3. Construct your portfolio
Select impact investments that support your Theory of Change and align to the impact tools and time horizons that have been determined. Investment products need to represent and support the impact goals that have been articulated and there needs to be clearly defined mechanisms for how to measure their impact. Some common investment channels include:
Fixed income: Provision of debt capital to drive a specific outcome
Public equity: Very liquid investment option that allows for ESG integration and shareholder engagement
Private equity: Allows for focused thematic and catalytic investment
Real estate: Can facilitate positive impacts to communities and housing.