Due Diligence: Now More Than Ever

May 14, 2020

“Corporate behavior in a time of crisis—both in how companies treat employees and customers, and their impact on society in a time of need—can have lasting implications, both positive and negative,” says Jessica Alsford, Head of Sustainability Research at Morgan Stanley. “These factors can be linked to long-term performance and returns.” Now more than ever, we believe there’s a strong correlational between companies and investments that do good – those creating positive social, economic, or environmental impacts – and those that will perform well financially. At CommonGood, we’ve designed our due diligence process with this in mind. We employ a rigorous process centered around three key components designed to identify high quality values-based alternative investments.

  1. Investment: CommonGood’s primary focus is on the viability and attractiveness of the investment.  Utilizing a combination of macro research coupled with fundamental financial analysis, we put all potential investment strategies through a detailed institutional-style due diligence process. We focus on industry research, competitive and regulatory analysis, and financial analysis and modeling.
     
  2. Values: CommonGood is committed to identifying investment opportunities that align with investor values.  It must create an impact on our communities, society, and the world in a meaningful and measurable way.  In the same way that we vet the investment strategy, we also assess the impact created. Assessing impact involves intentionality, measurability, reportability, scale and scope.
     
  3. Partner: CommonGood seeks out long-term relationships with best-in-class asset managers and investing partners. Prior to the establishment of a relationship, we will thoroughly vet the strategies, investment theses, character, team, track record, and commitment to impact of each of our partners.

Grounded decision-making and a commitment to responsible investing have become more important than ever. During this time of crisis and recovery, CommonGood continues to provide thoroughly diligenced, unique, and compelling impact investment opportunities.

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