Investment Process

Impact Ventures UK’s investment process can take between 3 to 6 months before the close of a deal. Social enterprises under consideration for IVUK investment can be better prepared for this diligent process by reviewing this section. Interested social enterprises should make sure they have a strong investment proposition and business plan before making contact with Impact Ventures UK.

In the early phase of IVUK’s candidate review, we seek to ensure that the social enterprise has “vision fit”: that means IVUK ensures that the business seeking funding is aligned with our core mission, as well as our values and goals. Because IVUK places equal emphasis on scalability as well as social impact, we also seek to determine sustainable and robust business models.

At the same time we conduct a comprehensive assessment of an organisation’s social impact. First we ensure that the core focus of your business is to benefit disadvantaged groups in the UK, addressing pressing UK social issues including but not limited to homelessness, mental illness, unemployment, children and family welfare, aging and social justice.

If IVUK and the social venture choose to proceed. This involves a fact sheet of the social enterprise under consideration—an internal high-level document distributed and discussed with the LGT Impact global team. This is only done when we believe this is a viable investment to see for further due diligence. For more about this phase, please visit the Enquire section.

Preliminary Review

After the initial discussion within LGT Impact’s global team based on the fact sheet, the preliminary review phase starts, the outcome of which is a memo presented to IVUK’s Investment Committee.

This phase involves a deeper evaluation of the business and social impact plan as well as management meetings and company visits.

The social enterprise must be able to successfully pass a capabilities and risk assessment, and meet an internal due diligence checklist.

Deal Execution

Completion of the preliminary review by the IVUK team then leads to presentation to the Investment Committee, which needs to approve the review before moving into deal execution. The deal execution involves continued intensive due diligence and site visits, meetings with and assessments of core business activities including sales, finance, and other areas. The IVUK team conducts a full social impact analysis and determines the social impact KPIs.

This phase results in an investment memo that is again presented to the Investment Committee for approval in order to close the investment.

The entire investment process from start to close can take from 3 to 6 months. Candidates go through a rigorous process of due diligence before a deal is made.

A multi-step investment process focusing on deep analysis to select the best organizations was applied thousands of times.

IVUK Multi-step investment process table