About Us - Our Mission

Our Mission

Taking Impact Fund Rating To The Next Level

With the impact investment industry at an inflection point in its growth curve, all stakeholders in the ecosystem face the challenge of sustained, optimal and free flow of capital to the sector. Given that effective measurement drives transparency and accountability, as well as provides critical learning, impact fund performance rating systems are a key driver of continued impact investment growth.

Our conversations with major stakeholders in the social enterprise sector indicate that current systems may need to evolve in order to better address their critical strategic and tactical concerns around robust performance rating.

To keep pace with the dynamics of the impact investing industry, PRISM brings an exciting new approach to the challenge of gathering increasingly authentic and actionable performance data. Driven by the demand for transparency and accountability, with an eye on the current and anticipated realities of the sector, and an ear to the voices of practicing professionals like you, who are both - the creators and users of these ratings, PRISM infuses fresh, innovative thinking to address the question of impact fund performance ratings.

What is PRISM?

Portfolio Risk, Impact, And Sustainability Measurement

Driving transparency and accountability with innovation

PRISM approaches fund performance rating in a holistic, contextual and locally relevant manner. We build on the work done by other pioneering rating tools by keeping 'impact' at the core, but present a multi-dimensional perspective of impact fund performance, supported by a feature-rich platform, robust data and user-friendly interface. We ask exciting questions about the inputs as well as the outputs that drive successful impact investment. We bring new layers of contextuality and perspective that add richness to the answers and enable more informed inferences.

Why PRISM?

Impact funds operate differently from emerging market funds. They function with social, economic and environmental impact as their core philosophy. They focus on outcome as much as output. They seek to drive financial returns without compromising on the developmental returns on investment. And they seek to measure both for holistic performance rating.

The true impact of a fund is more than the summation of impact claimed by each of its portfolio companies. Funds must be measured on not only how their portfolio companies perform, but also on the context in which funds make their investments and the context in which portfolio companies operate. Impact is relative, and any measurement of impact must take into account the actual impact versus the impact potential in a given context.

While investee company performance metrics are important indicators of a fund's performance, focusing solely on the outcomes does not enable a holistic picture of fund performance to emerge. Any rating effort must consider the critical inputs made by the fund to the success and impact potential of its portfolio companies. Fund strategy - the selection of investees and the context in which they work, the potential to make impact in the geographies and sectors where investees operate, as well as the stage and nature of investments are all crucial indicators that need to be captured in a holistic ratings effort. Ratings must go beyond measuring investee performance by also exploring the inputs that enable performance.

For portfolio companies to thrive, the fund needs to survive. When funds make sustainable investment choices, investee companies and beneficiaries thrive. A robust fund ratings tool must measure the sustainability score of the fund by examining the sources of funds, the impact potential of its investment choices and long-term strategy.

A tool to measure impact investment performance needs to strike a balance between globally applicable and locally relevant metrics. Because change will always occur on the ground, the future-ready impact fund rating tool must deploy robust, high-quality geography based business intelligence.