Capital is the source material, the limiting reagent, and the initial determinant of success for companies and funds aiming to yield both a financial and a social return. As the growth of impact investing has accelerated in recent years, so have the capital structures of impact funds diversified. However, though the ecosystem of impact capital stacks is as varied as ever, not all are succeeding. Indeed, some are yielding such poor results that many mainstream investors do not consider the structures professional or viable in the long-term. What distinguishes a great impact fund? Can a fund's form ensure (or doom) its performance?

In this module, we will talk about the shapes, sizes, and characteristics of impact capital stacks; we will learn to distinguish between the funds that succeed and the funds that struggle; as the discussion develops, we will address what cross-sector financial models have been tried already, what we can learn from them, and how we might continue to innovate in the coming years.

First, we will discuss the characteristics of an impact capital stack and the value of cross-sector partnerships in impact investing. Impact investments target both private financial and broader societal gains. These dual mandates add layers of complexity to the investment decision-making process, but also create opportunities for partnership with like-minded entities from other sectors. We will address how to blend philanthropic, government, and investment capital to achieve shared success, through the use of loan loss reserves, low-interest debt, convertible notes, and other investment structures.

Next, we will discuss impact capital from the perspective of the investors-- the Limited Partners and the General Partners who fuel the engine of productive capital allocation. Finally, we will talk about the very same impact capital from the perspective of the entrepreneur and the target company, the vessel for and ends of productive capital. This module will answer the questions: what kind of impact capital is best for certain players in the market? Who are the players in the impact capital marketplace driving innovation and achieving results? And what are the pitfalls and common mistakes of new players in impact capital?