Our Approach
Our approach builds on the groundwork laid by the impact community over the last three decades, and incorporates knowledge gained from the global investment portfolio of The Rise Fund, creating a world where capital is connected to evidence.
Where Evidence and Capital Converge
Y Analytics is TPG’s innovative capability focused on data-driven decision-making related to the environmental and social impacts of deployed capital. Guided by an independent advisory board, Y Analytics brings together research and rigor to provide insights and tools to improve capital allocation for TPG directly. Furthermore, Y Analytics regularly shares its findings and approaches for the benefit of other investors.
A Research-Based Approach
Building on the groundwork laid by the impact community over the last three decades and the knowledge gained from the global investment portfolio of The Rise Fund, Y Analytics uses the vast body of available academic research to inform a deeper understanding of what creates impact. Y Analytics builds tools and provides services that allow companies and investors to use that research in day-to-day investment decisions. Through its work, Y Analytics drives the process of identifying new pathways to creating impact and filling gaps in the research field.
Y Analytics Provides Two Key Services:
- Impact Solutions – Y Analytics provides rigorous, evidence-based impact assessments for The Rise Funds, TPG Rise Climate, and the Evercare Healthcare Fund. Our methodology estimates the net impact in economic terms that a company or an investment creates across any of several impact pathways.
- Environmental, Social, and Governance (ESG) – Y Analytics is responsible for the design, implementation, and performance of TPG’s ESG strategy, through and with TPG’s investment professionals.
We maintain a dedicated focus on creating, advancing, and stewarding methodologies; building mechanisms to bridge the divide between research communities and capital allocation decision-makers; and actively sharing approaches and learnings with the public to help advance the field.
How Y Analytics Connects Evidence to Impact:
- Research-based definitions of impact, as opposed to intuition-based
- Operational approach that can be used in real-time and at scale
- Net impact-oriented approach that takes into account the counterfactual
- Valuation-based, to allow for comparison across industries and contexts
- Closed loop assurance – enabled by clarity of ex ante underwriting and ex post evaluations
- Work, learn, share approach to ensure continuous improvement of methodologies
Why This Work Matters
Billions of people are left behind in a growing global economy, and billions more face the risks of a rapidly-changing environment. That is why creating long-term inclusive economic growth and expanding environmental sustainability are defining issues. Addressing these twin challenges demands trillions of dollars of new investment, and we must ensure that every dollar is spent effectively in pursuit of impact.
No single institution can address these daunting obstacles alone. Together, the cumulative power of the investing, business, entrepreneurial and research communities can bring much needed private-sector resources to solve these growing challenges.