2

Impact Investing Returns

Asked by:
Community Member
1
0
0
Jul 19, 2023
Do Impact funds generally generate lower returns than others?  What is the expectation held by Limited Partners? 
1 answer
Accepted Answer
Jul 19, 2023
There are lots of funds with an Impact thesis that are over-performing while others under perform. They follow a Pareto distribution for returns just like all other funds.
Thank you Mike, from what I have read that sounds about right with the key variation being those that deliberately place financial returns lower on their priority list.  I found this article interesting: 
https://impactalpha.com/do-impact-venture-capital-funds-outperform-traditional-vc-yes-no-and-maybe/#:~:text=Using%20the%20latest%20Cambridge%20Associates,a%20bottom%20quartile%20of%201%25.
Community Member
Jul 21, 2023 11:39pm
Add a comment

Log In or Sign Up

Please Log In, or Sign Up to participate in the discussion.

Apply to VC Lab Cohort 15

Get full access to Decile Base and the Decile Hub venture platform for free by joining the VC Lab program.

Apply to VC Lab Cohort 15