Rethinking Responsible Equity Exits: A Call to Action for Impact Investors

This paper is a call to action for all impact investors to ensure their exits uphold the values they have championed throughout their investments. When it comes to impact objectives, the last stage – the exit – is far too often forgotten, or at best, given minimal attention. And yet, for equity investors, that last step can be as important as the initial investment, or the work done throughout the life of the investment. A bad exit could easily undo decades of social impact work.

This paper aims to provide a roadmap for investors committed to making a real difference and live by the motto “Do No Harm.” Here’s a breakdown of what the paper emphasizes:

1. Stay cool in hot markets: In bustling markets, the pressure to prioritize profits over people can be intense. This paper offers strategies to stay true to social missions even in the most competitive environments.
2. Know when to exit responsibly: Defining responsible exits isn’t always straightforward. The paper sets out clear guidelines to help investors navigate this crucial stage with integrity.
3. Take action, secure impact: It is not just about talk; the paper urges investors to take tangible steps to make responsible exits the norm. Collaboration and knowledge sharing are key to driving lasting change.