Bank of America Merrill Lynch and Bridges Ventures have issued a report that reveals a set of practical risk mitigation tools for impact investment. The report, Shifting the Lens: A De-risking Toolkit for Impact Investment, aims to shift the lens to focus on how innovative investments can be de-risked to attract much broader flows of capital.
From the report:"To help accelerate the de-risking of impact investments, this report unpacks the general ‘sense of risk’ associated with impact investing into five distinct risk factors that are most deterring asset owners. It then investigates de-risking features that can mitigate each one. The result is a practical de-risking toolkit for those designing impact investment products, brought to life by a catalogue: real-world examples of de-risking features already at work, on which we hope the market will readily build. The report closes with actionable recommendations for those investing, or facilitating investment, into the market"