Fresh insights: Pioneers Roots of Impact and iGravity share their experiences about how the Impact-Linked Finance Fund (ILFF) supports managers to get off the ground quickly.
Back in 2021, when the Impact-Linked Finance Fund (ILFF) was kicked off, there was a clear pain point for the early pioneers in Impact-Linked Finance programs, especially when it comes to managing grant-type assets. “Without ILFF, a fund like ours would have spent months just trying to get off the ground”, remembers Patrick Elmer, Founder and CEO of iGravity.
iGravity, which manages the Impact-Linked Fund for Eastern and Southern Africa, among others, joined forces with Impact-Linked Finance pioneer Roots of Impact to initiate the ILFF as their shared implementation platform. Their goal was simple: to combine both companies’ operational experience and enable Impact-Linked Funds that are scalable, efficient, and compliant with their funders’ needs.
Yet first, there was some work to be done to get the ILFF installed as a Dutch foundation. “Being the first to figure out an innovative product or service is never straightforward. But the initial headaches paid off for us very nicely”, recalls Bjoern Struewer, Founder and Co-CEO of Roots of Impact and ILFF Board member, from the early days. Today, the ILFF is the key operational platform for all the Impact-Linked Funds that Roots of Impact is managing. “I’m excited that it’s now open for others who want to join the Impact-Linked Finance movement”, Bjoern emphasizes.
A trusted back-end service provider for Impact-Linked Fund Managers
With 4+ years of unique operational experience in its belt, the ILFF acts as a trusted partner and provider of a well-oiled back-end machinery that makes the lives of Impact-Linked Fund managers smooth and allows an easy “plug-and-play”. Imagine you’d have to search for the right legal structure to manage grant money, negotiate contracts, and convince funders that your governance is trustworthy enough to manage their capital. Such operational headaches can be painful and eat up plenty of precious time and margins. And they can also distract you from your core task as a manager. “The ILFF allows us to focus on what actually matters: supporting entrepreneurs with Impact-Linked Finance”, confirms Patrick Elmer.
If you have never managed an Impact-Linked Finance program, fund or facility before, the benefits are specifically strong. The ILFF provides a solid foundation from day one, with clear governance, transparent processes, and credibility with funders. From asset protection to compliance systems to risk management to knowledge sharing, the ILFF has a lot of value to offer to fund managers, whether beginners or experts in Impact-Linked Funds.
Examples from practice: weeks of legal and structural work saved
“One very tangible example of ILFF’s value is how it simplifies our work with financial instruments”, explains Patrick Elmer, who is also a Board member of the ILFF. “Whether we are structuring an Impact-Linked Loan, Social Impact Incentives (SIINC), or an Impact-Ready Matching Fund (IRMF), we don’t have to reinvent the wheel every time”. To fund managers like iGravity, the ILFF provides clear, proven templates and transaction frameworks that they can adapt quickly.
“This not only saves us weeks of legal and structural work but also gives funders the confidence that we’re operating within a robust and tested system. It’s like having a well-built toolbox ready whenever we need it. We can spend less time on paperwork and more time working with entrepreneurs.”
Patrick Elmer, iGravity
In the meantime, the ILFF supports 4 Impact-Linked Funds, with 2 follow-on funds in the making. “I’m very proud to manage the ILFF’s service offering as the COO”, says Aarti Mahajan, who joined the ILFF in 2024 and brings strong experience as a program manager and operations lead to the table. “We have a highly experienced Board team, which also includes two independent members with Peter George from Spark+ Africa Fund, and Margot Quaegebeur with her 20+ years of impact investing expertise.” Aarti is the first point of contact for Impact-Linked Fund managers, who are curious to investigate how the ILFF can release them from a bulk of operational burdens. Interested fund managers can reach out to ILFF to learn more about its services and explore how collaboration could work in practice. “There are a few steps that need to be done in the beginning, but then our plug-and-play solution fully kicks in”, Aarti points out.
In the end, what Impact-Linked Fund managers and their funders want most is to optimize impact.
“To me, our mission is very clear: We want to empower entrepreneurs to deliver the best possible impact by providing financial rewards for the positive outcomes they create. Better terms for better impact. The fact that the ILFF allows Roots of Impact and other Impact-Linked Fund managers to do that in a smooth, reliable and simple way, is a huge value add for us and for others who truly care about impact.”
Bjoern Struewer, Roots of Impact
So, are you planning to launch and manage an Impact-Linked Fund and are curious about more details? Then read our FAQs and reach out to us to learn more about how we can make your lives so much easier!
