Global Partnerships, a non-profit impact-first investment fund manager, focuses on alleviating poverty by supporting financial inclusion. Recognising the multidimensional aspects of poverty, the organisation invests across several sectors, including health, education, and energy. Their IMM framework prioritises measurable outcomes, with key objectives to broaden opportunity, deepen inclusion for underserved groups, and create sustainable impacts. With over USD 200 million under management across six funds, Global Partnerships aims to balance social impact and capital preservation.

Development outcomes

Development outcomes are defined as long-term impacts, such as economic empowerment and poverty alleviation. Global Partnerships aligns its investments with these outcomes to ensure substantial benefits for targeted communities, particularly women and rural populations. The emphasis on client and community-level impacts reflects the organisation’s commitment to measurable contributions toward sustainable development goals (SDGs). Notable outcomes include enhanced financial stability, increased access to services, and improved resilience against economic shocks.

Intermediate outcomes

Intermediate outcomes, such as financial wellbeing and increased agency, serve as early indicators of progress toward long-term development goals. Global Partnerships tracks these outcomes through regular data collection, using tools like 60 Decibels Client Surveys. This approach allows them to assess clients’ resilience and access to resources over shorter periods. Metrics such as client retention, uptake of financial services, and client feedback help to gauge success and adjust investment strategies as necessary.

Outcomes-focused IMM

Global Partnerships’ outcomes-focused IMM integrates data into every stage of the investment process. The IMM process involves evidence-based investment theses, rigorous impact due diligence, and continuous monitoring. Their IMM model encompasses both positive outcomes and potential risks, addressing issues such as over-indebtedness and impact washing. For example, financial due diligence is supported by adherence to international standards, such as the Client Protection Principles and IFC Performance Standards, to ensure ethical practices.

Global partnerships’ mission and investment philosophy

Global Partnerships aims to expand economic opportunities through impact-first investment, prioritising social returns over financial returns. They fund initiatives that support female entrepreneurs, rural communities, and marginalised populations, primarily through debt financing. For instance, around 96% of funds are allocated to financial service providers (FSPs) in opportunity areas, including microloans and financial literacy training. Their mission-driven approach targets financial inclusion while addressing broader poverty-related needs.

Integrating outcomes data throughout the investment cycle

Outcomes data underpins investment strategy and decision-making. Each stage of the investment cycle, from initial screening to portfolio management, incorporates outcomes-based metrics. Global Partnerships employs tools like poverty maps and demographic data to understand who is served, what is delivered, and why it matters. For example, a dual-track approach in the Women-Centered Finance with Education initiative addresses different poverty levels in various regions, tailoring financial literacy and loan products to local needs.

Developing evidence-based initiatives as an investment strategy

Global Partnerships structures its investment initiatives around targeted client profiles and outcomes. These initiatives rely on a mix of primary research, data analysis, and insights from sector experts. For instance, initiatives like Productive Asset Finance and Microinsurance address specific client needs and align with evidence-based outcomes, such as improved income stability. This rigorous, data-driven approach to investment enhances alignment with poverty alleviation goals.

Constructing portfolios with evidence-based initiatives and impact due diligence

Portfolio construction begins with assessing the impact alignment of social enterprises, prioritising positive outcomes and mitigating risks. An intersectional analysis helps evaluate multiple marginalisation factors, including gender and geography. By focusing on client outreach data, such as the percentage of female or rural clients, Global Partnerships tailors investments to achieve their intended social impact. This assessment process, based on evidence and best practices, helps select investments that meet both financial and impact criteria.

Monitoring and engaging with social enterprises to drive stronger outcomes performance

Through ongoing partnerships with investee organisations, Global Partnerships facilitates outcomes management and provides strategic support. Annual data requests allow for consistent tracking of who is served and how effectively. Additionally, deeper impact engagement, such as with 10+ social enterprises annually, helps refine outcomes using tools like 60 Decibels surveys. This approach enhances accountability and aligns investment strategies with evolving client needs and outcomes performance.

Using outcomes data to refine strategy, inform board oversight and enhance accountability

Data from client surveys and secondary sources aids in refining investment strategies, tracking performance, and providing transparent reporting. Quarterly board updates include metrics on outcomes such as quality of life improvements, which helps guide capital allocation. By integrating outcomes data, Global Partnerships strengthens its ability to address sectoral challenges and adapt initiatives for enhanced impact across different regions.