Toniic T100: Launch Report & Toniic Diirectory Release

TONIIC T100: LAUNCH REPORT

OFFERS NEW INSIGHTS FROM THE FRONTIER OF IMPACT INVESTING
Toniic Diirectory Provides Searchable Catalog of 1,000+ Impact Investments

 

San Francisco, CA – Toniic Institute, the global action community for impact investors, today released T100: Launch – Insights from the Frontier of Impact Investing, in a presentation at the GIIN Investor Forum 2016 in Amsterdam. It is the first report in a longitudinal study of impact investing portfolios of Toniic members, starting with 51 portfolios. The data analyzed reveals that 100% values alignment can be achieved today in the investment portfolios of high net worth individuals, foundations, and family offices, including those portfolios seeking market-rate returns.

 

The inaugural T100 report relies on private portfolio data shared by Toniic 100% Impact Network members, ranging in size from less than US$2 million to more than $100 million, with combined capital of more than $1.65 billion. The T100: Launch report is available for download at www.toniic.com/T100.

 

As part of the T100 project, Toniic also announced the launch of the Toniic Diirectory, a publicly accessible, peer-sourced catalog of more than 1,000 impact investments made by its members, upon which the T100 findings are based.  The directory is searchable by impact categories, impact themes, asset classes, management structure, liquidity profile, and impact geography, and is available for review at www.toniic.com/toniicD.

 

The T100: Launch report offers insights from the frontier of impact investing – from those investors who have committed to go “all in” to impact-alignment across all asset classes in a diversified portfolio. It reaches the following conclusions:

  • 100% alignment of one’s investment capital and values is possible today. 
  • Alignment is for everyone. Geography is no barrier, nor are particular causes or themes.
  • Investors have found investments they consider impactful across all asset classes.
  • Measurable impact can be generated by a wide range of portfolio asset sizes, liquidity objectives, and investor types while also achieving market-based financial returns.
  • On average the portfolios are 64% deployed with impact and 33% have already reached 90% or greater impact.

“As a trusted third party, we can aggregate information through the T100 Project, and help investors learn from what’s happening on the frontier of impact investing,” said Toniic CEO Adam Bendell. “With these initial findings, the T100 Launch report begins to unravel certain myths about the potential for impact investing. We see now that impact returns can come alongside financial returns, and that one can achieve positive impact in virtually every asset class, not just in early stage private equity.”

 

The T100: Launch report is the first in an upcoming series of reports to be issued by Toniic as part of the T100 project, based on data drawn from the increasing scope of the Toniic Diirectory. This will provide a newfound perspective into the efficacy of value-aligned impact investments in yielding positive financial returns alongside targeted positive impact.

 

To contribute to the Toniic Diirectory, investors will be able to utilize the accompanying Toniic Impact Portfolio Tool, which enables them to see relationships between asset classes and impact in their own portfolio of investments, and contribute to the demonstrative power of sharing actual investments in the Diirectory.

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Over time, the Diirectory will grow with new investment data, serving as a living resource for impact investors. Significant industry players, including the Tides Foundation and ImpactAssets, have already agreed to add their investment information into upcoming versions of the Diirectory.

 

“This report and its underlying data is the starting point of a multi-year longitudinal study to follow 100 portfolios over multiple years,” said Dr. Charly Kleissner, co-founder of Toniic and the 100% Impact Network. “We believe the results of these efforts will make an important contribution to developing the new financial system, a system that will have positive impact at its core.”

 


About Toniic and T100

 

Toniic is the global action community for impact investors. Toniic’s 160 members represent more than 360 impact investors from 22 countries who share a vision of a global financial system creating positive social and environmental impact. Toniic’s mission is to empower impact investors.

 

More than half of Toniic members are also members of the Toniic 100% Impact Network, each of whom have committed to move an entire investment portfolio from less than $2 million to more than $300 million into 100% impact investments. This represents a total commitment of close to $4 billion.

 

The T100 Project is a longitudinal study of the portfolios of some of those investors. It reveals new insights about the various paths towards and feasibility of 100% impact investing. The T100 project includes periodic reports, issue briefs, videos and podcasts, and the Toniic Diirectory, a peer-sourced directory of over 1,000 impact investments across all asset classes. For more information, visit www.toniic.com/T100 or write us at T100@toniic.com.

 

 

 

Toniic’s T100 Launch Report: A multi-year study

Toniic released today it’s first report “T100: Launch – Insights from the Frontier of Impact Investing” in a longitudinal study of impact investing portfolios of Toniic members, starting with 51 portfolios. The data analyzed reveals that 100% values alignment can be achieved today in the investment portfolios of high net worth individuals, foundations, and family offices, including those portfolios seeking market-rate returns.

A healthy dose of Toniic: Insights on impact investing at SOCAP16

By Alan Pierce

 

An annual mecca for impact networking and knowledge sharing, Social Capital Markets convenes an impressive array of plenaries, breakout sessions, and speakers. And at this year’s conference, SOCAP16, members of Toniic’s impact investor network held a considerable presence on stage. Over the course of three days and approximately 150 unique panels Toniic members led or participated in nearly a fifth of them.

 

I attended some of these events to listen to the Toniic community as they shared knowledge, experience and vision for leveraging capital in service to systemic social change. Below is a brief peek into three of these sessions with insight from the Toniic members who hosted them.

 

Each includes one memorable quote, a key insight, and, in alignment with Toniic’s mission as a global action community of impact investors, I have also offered an actionable message based on those insights.

Morning Plenary

Jed Emerson, Blended Value

 

A key quote: “This is not a conversation about trade-offs and compromise and marginalizing profitability in order to create some sort of fuzzy concept of charitable good. It is about how do we create a more integrated approach towards value creation through our companies, through our communities, through our capital. That’s the conversation.”

 

A key insight: Intentionality. Emerson cautions that the recent, rapid evolution of impact investing has introduced a propensity to de-emphasize the “why” in favor of the “how.” He urges us to hold a clear vision for why we are doing what we are doing, honoring our shared drive to raise humanity using purposeful capital structures. Without clarity of this embedded intentionality we may become prone to avoiding complexity in favor of “cheaper,” easier impact goals, a process which could ultimately compromise the reach and sustainability of that impact.

 

An actionable message: In your organization, your job, your life, with every decision you make, ask yourself, “Is this in alignment with my/our vision to our greater purpose?” It is a simple inquiry. The challenge lies not in asking it, but in acting always to affirm it. Jed challenges us to strive for the latter.

Supermodels: Constructing an Investment Portfolio With 100% Impact

John Kohler, Miller Center for Social Entrepreneurship

 

A key quote: “As we’ve observed over the past 10 to 15 years when a new entrant wants to combine money and meaning we invite them to invest in the very hardest place right off the bat, which is to invest in the small social enterprise 6,000 miles away making clean cookstoves, or providing clean water — which is good merit and high impact but very hard to manage right out of the box. So how do we make that much more approachable with people who are high net worth asset owners or institutional fund managers?”

 

A key insight: For new entrants to the impact investing sphere it is important to first clearly articulate your impact investment vision. I am moved to include this insight because of its evident alignment with Jed Emerson’s emphatic call to be guided by a greater “why.” Kohler echoes this emphasis suggesting that it will ultimately help inform which asset classes are most reasonable and available to you. With a clearly defined impact thesis or theory of change you can build out clear thematic choices (e.g. water, education), establish yourself on an impact-return spectrum, and ultimately determine an array of asset classes likely to be most effective in achieving your goals in alignment with an overall vision.

 

An actionable message: Begin modeling an impact portfolio that is structured around a theory of change model that speaks to what moves you or your organization. If you have already done so, or are in this process, perhaps share what you have learned along the way. It is important to collaborate on such best practices. Because as Kohler and others (e.g Toniic 100% IMPACT Network members) encourage such dialogue and act on it, we move more swiftly from conversation to effective action, implementation, and systemic change.

Paying For Impact: How New Kinds of Incentives Are Boosting Businesses That Serve The Poor

Rodrigo Villar Esquivel, New Ventures Mexico

 

A key quote: “One of the problems in raising money in Latin America is exits. Many entrepreneurs we have seen, great companies and great ideas, they are not thinking about selling their company. People build companies to have a solution to a problem or just to have a way of life, to have it for their family…So we created a way to invest in which people don’t have to sell.”

 

A key insight: Cultural and social norms may call for non-traditional investment models. Villar brings a perspective from Mexico and Latin America where impact investing remains a more nascent, albeit growing, field. While he acknowledged this perspective is not true for every single entrepreneur it sheds light on what is still a prevailing mindset. To meet these entrepreneurs where they are, in terms of values, can mean exploring things like social impact bonds, or other pay-for-success models. The ability to structure and implement such a process may depend on how directly you can measure the outcomes of a product or service. Indeed, Villar emphasizes the best companies for such models are those that have a product or service that is directly solving a social problem (e.g. providing affordable healthcare services for treatable blindness → you can measure how many people are able to see again).

 

An actionable message: One active and perhaps more subtle take-away from Villar’s insights is to embrace cultural sensitivity when approaching an impact investing opportunity. Instead of forcing a square peg in a round hole, try to explore and harness the cultural nuances of a region’s entrepreneurial consciousness. In doing so you might discover alignment and realize returns in places and in ways that expand opportunity, and impact, for all involved.

 

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Alan Pierce holds a master’s degree in Social Entrepreneurship from Hult International Business School. While at Hult he co-led the development of a student-run accelerator for local social enterprise startups, and received a management consulting certification. Prior to pursuing this degree Alan worked for a number of nonprofits in the SF Bay Area. This included an institute conducting research on individual and social transformation, at which he published several academic papers.

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Toniic Institute Announces New CEO

Adam Bendell, former CEO of Strategic Discovery and CINO of FTI Consulting, named to lead Toniic Institute

 

Adam BendellSAN FRANCISCO – The Toniic Institute, a nonprofit global organization of impact investors, announced today the selection of Adam S. Bendell as its next chief executive officer, commencing July 1, 2016. Bendell brings entrepreneurial, financial, operational, marketing and business development expertise to Toniic, along with experience managing global teams.

 

As CEO and co-founder of Strategic Discovery, a San Francisco­­–based consulting and technology company, Bendell successfully negotiated its acquisition in 2008 by FTI Consulting. He served as chief innovation officer with FTI Consulting until February 2016. Bendell is a seasoned impact investor whose personal impact themes include eldercare, plant-based food alternatives to factory farming, and business models across sectors that monetize data aggregation.

 

“The Toniic board was attracted to Adam’s previous success as a CEO, his track record of innovation, inspiring vision and drive for excellence—all balanced with a big heart,” said Lisa Kleissner, Toniic board chair. “We are confident that Adam has the skill, passion and vision to partner with our team, our members and our impact colleagues to take Toniic and the growing field of impact investing to a new level.”

 

“I am thrilled to have this unique opportunity to combine my experience in innovation and building businesses with my passion for impact investing,” said Bendell. “The field of impact investing is now irrevocably on the map, and Toniic is uniquely poised and ready to scale. Toniic has a major role to play across investor education, community building and capital deployment. The impact community looks to Toniic, one of the most trusted brands in the space, for leadership. Whether it’s for those of our members working to transition their portfolios to 100 percent impact investing, those who look to Toniic for opportunities to invest in direct deals and funds, or those just getting started in impact investing, Toniic sets the pace.”

 

Prior to working at Strategic Discovery, Bendell was president and co-founder of SV Technology, a knowledge-management software firm whose flagship product, LawPort, was acquired by SydneyPLUS International (now Lucidea). Before that, Bendell served as chief technology counsel at Gibson, Dunn & Crutcher LLP. He graduated from Cornell University, was a visiting student at the London School of Economics, and received his juris doctor from the University of Chicago Law School. He resides in San Francisco with his wife, Tracy.

 

Alison Fort will continue to serve as acting CEO of Toniic until July 1, 2016, when she will resume her leadership duties as Toniic’s managing director for EMEA.

 

About Toniic Institute

Founded in 2011, Toniic Institute is the global action community for impact investors, with members in over 26 countries. Toniic provides family offices, high net worth individuals, institutions and corporations with access to investment opportunities, tools and thought leadership as they grow their impact investing practices. Toniic leverages its global member expertise in impact investing to produce open-access e-guides on topics such as crowd investing, early stage investing, and impact measurement. Toniic ImpactU provides transformational learning opportunities for impact investing around the globe for both members and nonmembers. For more information, visit www.toniic.com.

 

Toniic Institute Announces New CEO

Adam Bendell, former CEO of Strategic Discovery and CINO of FTI Consulting, named to lead Toniic Institute

SAN FRANCISCO – The Toniic Institute, a non-profit global organization of impact investors, announced today its selection of Adam S. Bendell as the next chief executive officer, commencing … Read more