Aligning Vision with Impact: A Reflection on Developing Patria Investments' Impact Framework

Our client is a leading Latin American alternative investment platform with over 35 years of history and managing over USD 40 billion in AUM. Despite its consideration in investment generating social, economic, and environmental benefits, they do not yet have a structured impact framework to systematically capture and integrate impact considerations into new and future investment decisions. Our team was tasked with creating an impact framework to address this gap, focusing on establishing clear management indicators that align with the company’s ambition to drive positive impacts across Latin America.

Identifying Scope and Planning

The initial phase involved defining the project's scope and planning. I learned the importance of a thorough understanding of their operations across its asset classes and the critical need for a strategic framework to guide investment decisions with an impact lens. The challenge was not only in defining the problems and solutions but also in identifying key stakeholders, including the client’s recently established ESG team. 

Structuring the Plan

In structuring the plan, our team initiated a detailed survey and conducted individual interviews with key stakeholders. This approach was designed to gather comprehensive data and insights into their impact preferences and perspectives. Through these engagements, we aimed to understand the nuances of their existing impact initiatives and stakeholders' expectations, enabling us to tailor the impact framework accordingly. 

Facing Bottlenecks

At this stage, the project hit a big roadblock. The ESG lead expressed concern about the sensitivity of our survey questions. While young professionals are enthusiastic about impact investing, the management team and partners remain skeptical, which stems from our client’s core investment philosophy - fundamental investing. This divergence makes it difficult to set ambitious targets and requires a realignment of our goals. 

Response & Learning 

1. Language & wording 

In response, we worked closely with Carlo to refine the wording of the survey, aiming to align it more closely with investor-friendly language, while maintaining the essence of our impact assessment objectives. It taught me the importance of careful wording and framing, allowing me to learn how language can build a bridge between different perspectives within a company and pave the way for more inclusive impact investing discussions. 

2. Team Collaboration and Communication

Collaboration and communication within our team was critical to navigating the complexity of this project. Through this process, I learned the importance of each team member's unique perspectives and skills. We use a rotational model to ensure everyone has a voice, contributes equally, and fosters a vibrant and inclusive environment. This experience reinforced my belief in the power of teamwork and effective communication, and how different perspectives can come together to solve complex problems and achieve common goals.

3. Project management 

Reflecting on the impact of our client’s investments and the management of the impact framework, I understand the critical nature of project management in driving successful outcomes. The progress of the project, especially the development of the Gantt chart and our iterative approach to collecting data, building the framework, and improving our strategy based on stakeholder feedback, is critical. Gantt charts help visualize our project timeline and help us manage tasks efficiently.