JBMP Social Impact Partners

The purpose of these stages is that all work (except for 3rd party audit) must be done within the Firm. No advisory from outside firms. This is non-negotiable. That is why I want to only work with the best of the best.

ATTORNEYS, LPs, STRATEGIC PARTNERS, & CPA: Fund Structure

• Legal Entities: Common structures for funds include Limited Partnerships (LPs) and Limited Liability Companies (LLCs)

• Tax Implications: Consider the tax implications for both the fund and the investors

COMPLIANCE OFFICER: Compliance

• Securities Regulations: Comply with regulations such as the Securities Act of 1933

• AML and KYC: Implement Anti-Money Laundering (AML) and Know Your Customer (KYC) procedures to verify the identities of investors and prevent financial crimes

ATTORNEY, LPs, STRATEGIC PARTNERS, & CPA: Fund Documents

• Private Placement Memorandum (PPM): A comprehensive document that outlines the fund’s investment strategy, terms, risks, and management

• Limited Partnership Agreement (LPA): The LPA defines the roles and responsibilities of the GP and LPs

• Subscription Agreement: This is the contract between the fund and investors detailing their commitment to invest and agreeing to the terms outlined in the PPM and LPA

LPs & STRATEGIC PARTNERS: Capital Raising

• Initial Fundraising: Start by identifying lead investors who can commit significant capital. Their commitment can help build credibility and attract additional investors

• Marketing: Develop a marketing strategy to reach potential LPs through various channels

INVESTOR RELATIONS: Marketing Materials

• Pitch Deck: A presentation that should include your fund’s mission, investment strategy, market opportunity, team, and financial projections

• Data Room: A secure online repository where potential LPs can review detailed information about the fund

INVESTING RELATIONS: Networking

• Industry Events: Attend conferences, seminars, and networking events to meet potential investors and industry experts

• One-on-One Meetings: Schedule meetings with potential LPs to present your fund’s opportunity and address their specific questions and concerns

PHDs IN INTERDISCIPLINARY STUDIES: Investment Ethics

• Ethical Guidelines: Develop and adhere to a code of ethics that outlines acceptable investment practices and aligns with your fund’s mission

• Social Responsibility: Ensure that investments are consistent with the fund’s ethical standards and contribute positively to society

RESEARCH COORDINATOR: Conflict of Interest

• Disclosure Policies: Implement policies for disclosing potential conflicts of interest to maintain transparency and integrity in decision-making

• Management Procedures: Establish procedures for managing conflicts of interest

ACCOUNTING & CPAs: Fund Administration

• Accounting: Implement accounting systems to manage fund performance, capital calls, and distributions

• Compliance Monitoring: Ensure ongoing compliance with legal and regulatory requirements through periodic audits and reporting

ANALYSTS, ASSOCIATES, GPs: Investment Process

• Deal Sourcing: Develop a pipeline for sourcing potential investments through networking, research, and industry contacts

• Due Diligence: Establish a rigorous due diligence process to evaluate potential investments

• Investment Committee: Form an investment committee to review and approve investment decisions

TALENT TEAM: Team Hiring

• Key Roles: Identify and recruit key team members

• Training: Provide training and development opportunities to ensure that team members are equipped to perform their roles effectively

ANALYSTS, ASSOCIATES, LPs, GPs, STRATEGIC PARTNERS: Impact Strategy

• Goals and Objectives: Define clear, measurable impact goals that align with your fund’s mission

• Monitoring: Implement systems to track and measure impact throughout the investment lifecycle

INVESTOR RELATIONS & GPs & STRATEGIC PARTNERS: Partnerships

• Strategic Alliances: Collaborate with nonprofits, research institutions, or other organizations that can enhance your fund’s impact

• Collaborations: Engage with industry initiatives or networks focused on impact investing to stay informed and connected

INVESTOR RELATIONS: Investor Relations

• Regular Updates: Provide investors with regular updates on fund performance, including financial returns and impact outcomes

• Transparency: Maintain transparency about fund operations, performance, and any challenges encountered

PUBLIC RELATIONS: Public Relations

• Media Outreach: Develop relationships with media outlets and journalists to gain coverage for your fund’s activities and achievements

• Thought Leadership: Publish articles, white papers, or participate in speaking engagements to establish credibility and showcase your fund’s impact

MIDDLE OFFICE SWE: Data Management

• Investment Platforms: Use technology tools to manage investments, track performance, and conduct due diligence

• Data Analytics: Implement tools for analyzing financial and impact data to inform decision-making and reporting

ANALYSTS, ASSOCIATES, GPs: Investment Platform

• Deal Sourcing: Utilize platforms for sourcing and managing deals

• Portfolio Management: Use portfolio management software to track the performance of your investments and manage ongoing relationships with portfolio companies

ANALYSTS, ASSOCIATES, GPs: Exit Strategy

• Exit Routes: Define potential exit strategies, such as IPOs, mergers, or acquisitions

• Value Creation: Focus on creating value in portfolio companies to enhance exit opportunities

FOUNDER & GPs: Growth Plan

• Scaling: Develop a plan for scaling your fund, including increasing capital commitments, expanding into new markets, or diversifying your investment focus

• Innovation: Continuously assess and adapt your strategy to address evolving market trends and emerging opportunities

ASSOCIATES, GPs, ECONOMIC RESEARCHERS, CONSULTANTS: Investment Risks

• Market Risk: Address fluctuations in market conditions through diversification and hedging strategies

• Operational Risk: Mitigate risks associated with portfolio companies’ operations through thorough due diligence and ongoing monitoring

• Regulatory Risk: Stay informed about regulatory changes that could impact your investments and adapt your strategy as needed

ASSOCIATES, GPs, ECONOMIC RESEARCHERS, CONSULTANTS: Fund-Specific Risks

• Fundraising Risk: Manage challenges in raising capital by developing a diversified fundraising strategy and maintaining strong investor relationships

• Impact Achievement Risk: Address difficulties in achieving impact goals by setting clear objectives, implementing robust measurement systems, and adjusting strategies based on performance data

GPs, INVESTMENT COMMITTEE, ADVISORY BOARD: Governance Structure

• General Partner: Responsible for managing the fund, making investment decisions, and handling operations

• Investment Committee: Group of senior advisors or partners that reviews and approves investment decisions. Ensure that the committee is diverse and experienced

• Advisory Board: A group of experts that provides strategic guidance and advice on fund management, impact strategy, and industry trends

INTERNAL & CONTRACTED 3RD PARTY AUDITORS: Oversight Mechanisms

• Regular Reviews: Schedule periodic reviews of fund performance, including financial metrics and impact outcomes

• Audits: Conduct regular audits by an independent third party to ensure compliance with legal and regulatory requirements and verify financial reporting

RESEARCH COORDINATOR: Diverse Funding Sources

• Grants and Government Funding: Explore opportunities for non-dilutive funding through grants or government programs that support impact investing

• Impact Bonds: Consider innovative funding mechanisms like social impact bonds or development impact bonds to attract additional capital

THE FIRM IN GENERAL: Long-Term Relationships

• Value-Added Services: Provide investors with value beyond financial returns

• Feedback Loop: Create channels for regular feedback from investors to understand their needs and expectations and address any concerns

STRATEGIC PARTNERSHIP TEAM: Collaborations

• Nonprofits and NGOs: Partner with organizations that have expertise in areas related to your fund’s mission

• Industry Groups: Engage with industry associations and networks to stay informed about trends