Closed Loop Partners

Dec 5

Impact Strategy Summary

Investment type/ asset class: Venture capital, growth equity, buyout and impact-first catalytic capital
Stage: Pre-seed/seed, growth equity, middle market
Geography: North America focused with European and global strategies
Sector: Circular Economy
Organization type(s): Closed Loop Partners Is an Investment firm, innovation center, and operating group focused on advancing circular economy. Investment firm makes direct investments in companies that meet our impact and finance criteria.
Impact assessment capacity: 1 FT (Sr. Director of IMM) responsible for overseeing policy, practice and integration, and the team is responsible for executing on impact thesis of each fund
Assets under management/tied to impact assessment: $530M+ in AUM.
Strategies to steer towards impact: CLP will take board seats and will actively manage company’s operations. Depending on asset class, there are mechanisms to align manager compensation with impact outcomes.

Does an existing methodology align with yours? If so, which one(s)? CLP adopted four universal steps framework, integrating SDGs, SASB, IRIS+, 5 dimensions of Impact, and the theory of change; aligned with the Operating Principles for Impact Management. CLP uses the Life Cycle Assessment (LCA) for emission reduction calculations.
Time horizon of assessment: Lifetime of the fund for measurement, system change beyond
Fractionalize shares of impact among interdependent climate technologies: No
Fractionalize your share of impact as an investor among many investors: Fund specific
Key Metrics tracked: Materials kept in circulation (Tons), GHG emissions avoided (Metric Tonnes)
How realized impact is/will be tracked: Through spreadsheets, no tool used today
How often (if at all) is your reporting audited? Every 3 years
Do you tie remuneration to impact? Discretionary Component of managers compensation is dependent on achievement of both financial and non-financial performance on individual, fund and group level.
Other assessment or investment decision making characteristics you're proud of: Our new commitment to integrating carbon accounting into impact assessment

Anjali Deshmukh