6. Industry Benchmarks and Best Practices
- How does the recycling rate in this model compare to comparable funds in similar sectors or stages?
- What lessons can be drawn from successful funds that used similar recycling strategies?
- What are industry best practices for the proportion of recycled capital relative to total distributions?
- How does the model's assumed capital recycling rate compare to those of high-performing funds
7. Impact-Based Outcomes and Reporting (e.g., Article 9 Funds)
- How can the model be adapted to integrate non-financial KPIs that measure impact outcomes in line with Article 9 requirements?
- What specific sustainability metrics (e.g., carbon reduction, social equity improvements) are incorporated, and how are they quantified?
- How does the model account for both financial and non-financial returns when calculating fund performance?
- Are the chosen impact metrics aligned with the EU Taxonomy and SFDR reporting standards?
- What frameworks (e.g., GRI, SASB, IRIS+) are used for measuring and reporting impact, and how does the model accommodate them?
- How is impact data collected, verified, and reported throughout the fund lifecycle?
- What weighting is applied to impact metrics versus financial performance when assessing the success of the fund?
- Does the model include scenario analysis for potential trade-offs between financial returns and impact goals?
- How does the model simulate the risk of impact underperformance and its implications for investors?
- What governance mechanisms are in place to ensure that impact goals are maintained throughout the investment period?
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Please refer to the following questions in context of making adaptations to the Foresight Model:
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Gauri Deoras
Gauri Deoras
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