4: Construct
Draft, iterate, and approve legal documents, and clarify the roles of staff, governing boards, and advisory committees.
Timespan: 6-12 months
Steps Prime takes
Coordinate with legal counsel, aiming to minimize costs through pro bono engagement and/or nonprofit discounted rates.
Ensure consistency of the fund’s operating budget with Prime’s policies on investment manager compensation.
Sample clarifying questions
Who is responsible for evaluating impact potential, additionality, and “bridge to somewhere” pre-investment?
What accountability mechanisms are in place to ensure rigorous assessment of impact-first underwriting criteria?
Who has approval rights over appointment of committee members and future changes to fund mission and structure?