Impact Investment Funds: Legal Structure, Key Documents, Compliance and Tax Considerations; Downstream Lending Programs

The Global Impact Investing Network defines impact investing as "investments made with the intention to generate positive, measurable social and environmental impact alongside financial return." Impact investing can be made in both developing and established markets. The capital from impact funds has been allocated to address many social concerns like sustainable agriculture, clean energy, affordable housing, microfinance, healthcare, education, and conservation. 

Impact investment funds are typically structured as either a limited partnership or a limited liability company. When structuring an impact fund, counsel must consider the unique tax and compliance considerations of these investment funds. Also, fund documents should tie financial returns to measurable impact while also granting fund managers flexibility to adjust their strategies to accommodate changes in market conditions. 

Listen as our authoritative panel explores the latest trends and developments in impact investment fund formation and provides guidance for structuring and documenting these funds to address key compliance and tax considerations. 

I. Overview and history of impact investment funds

II. Types of investors and their motivations and objectives: social good and financial returns

III. Difference between impact investing and socially responsible investing

IV. Fund types

V. Legal structure

VI Key fund documents and terms

VII. Compliance and tax considerations

VIII. Timelines

IX. Downstream impact lending programs

X. Impact of federal and state contraction of ESG standards on impact funds: future opportunities and challenges

XI. Practitioner pointers and key takeaways

The panel will address these and other key considerations:

• What is the history and background of impact investment funds?
• What are some unique structuring issues of impact investment funds, and how can these issues be addressed in key documents?
• What are the downstream lending opportunities with impact funds?
• What are the implications of recent federal and state contraction of ESG standards on impact fund investing?