Case Study of an African Private Equity Client: Impact Strategy and Theory of Change
Tags
Impact Strategy
Theory of change
African Private Equity
Vireo worked together with an African Private Equity client to co-create an impact strategy and associated theory of change. This work involved a review of sector best practice, interaction with relevant stakeholders and focussed workshops with key members of staff to identify appropriate areas of impact, measurement KPI’s and the desired change envisaged.
About Project
The need for integrated impact strategies in private equity investments has become increasingly vital as stakeholders demand not only financial returns but also social and environmental accountability. Recognizing this, our client sought to pioneer an approach that could serve as a model within the African market.
Objective and Methodology
The primary objective was to develop a tailored impact strategy that aligns with the client's investment philosophy and operational regions, focusing on generating measurable social and environmental impacts alongside financial returns.
Our approach included:
Sector Analysis: Conducting a thorough review of the current trends and best practices in ESG within the relevant investment sectors.
Stakeholder Engagement: Facilitating dialogues with key stakeholders, including investors, community representatives, and industry experts to gather diverse insights and ensure the strategy's relevance and inclusivity.
Workshops: Organizing targeted workshops with senior management and key team members to identify impact areas, establish KPIs, and develop a theory of change that articulates the intended outcomes and the means to achieve them.
Results
Impact Strategy Development
The collaboration led to the creation of a comprehensive impact strategy that includes:
Defined Impact Areas: Identification of specific areas where the client can have the most significant positive impact, such as renewable energy, sustainable agriculture, and community development.
KPIs Establishment: Development of quantifiable performance indicators to monitor and evaluate the impact of investments on environmental and social factors.
Theory of Change: A clear framework outlining the expected outcomes, the actions required to achieve them, and the metrics for measuring success.
