PRIs in the Big Picture
Here are the leading reasons why foundations use PRIs:
- To prove a market or the creditworthiness of an institution. One investor described his foundation’s strategy: “One of the things we think PRIs can do is to help an organization build a record of managing debt successfully. And in so doing, they position themselves to be able to access capital markets more broadly down the road.”
- To catalyze or strengthen good management within recipient organizations. Because PRIs add another level of complexity to management and operations, the organizations that do well tend to have managers with the skills needed to achieve both social objectives and bottom-line outcomes.
- To help investees retain a commitment to mission. Given the enormous market pressures many mission-driven enterprises face, PRIs can sometimes help recipients retain their commitment to mission by offering a unique source of capital.
Takeaways are critical, bite-sized resources either excerpted from our guides or written by Candid Learning for Funders using the guide's research data or themes post-publication. Attribution is given if the takeaway is a quotation.
This takeaway was derived from Program-Related Investing.
