In the Press
December 14, 2023

How to Approach Impact-Linked Carry (New Private Markets)

Professionals

There is general support from the impact investor community for impact fund managers to “put their money where their mouth is” with respect to achieving impact and financial return. One of the ways sponsors can signal their intention is by linking a portion of their remuneration to the achievement of environmental, social and governance metrics. Such fund managers go beyond a promise-driven ESG policy and seek to achieve greater investor alignment by tying profits to impact outcomes that are tracked with objective metrics. Private Investment Funds associate Charmaine Tam explain more in New Private Markets.