Measuring Impact: A Case Study of Impact Methodologies in the Nordic Private Equity Market

Abstract: We examine how actors in the Private Equity market define Impact, and how Impact assessments and methodologies are used in practice to source and underwrite investments. We use a case study to gain insight into Impact investing within the world of Private Equity. Our study finds that Impact investments are similar to traditional Private Equity investments. The main difference is that Impact investments tap into the sustainability megatrend with either an environmental or social objective. Impact is measurable through various metrics, ranging from qualitative to quantitative. Quantitative measures and scorecards are preferred to facilitate comparability across investments and funds. We conclude that the primary role of an Impact framework is to signal intentionality and authenticity.