Legal Fundamentals of Impact Investing: A Rapidly Growing World

Mr. Panchal, Ms. Kadian and Mr. Stone present a primer on impact investing transactions, exploring one of the fastest growing areas of investment activity in the world today. The panel looks at impact investing from a transactional lawyers’ perspective, providing an overview of the commercial, social and legal landscapes in the field. They then apply these to the practical implications of a financing transaction, exploring early stage, follow-on round, debt, and equity transaction structures.

Impact investing is an investment discipline in which investors actively place capital into enterprises that seek to generate social and/or environmental benefits alongside financial returns, the latter of which can range from concessionary to market rate returns.

The panel explores areas requiring particular attention from counsel when diligencing opportunities, drafting agreements and negotiating deal terms.

Learning Objectives:

I.     Understand the unique nature of social impact transactions, which share objectives of philanthropy and traditional investing, including the concept of “double-“ and “triple-bottom line” objectives

II.    Understand due diligence considerations in connection with an impact investing transaction

III.   Analyze the different legal frameworks and contractual tools that can be utilized to structure a transaction to efficiently and effectively achieve investor and company goals

IV.  Review the contractual provisions that provide for risk allocation, accountability, and exit opportunities for companies and investors

V.   Explore current trends in impact investing transactions