Mission Related Investments: Process and Tools
Mission Related Investment Process
This flow chart shows how our Foundation manages Mission Related Investments (MRIs). There are four process phases: Pipeline Generation, Deal Analysis & Decision, Implementation, and Monitoring & Reporting. Each phase identifies critical path action items and task ownership.
Mission Related Investment Process
Mission Related Investment Tools
Raúl Pomares together with Doug Bauer of Rockefeller Philanthropy Advisors and the KL Felicitas Foundation developed tools for supporting the due diligence for each investment category. A PDF version of the MRI Evaluator tool can be downloaded at the end of this page. We encourage other social investors to use this tool. If you are interested in receiving the source file, please contact info@klfelicitasfoundation.org.
The MRI Evaluator tool is designed to work in conjunction with a formal investment due diligence process. It allows a foundation to assess, document, and define roles for evaluating any given investment opportunity in the areas of:
- Investment structure, portfolio implications and financial performance reporting
- Alignment with Mission or Purpose
- Establishing Mission 'Impact' criteria
Social investors may be as detailed as they like in documenting the responses to the various questions. For examples of how we use the MRI Evaluator tool, please go to MRI Investment Section.
A scoring system is included for each question, allowing the social investor to establish a more objective framework for evaluating MRI investments. It is important to document a pass or fail scale for scoring results . We use a very simple scoring system of -1, 0, and +1 to determine if a given investment is either compliant, neutral, or not compliant with the various guidelines and objectives as expressed in the questions of the Evaluator tool. If an investment scores -1, an explicit exception will have to be made before moving forward.
For effective use of the tools, it is important to have a defined mission, a documented investment policy and portfolio objectives, an established investment due diligence process, and a commitment to Mission Related Investments.
© Raúl Pomares. All rights reserved. The MRI Evaluator tool is not intended for commercial use. Users may utilize this tool only for personal and private use. Please review our Terms and Conditions before downloading.