Methodology

A GIIRS Rating is comprised of a Fund Manager Assessment Rating and two Investment Roll-Up Ratings: an Overall Impact Business Model (IBM) Rating and an Overall Operations Rating.

The Investment Roll-Up Ratings are weighted averages of the portfolio companies' impact business model and operations ratings based on the amount invested in each company.

For example, the Overall Impact Business Model Rating for a fund that has deployed $10 million dollars across three portfolio companies would be calculated as follows:

Criteria to Get a GIIRS Fund Rating

  • Funds in Formation can become GIIRS rated by committing to being rated for the life of the fund. Until 25% of capital is deployed, initial GIIRS Fund Impact Rating Reports will only feature the fund manager's assessment score and each portfolio company will receive an individual company rating (no portfolio aggregation rating is generated).(1)
  • Actively Investing Funds can receive a GIIRS Fund Impact Rating once 25% of capital(2) is deployed. A typical fund is required to have at least 75%(3) of their portfolio companies complete the rating process in order to receive a GIIRS fund rating.
  • Fully Invested Funds can receive a GIIRS Fund Impact Rating using the standard fund rating methodology, though at least 80% of the total portfolio (in terms of capital deployed) must receive a company rating in order to receive a fund rating.

 

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