In the webinar it is noted returns should be appropriately risk/reward focussed in-keeping with the requirements of the RFP i.e. achieving the youth employment metrics. Is there any range of financial and commercial ROI metrics that are required? How will the proposals ‘saleability / attractiveness to investors’ be evaluated in this regard given some impact investors similarly do not set financial metrics?
There is no stated range, we aim to get input from the fund managers as to what they expect to be realistic given their investment thesis (geography, sector, stage etc.), yet the expected return (Gross and net IRR) and cost metrics (management fee etc) need to be stated. The saleability scoring will be based around the investment thesis and how this would align/or not to the targeted investor network, such as the required risk return, cost, sector, impact metrics, timing etc.