Preqin ESG Solutions 53 Preqin’s Impact Potential module does not attempt to measure direct impact. Its purpose, instead, is to provide a measure of future impact potential – by leveraging the information disclosed by impact fund managers, Preqin’s granular industry 15 taxonomy, and a conservative Natural Language Processing (NLP) impact estimation model. Our objective is to answer a single question: how likely is it that a particular asset could generate positive externalities/impact? We de昀椀ne positive impact as generate a social and/or environmental bene昀椀t alongside 昀椀nancial returns. Highlighted Impact Potential for Fund Managers use cases • Build target lists and streamline pre due diligence by expediting the screening process. • Identify trending sectors and regions, thus limiting your search costs for prospective investments and alerting you to enter these markets at an earlier stage. • Gauge the potential positive impact of an investment before it fully materializes. Impact Potential for Investors • Assess the impact of prior investments held by the fund managers to which you are considering committing capital. • Use the insights into how they understand impact to deepen your research in preparation for annual rounds of portfolio monitoring. Impact Potential for Service Providers • Use market intelligence regarding trends in the industry to improve the service you o昀昀er your investment team clients. ↗ Back to Contents