1: Hypothesize
Codify ideas around what the gap is, and how catalytic capital might help address it to advance a social or environmental goal.
Timespan: 2-4 months
Steps Prime takes
Goals/mission lock
Provide written template for investment managers to describe their impact hypothesis and how it aligns with Prime’s mission.
Team
Ensure goal alignment among investment managers, staff, and board.
Governance
Clarify decision-making processes
Educate investment managers about Prime’s governing and advisory committees
Sample questions we ask
Gaps faced by climate solutions
What gap(s) – financial or other resources – do you seek to fill with your fund?
How does this gap show up in your work today and what evidence can you share?
Why is catalytic capital needed versus government intervention, private grantmaking and/or other private investment?
Why is this the highest and best use of philanthropy right now?
Alignment of goals and values
What role do you envision Prime serving in the proposed fund throughout its lifecycle?
How would working with a nonprofit and its advisory committees advance your mission?
Why would you value Prime’s partnership in this fund versus another nonprofit partner?
How have you and/or your firm demonstrated alignment with Prime’s values of abundance, additionality, care, humility, and tenacity, as well as our emphasis on diversity, equity, and inclusion?
What do you view as your team’s unique strengths and how do these strengths further Prime’s mission?
Early ideas about the program itself
What is your target total fund size? What portion would be catalytic?
What underwriting criteria do you imagine for this fund?
Do you envision any companion nonprofit programming?
What do you see as appropriate performance metrics for this fund?