Learn about how strategic impact value creation approaches can drive both financial and impact performance

Impact value creation refers to the actions that investors take as owners, lenders, and influencers to enhance impact efficacy (i.e., the degree of scale, depth, or duration of the measurable social or environmental benefit), often with the goal of driving a commensurate improvement in financial returns. However, evidence substantiating the value generated by impact investors has historically been limited.

To address this gap in the market, Tideline and Impact Capital Managers (ICM) engaged in research to identify four key considerations that are foundational to impact value creation, and can help private markets impact managers to develop, communicate, and execute their value creation approaches with greater rigor, consistency, and results. These pillars of impact value creation are: Financial materiality of impact (FMI); Sources of impact value creation; Impact value creation modalities; and Visibility of impact opportunities.

The research also highlights seven distinct levers of action frequently utilized by impact capital managers as part of their impact management playbooks. This report also includes concrete examples of impact investors providing differentiated value to enhance both the impact and financial outcomes of their investees. Explore the case studies below.