• Christopher Kuchanny

    Impact Investor & Philanthropist
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  • About Me

     

    In 1998, Christopher Kuchanny started working as a proprietary trader in the equity derivatives department of the investment banking unit of the third-largest Dutch bank, ABN AMRO Bank N.V.

    He worked at the London office of ABN AMRO Bank for five years. His first job was as a Special Situations Proprietary Trader. In this job, he was in charge of building and managing a portfolio of investments for special situations. He used arbitrage, event-driven, and other strategies to make a great return on capital.

    By 2003, he had started a new trading strategy and been given a new job title: Head of Structured Equity Proprietary Trading. This meant he was in charge of all parts of the business, such as setting up a broker network, building models, executing trades, and looking for new ones.

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    Read More : https://chris-kuchanny.medium.com/

  • Blog

  • What Exactly Are Social Investors?

    Published on : 02-28-2023
  • Social investors want to have a good influence on the world by investing in socially aware businesses. While making investment decisions, they consider environmental, social, and governance (ESG) factors.

    An increasing number of social entrepreneurs and investors recognize that all social enterprises may provide financial returns that make them appealing to the proper investors. These innovative techniques have the potential to narrow the financial-social return gap and increase funding for social entrepreneurship.

    Social investors make investments in businesses that benefit the community. They may invest in a firm reducing its carbon impact or enhancing access to high-quality healthcare for the underprivileged.

    A socially motivated investor provides a low-interest loan or recoverable contribution to a charity at the far left end of the spectrum. A financially motivated strategy, on the other hand, results in an equity investment in a public firm with integrated CSR practices.

    Social impact investment is a burgeoning and popular industry. It provides several alternatives, such as mutual funds, robo-advisors, and crowd or community investing.

    Social investors are individuals who make investments in businesses that have a good influence on the community. They also have a long-term view and recognize that financial gains may be obtained by investing in firms that will have a long-term influence.

    There are several distinct forms of social investment. They include venture philanthropy, impact investing, and corporate social responsibility.

    Several kinds of social investment can aid in poverty alleviation, capital access expansion, and economic development. They may also be used to promote environmental sustainability and green business.

    Some social investors evaluate their portfolios using ESG (environmental, social, and governance) risk-rating businesses. These grading agencies examine organizations' behaviours, such as environmental stewardship and labour treatment.

    Some social investors feel that firms believed to harm society, such as cigarette producers or companies that conduct business in countries with insufficient human rights, should not be invested in. They also avoid companies that are not open about their corporate ideals or are known to be destructive, such as weapon makers.

    Socially Responsible Investment(SRI) entails scrutinizing a company's activities before investing money. This involves screening for potentially dangerous items, such as cigarettes, and industries violating environmental, human, and corporate rights.

    Whether you're looking for a new job or want to expand your current competence, social investing is a developing field. They provide you with the opportunity to invest in firms that have a beneficial influence on society, allowing you to make a difference while also profiting financially.

    Investors are also investing money in solar and renewable energy firms, which are growing due to greater awareness about sustainability. Furthermore, medicinal marijuana is gaining popularity due to shifting rules and the promise of clean technology.

    Impact investing is a socially responsible investing that prioritizes environmental, social, and corporate governance problems and financial gains. They are famous for people who care about the environment or social justice concerns such as racial and gender diversity.

    Social investors are a burgeoning industry that caters to a wide range of talents and interests. Combining your desire for social change with a financial gain is an excellent method.

    As an equities research associate, you will begin your career with a socially responsible investing business or fund. This comprises studying securities data and assisting fund managers or senior analysts in selecting the finest sustainable mutual funds or ETFs for your portfolio.

    A social investor can offer various financial options to social companies and groups, including low-interest loans, recoverable grants, and longer-term and more flexible capital investments. By providing this form of finance, impact investors may assist social and environmental firms to grow or scale their operations in ways that a private investor would not be able to.

    The first step toward a career in socially responsible investment is to determine your priorities. Finally, pick a goal and consider what kind of investments will help you achieve it.

  • Which three concepts make up ESG?

    Published On: 02/23/2023
  • A firm's environmental and social impact is used to assess its ESG performance. It is also evaluated based on how well it oversees governance.

    Firms with robust ESG strategies are well-equipped to navigate and manage upcoming difficulties. In the long run, this can boost operational effectiveness and cut expenses.

    ESG is a framework for evaluating how a company manages the opportunities and risks of shifting market and non-market environments. Environmental effects, societal concerns, and governance principles, including openness in the boardroom and corporate conduct, are among them.

    Risk management is a top concern for many businesses today, particularly in regions where government action is a worry. Governments may utilize ESG to reduce regulatory pressure and safeguard commercial interests, for instance, as they have expanded their monitoring of the environmental impact of enterprises.

    Robust ESG strategies will give companies a competitive edge and enhance their reputation as ethically responsible businesses as ESG develops and becomes more critical to investors, customers, and communities. They may better predict what the future holds for their operations, goods, and services.

    It's critical for enterprises to have the appropriate tools in place to support and facilitate the ESG plans they have developed. Lean digital technologies that help compliance teams create valuable reports and give insight into crucial areas of concern, such as environmental effects, can be among them. To help shareholders and other stakeholders understand the company's ESG performance, the data can also be used in reporting to them. These technologies are adaptable to the changing regulatory environment and data complexity.

    ESG is a set of guidelines businesses can employ to balance their financial and economic performance and social and environmental concerns. Building trust with staff, clients, partners, and the environment enables enterprises to enhance their operations and positively impact the world.

    Environmental, Social, and Governance (ESG) are the three pillars of the framework (G). Environmental concerns focus on a company's energy use, waste management, pollution, and carbon emissions. Similarly, the social pillar investigates how a business interacts with suppliers, local communities, and employees.

    Investors are seeking businesses that prioritize and disclose ESG problems more and more. People prefer to do business with companies that actively work to lessen their carbon footprint.

    Investors also look for social pillars, which demonstrate how a business treats its staff, clients, and suppliers. This covers diversity, inclusivity, respect for human rights, and worker health and safety.

    For instance, the Department for Employment and Pensions in the UK has established a task group to track the social component of ESG investments made by pension systems. It will create criteria, guidelines, and benchmarks to evaluate the social impact of pension funds' investment choices.

    Governance includes a company's internal operations, controls, processes, accounting and reporting standards, and corporate behavior. Conflicts of interest, bribery and corruption, anti-money laundering, data privacy, and other issues fall under this category.

    It also considers how the business treats its workers, clients, and suppliers and the neighborhoods where it conducts business. Investors prefer to support companies that uphold ethical business practices and have a beneficial social impact.

    The social pillar of ESG examines how an organization engages with its stakeholders, including its stockholders, employees, renters, neighbors, suppliers, and charitable organizations. This includes how a business treats its staff, guards against discrimination, and fosters a productive workplace environment.

    Employees must feel comfortable and healthy at work, which will help you get the most out of them. You can show that you prioritize your employees by implementing important safety initiatives and maintaining an extensive training library.

    Depending on your objectives and the amount of structure you require, you may go through multiple different governance structures as your organization expands. You can't undervalue how crucial strong governance is to the long-term success of your company, even if it might be intimidating and time-consuming. You can save money and maintain your reputation if you handle it correctly.

  • What Are the 5 Impact Dimensions?

    Published On: 02/08/2023
  • Focusing on both an organization's positive and negative effects on both people and the environment, impact management is a discipline.

    Impact measurement is a complex and ongoing process, particularly for new businesses.

    Depending on the ultimate goals you're trying to achieve, impact measurement may take longer to produce results than metrics and attribution.

    The impact is modifying a situation resulting from a course of action or intervention. It may be favorable or unfavorable, desired or undesirable.

    Setting goals, creating new programs and obtaining funding all depend on an organization's ability to measure its impact. Engaging with external stakeholders and maintaining accountability within your organization are also beneficial.

    To continuously develop and improve your impact, measuring impact must become a routine process ingrained in your organization's culture. This will keep you in the public eye and help attract funding, new workers, and volunteers.

    The Impact Management Project (IMP5 )'s dimensions of impact offer an excellent framework for organizations to understand how their work has an impact. They define an outcome and its components, including who experiences it, how much of it is experienced, the contribution of an enterprise to the outcome, and the possibility that it won't have the intended effect.

    Organizations can ensure they're getting the most out of their impact efforts and aren't wasting money on things that don't advance their work by getting a handle on these five metrics. To make sure your organization is positively impacting the world, they can also assist you in setting goals, creating new programs, and obtaining funding.

    Determining your impact is one of the initial steps in measuring it. Setting a budget or goal for your upcoming program year and defining your mission, vision, and values can help you achieve this. Making informed decisions and making the most of your limited resources will be easier if you clearly know what you want to achieve.

    Finding and monitoring the milestones that matter most to your stakeholders is the best way to gauge your success. This can be done in various ways, such as by carefully assessing your prior successes, setting new objectives for the future, and developing a sound data collection strategy to track development over time. The results of these initiatives will directly impact your company's financial health and the welfare of its clients.

    Examining the contribution margin is a common way to gauge a product's contribution. This metric displays the revenue after subtracting variable costs, which can be used to pay fixed costs and produce a profit.

    It is possible to determine the contribution margin per unit or the entire company. Depending on the requirements of the business, it can also be expressed in terms of dollars or as a percentage.

    Businesses can use this metric to quickly determine their break-even point, which tells them how many units they must produce and sell before they start to turn a profit. Because it allows managers and owners to see how different sales levels affect their profitability, it may also be helpful for production planning.

    The definition of the word risk varies depending on who you ask. It can also refer to various risk management techniques that calculate the financial impact of a risk event or determine a confidence interval for the likelihood of a particular outcome. To mathematicians, it can refer to the historical volatility of returns measured by the standard deviation or beta.

    Risk can be divided into two main categories: systematic and unsystematic. Unsystematic risk is unique to a company, industry, or sector, whereas systematic risk impacts all investments.

  • What are the 3 key elements of impact investing?

    Published On: 01/24/2023
  • When we talk about impact investing, there are three key elements that we need to think about. These are data, intent, and financial return. This article will examine these elements and how they affect investment decisions.

    Regarding impact investing, data is one of the critical elements. Impact investors require access to reliable data. Often, they need help finding deals that meet their criteria.

    Luckily, the field of impact reporting is gaining more attention from the investment community. This is primarily due to the growing number of donors and investors integrating impact investing into their portfolios. In addition to these factors, the millennial generation is making it easier to find innovative ways to achieve social impact.

    There are a variety of data sources that can be used to measure impact. Standard methods include economic analysis, which can help determine the costs associated with resource allocation decisions. Often, there is a need for qualitative data, which can clarify the role of value creation activities, the impact of investor capital, and how stakeholders see the impact.

    The Global Impact Investing Network (GIIN) is an organization that has developed a set of Impact Reporting and Investing Standards (IRIS). Using IRIS, an investment can be evaluated to determine its impact.

    Impact investing has become a hot topic amongst institutional investors. Generally speaking, an impact investment is a business venture that is designed to generate financial returns while achieving social or environmental objectives. Aside from the financial return, it may also be prepared to provide other benefits, such as reducing risk, improving efficiency, and improving the quality of life.

    Many types of impact investments, including socially conscious financial services firms, offer the opportunity to participate in this growing trend. As such, it is essential to make informed investment decisions. However, impact investing is a complicated beast, which makes it difficult to determine the best way to proceed.

    To find the right mix for your portfolio, it is essential to identify your priorities before starting your research. Ask your fund manager about what the fund is currently pursuing in impact-related activities. These can include evaluating how an investee uses the money in a given investment or investigating if the company has goals beyond delivering a financial return.

    Impact investing is a powerful strategy that allows investors to invest socially responsibly while generating financial returns. The financial performance of impact investments is a growing interest area among institutional investors. These investors include banks, private foundations, hedge funds, and pension funds.

    Impact investing can be used to complement a traditional philanthropic approach. As more foundations shift their assets to charities and other impact investing vehicles, the number of investors will continue to grow.

    Impact investments seek to generate social, environmental, and economic impact. They may target specific social problems, such as poverty alleviation or education. In addition, they can produce positive change in the communities where they operate. For example, the Bill and Melinda Gates Foundation uses program-related investments to scale its social enterprise portfolio that benefits the poor.

    These investments are typically below-market rates. However, some impact investors seek higher returns by balancing their portfolios across asset classes. Typically, the top quartile of impact funds has an internal rate of return of 9.7 percent. This is in line with the average return on the S&P 500.

    Alignment with the UN's Sustainable Development Goals is crucial to impact investing. It has the potential to accelerate global progress. More than half of disclosure statements cite alignment with SDGs. And more resources are being put behind the goals by investors and private donors.

    Impact investors target the SDGs to drive change and achieve financial, environmental, and social objectives. They can also train businesses on how to meet SDG targets. Creating an SDG-aligned database is one way to do this. The United Nations could lead an effort to create a more comprehensive one.

    While it may be daunting to start aligning with the SDGs, it's not impossible. There are many ways to get started. Start by designing a product or service to address a specific goal. For example, you could focus on Goal 8 (affordable and clean energy).

    To measure the intended impacts of investments, investors can use SDG indicators. Some common indicators include corporate output, the number of people cured, and savings or curing. Others are more activity-based, like how much water is pumped or how many drugs are provided to people.

  • Impact investment has four main traits

    Published on:01/11/2023
  • Impact investment is a way to invest that aims to have a positive effect on society or the environment as well as make a profit. Sustainability in the environment and society, social entrepreneurship, and community development are often linked to it. But the idea of "impact investment" also has a number of other parts. These include the investor's desire to have a positive effect on society or the environment, the variety of investment opportunities, and the evidence and impact data used to design the investment.

    Impact investing is a way to invest that aims to have a positive effect on society or the environment while also making money. It can be used with many different types of assets and strategies.

    Investors use a wide range of tools to look at and measure the effects of their investments. One of these tools is economic analysis, which is used to figure out the costs and effects of decisions about how to use resources. Outcome Mapping and Contribution Analysis are two other ways.

    Impact investing is a term that was made up of a group of investors in 2007. Today, the field is still growing, and terms may change as time goes on. The Core Characteristics of Impact Investing were made by the Global Impact Investing Network (GIIN). They describe the most important parts of impact investing.

    An impact investor could be a person, a group, or a financial institution. They put their money into businesses or organizations that are meant to help people or the environment. They can also put money into the CSR or ethical practices of a company.

    Evidence and impact data are becoming more and more important when designing investments. In the past, investors made decisions based on their gut feelings or what they could see on a company's balance sheet. More and more companies and funds use data to make smart investments these days.

    A good measurement strategy can be as simple as focusing on a few easy-to-measure outputs or as complex as using a number of different quantitative and qualitative sources. But the best ways to invest in impact are always those that use both quantitative and qualitative data.

    It can be hard to figure out the right metrics and indicators to measure the effectiveness of an investment. But a strong approach can be made with the right framework and a team that works hard.

    For example, TPG's $2 billion Rise Fund, which is an impact fund, makes decisions based on research. They keep track of their portfolio's financial and impact indicators and set impact covenants for the companies.

    Impact investments are a different way to invest that is attracting more and more investors. There are also institutional investors, like pension funds and private foundations. They try to do good things for people and the environment while also making money.

    Several industries, such as agriculture, health care, clean, renewable energy, and more, can benefit from impact investments. Some investors look for returns below the market rate, while others try to get returns that are on par with the market. But even though they have different goals, most impact investors want to make a difference and make money at the same time.

    A new report from the Global Impact Investing Network (GIIN) looks at how well impact investments do financially. The study looks at three types of assets: real assets, venture capital, and private equity. It talks about nine rules that guide the way investments are made.

    Investing through middlemen is a more efficient and flexible way to put money to work. Banks, pension funds, and family foundations are some examples.

  • What is Impact Finance?

    Published On: 12-29-2022
  • Impact finance is the investment of capital, usually in the form of equity, to support a social or environmental cause or improve a social enterprise's financial condition. There are many different ways to do this, from investing in a company working to create a sustainable economy to support a nonprofit organization whose mission is vital to you.

    Impact finance is a form of investing focusing on generating social and environmental benefits. This is a relatively new field, but it has caught the attention of institutional investors.

    Impact investments can range from simple microfinance funds to venture capital. These types of assets can be very competitive. Typically, these investments are screened and rated using an ESG score. The scores are used to measure the performance of companies on environmental, social, and governance issues.

    Impact investing is an excellent way to support worthwhile causes. It allows donors to choose a particular issue area and invest in a company dedicated to solving it. You may invest in companies with a gender balance or a low carbon footprint, or you may divest from sugary foods and fossil fuels.

    A loan can be an excellent way to support a worthwhile cause. Nonprofits need cash to make ends meet and start new initiatives. Whether it's a new building or a rebranding, a little extra money can go a long way in helping your organization scale up. If you're interested in a loan, check out FlexLoans. This lender delivers low-cost loans to mission-driven financial intermediaries.

    Not all loans are created equal. Before you hammer a lender, be sure to ask the right questions. Some lenders might require collateral, a credit score, or legal documents. While you're at it, be sure to inquire about fees. For instance, if you're looking for a long-term loan, ask if there are any penalties for prepaying.

    Philanthropic grantmakers need to measure the impact of their grants. The evidence can guide the direction of their programs and help attract other funders. But if a nonprofit leader wants to ensure that their measurement is effective, she needs to ensure that it is based on the best available data.

    To do this, the nonprofit leader should understand what information they need to gather, how to collect it, and how to interpret the results. Measuring impact is a complex process.

    There are two types of outcomes that can be measured. One is transactional, and one is transformational. Both are important, but the type of outcome being measured will influence the method used.

    Impact finance is a new type of investment which combines financial and social return. It allows donors to choose from various possible returns while enabling them to participate in impact-based projects designed to make a positive social or environmental impact.

    Transactional changes are easier to track. The nonprofit's performance will be compared to its previous performance, whereas transformational changes require that the nonprofit confronts power dynamics.

    Several types of investors are involved in impact finance. Some impact investors aim to achieve below-market rate returns, and others intentionally invest for a higher financial return. However, all impact investments must ensure their social and environmental impacts are positive. In addition, it is essential to maintain transparency and accountability.

    A new study by the Global Impact Investing Network (GIIN) explores the financial performance of private equity impact funds. The study evaluated the portfolios of 71 impact funds.

    Impact investments are investments that have a social and environmental impact. According to GIIN, these investments aim to generate solutions to societal challenges. They can be made across asset classes. A growing body of research suggests that risk-adjusted market rate returns are possible.

    The Global Impact Investing Network released its latest report examining the financial performance of impact investments. It combines data from various sources to give a more holistic picture of the impact investing industry.

    The report is structured around three main themes. First, the study focuses on assessing the most critical metrics. Second, it explains what the findings mean for the industry. Third, it presents some essential recommendations to investors and advisors.

    One of the most impressive findings is that impact investors can achieve market-rate returns. The top 5% of private equity impact funds achieved an annual rate of 22.1%, while the bottom 5% achieved an annual rate of -15.4%. This is not surprising, considering that most impact investors are pursuing competitive market-rate returns.

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