Measurement: 10 Years of Tracking Our Mission Investing and the Lessons We’ve Learned

Since 2004, we have pursued mission investments to further grantees’ work to build assets, wealth, and opportunity. A comprehensive case study conducted by Pacific Community Ventures (PCV) measured the social impact of the past ten years of our mission investments, from 2006 through 2016.

RESULTS

Social
Returns

(as of 12/31/15)

Job growth compared
to 5% for
US private sector
Invested in
20 companies
Living wages for all
employees of
portfolio companies
Supported over
1,700 jobs
Quality jobs with
health and
retirement benefits

Financial
Returns

(as of 12/31/2016)

INSIGHTS

CUSTOM FUNDS

IMPACT OBJECTIVES

MARKET EVENTS

Custom funds increase the ability to target regions and outcomes, but limit the opportunity to partner with other investors and can be difficult to invest.
Impact objectives should be defined prior to investment and be understood and agreed on by all parties.
Market events, like those resulting from the 2008 recession, significantly impact returns; diversifying across multiple managers and investment strategies reduces risk.

ACTION

We’ve taken what we learned to heart. The results and insights have led us to increase our commitment to mission investing. We’ve dedicated another $10M to PRIs and $30M to MRIs. We’ve also changed our investment approach:

Use Intermediaries
Instead of developing a custom fund, we’re investing through established managers and funds.
Expand Our Geographic Focus 
We’re expanding our focus to support businesses beyond our region, helping us meet our social impact targets and partner with other funders.
Define Social Impact Before Investing
We’re establishing targets at the outset to better achieve and evaluate success.