February 2018
Case
HBS Case Collection

Root Capital and the Efficient Impact Frontier

By: Shawn Cole and Caitlin Reimers Brumme

Format:Print
| Language:English
| Pages:13

Abstract

In 2015 Root Capital, a pioneer in the impact investing space, began to explore how to more systematically integrate impact and financial management. After much deliberation, Root Capital landed on ex-ante rating system for any potential investment that produced a proprietary expected impact. With this tool in place, Root Capital had an integrated picture of impact and financial performance for a loan and across its portfolio. The next question Root capital faced was how to use this tool to optimize impact and financial performance going forward. This case was designed to be taught alongside Root Capital’s Efficient Impact Frontier Simulation exercise.