Measuring Impact
Apax Global Impact developed an impact toolkit using recognised industry standards with experienced partners. The result: two scores to measure and manage impact throughout the investment cycle.
Impact Threshold Score
Our first step in measuring impact is our impact threshold score, which helps our team qualify an opportunity by ensuring the company drives impact outcomes that are aligned to our fund objectives.
The score is comprised of six components - "what," "who," "contribution," "risk," "how much," and "VCP alignment" - totalling 100 points. We start with five dimensions from the Impact Management Norms, and we added a sixth component on scale and depth of impact to make sure the company's business plan to drive value also drives impact. To be included in the fund, every company must achieve a threshold score of at least 60 across the criteria.
Impact Improvement Score
Once we have invested in a company, we develop a three-part impact improvement scorecard to track a company's progress in terms of the impact the company drives through its product or service, as well as internal operating sustainability improvements.
We measure this through Scale and Depth KPIs, which describe how the products and services can drive more impact over time. The sustainability component uses four best practice KPIs to capture how well the company is being run.
We believe the impact improvement scorecard is a joint plan with companies for how we can drive more impact through growth and product improvement, and it also ties our own compensation to strictly measurable impact outcomes.
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