Buckhill Capital will be accountable for the impact of investments by require passing an impact test in order to receive 20% carry or the 20% must be donated to charity.
Buckhill Capital will have an impact test in the legal documents of all investments going forward. With legal counsel for Morrison & Foerster, Buckhill has created a new legal investment term, the Carried Interest by Verified Impact Calculations (CIVIC). The CIVIC links a fund’s carried interest to quantifiable impact metrics, and thus has the potential to create billions of dollars of incentives for institutional investment managers to pursue impact goals alongside financial returns. This project is a finalist for NYU’s Grunin Prize for Social Entrepreneurship.
Buckhill Capital is committed to creating a positive impact with its investments. In Buckhill’s fund documents is a term called Carried Interest by Verified Impact Calculations (CIVIC) that requires portfolio companies to report impact metrics against targets. If a portfolio company fails the impact test, Buckhill’s 20% profit incentive is donated to a non-profit to ensure that unsuccessful investments still make a positive impact. Inclusive Capital inspired this commitment to start annual impact metrics in 2024 and sets a new standard for socially responsible investing to be financially accountable for the impact of investments