Publication

The Impact Investing Market in the COVID-19 Context: Due Diligence

Response, Recovery, and Resilience Investment Coalition (R3 Coalition) July 9, 2020 Rachel Bass, Pete Murphy, Ruby Khan; Sponsored by the R3 Coalition, which is financially supported by David and Lucile Packard Foundation, the DOEN Foundation, Ford Foundation, John D. and Catherine T. MacArthur Foundation, Open Society Foundations, The Rockefeller Foundation, and Sorenson Impact Foundation.

The widespread social and economic consequences of COVID-19 have further amplified the critical need for impact investing to play a critical role in addressing the crisis. As impact investors seek to deploy capital to new investments and/or to investees already in their portfolio, many face challenges conducting due diligence. The Response, Recovery, and Resilience Investment Coalition (R3 Coalition), which is managed by the GIIN as the organizing body—is publishing a series of issue briefs on the impact investing market in the COVID-19 climate, the first of which provided an overview. The second issue brief in the series, The Impact Investing Market in the COVID-19 Context: Due Diligence, seeks to provide greater clarity on the specific factors hampering investors’ abilities to conduct due diligence in the current climate and on strategies that investors have used to overcome these challenges. Specifically, the issue brief finds that:

  • Partnerships play a critical role in remote due diligence;
  • Strong relationships require a foundation of empathy and trust;
  • Impact investors are adapting their due diligence processes and requirements to adjust to a constrained environment;
  • Impact investors have evolved their due diligence processes rapidly, and they expect further changes in the months ahead

Download “The Impact Investing Market in the COVID-19 Context: Due Diligence” below and scroll down for a full list of issue briefs published by the R3 Coalition.

About the R3 Coalition: Launched in May 2020, the Response, Recovery, and Resilience Investment Coalition (R3 Coalition) aims to streamline impact investing efforts that will address the large-scale social and economic consequences of COVID-19. This initiative is a collaboration across prominent impact investing networks – managed by the Global Impact Investing Network as the organizing body. The R3 Coalition is financially supported by a group of leading foundations including: David and Lucile Packard Foundation, the DOEN Foundation, Ford Foundation, John D. and Catherine T. MacArthur Foundation, Open Society Foundations, The Rockefeller Foundation, and Sorenson Impact Foundation. Along with the GIIN, initial Partner Networks include Aspen Network of Development Entrepreneurs (ANDE), AVPN, B Lab, Confluence Philanthropy, Association of European Development Finance Institutions (EDFI), European Venture Philanthropy Association (EVPA), India Impact Investors Council (IIC), Mission Investors Exchange (MIE), Synergos, Toniic, and U.S. Impact Investing Alliance. See more here>

The Impact Investing Market in the COVID-19 Context Series:

Stay Connected

Sign-up to receive our newsletter and announcements about the latest impact investing news, events, and GIINsights