification within two years.

Though sometimes considered best practice, linking carried interest to impact is not without its downsides, according to panellists at this month's Impact Investor Summit: North America.

Incentives tied to impact targets have come a long way in a short space of time, but best practices around these mechanisms are still evolving.