Performance sharing financial instruments for social impact

• Autor(a) principal: Griswold, Daniel
• Data de Publicação: 2018
• Tipo de documento: Dissertação
• Idioma: eng
• Título da fonte: Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos)
• Texto Completo: http://hdl.handle.net/10362/145761
• topic: Impact investment; Domínio/Área Científica: Ciências Sociais: Economia e Gestão

This thesis evaluates when and how performance sharing finance instruments (PSFI) can be valuable as impact-aligned finance instruments. The thesis first defines the domain of impact finance and evaluates existing theoretical models to measure tradeoffs between impact and return. It then defines impact-aligned financing across the dimensions of risk, return, and impact, to identify when PSFI and other financing instruments can be considered impact aligned. This is followed by an analysis of the domain of PSFI, focusing on a review of case studies of PSFI, to identify circumstances under which PSFI are most useful as impact-aligned financing instruments. Following this, different types of performance metrics and other design variables that can be used to structure PSFI are defined and evaluated to understand how they can be used to increase impact alignment. Based on this analysis, standard use cases for PSFI are identified, including uses to correct market failures and uses to increase impact alignment. Finally, an applied case study is presented, which proposes a PSFI structure to finance long term investment to improve productivity and incomes of the members of smallholder coffee farming cooperatives.