Impact IRR · Module 4

Impact Internal Rate of Return (Impact IRR)

The Impact Internal Rate of Return (Impact IRR) is the methodology used to assess an impact investment's financial and impact effectiveness. It encompasses seven components: Term, Hurdle rate, Catalytic opportunity, Attribution and Deadweight, Impact variability, Total investment, Projected financial return, and Projected impact return. The full technical treatment, including the Impact IRR formula, is in Module 6 (Appendix 1: Impact IRR Primer).

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