Impact investors exit differently. Investors’ Circle wants to show you how

What’s the right way to say this? Impact investors are a strange breed. It’s far from a bad thing.

Impact investing is on the rise in Philadelphia. More venture capitalists are wanting measurable social results with their financial returns. A report from Wharton Social Impact Initiative last year analyzing 52 exits showed them that it can be done.

But exit strategies are different for impact investments, and there are a bunch of different approaches to the way impact investing deals are being structured.

For instance, using strategies such as mezzanine debt, in which the investor claims a company’s assets from the onset, impact investors are able to get their financial returns without impeding a company’s ability to get them those mouth-watering social returns.

“If the company can better achieve positive impact by avoiding exit options that provide financial returns but compromise the beneficial mission, we need to find an alternative to eventually return cash to investors so they can seed a new startup,” said Investors’ Circle Philadelphia principal Annarie Lyles. “So, for example, if a company wants to eventually be employee-owned, one might structure a deal where the investors will be gradually bought out with future revenues.”

Learn more from Lyles and Investors’ Circle Philadelphia on Oct. 19 as the impact investor network hosts a case study-based workshop that will explore exit strategies for impact investors.

Registration is free for Investors’ Circle members and $50 for non-members. Check the link below for details.