Impact Investment Due Diligence
We recently provided due diligence reports on impact investments for charitable foundations in the US. Due diligence clients have included the Vermont Community Foundation, High Meadows Fund and the Castanea Foundation. All three foundations are leaders in using impact investments to further advance their public-purpose missions. The Vermont Community Foundation is committed to building philanthropic resources that will sustain healthy and vital Vermont communities now and into the future. High Meadows is extremely concerned about the impact of a changing climate. They focus their activities on energy, land use and sustainable agriculture. Castanea’s mission is to conserve and protect agriculturally productive and environmentally significant land and water resources in its target region.
The Vermont Community Foundation (VCF) is a leader among community foundations in impact investments. In 2002, VCF’s Board made the commitment to invest up to 5% of its capital pool in mission-related projects within the state. By the end of 2013, the foundation had over $7 million invested in Vermont-based organizations and businesses. Initial investments were made in regional intermediaries like community development financial institutions (CDFIs) and venture funds; more recently the fund has made direct investments in businesses and organizations. VCF helped develop the Community Foundation Field Guide to Impact Investing, now used by community foundations across the US.
The High Meadows Fund is committed to promoting vibrant communities and a healthy natural environment while encouraging long-term economic vitality in Vermont. The Fund helps Vermonters mitigate the impact of climate change and adapt to its consequences, such as extreme weather events. High Meadows invests a portion of its assets in enterprises that encourage new farm and food businesses, land conservation, and building performance improvements that lower the reliance on fossil fuels, typically through pooled funds.