Fees represent the operational costs to source, evaluate, execute, and monitor opportunities across all types of capital, including traditional investments, impact-first investments, and grants. These costs vary by type, reflecting differences in diligence complexity, deal structure, and reporting requirements. All inputs in the model are meant to be net of any fees occurred to generate financial return and social impact.
Fees are the operational costs associated with managing money for any purpose—whether traditional investments, impact-first investments, or grants. They cover the people and infrastructure needed to find, evaluate, execute, and monitor opportunities. Costs may be internal (in-house staff) or external (outside managers)—whoever manages the relevant investments or programs.
Fees typically differ across investment types: traditional investments benefit from standardized processes and scale, while impact-first investments and grants may carry additional costs for the specialized expertise required to evaluate the impact prospects of different opportunities and integrate that evaluation into decision-making and monitoring.