Purpose & Results
When we laid the foundations of Bain Capital Double Impact over eight years ago, the industry faced a prevailing question: is there a trade-off between financial performance and impact? This persisted despite the numerous impact pioneers already deploying capital and the rapid growth of the industry. We believed then, as we do now, that this question offers a false choice.
Instead, we see – and have proven out – that impact can be a key driver of value in companies. Investing in employees’ growth and development, delivering high-quality services and products to those who need them, and implementing sustainability initiatives that enable cost reductions and resiliency can have both a meaningful impact and drive financial performance.
Our Portfolio Portfolio herein refers to investments in Bain Capital Double Impact Fund I and/or Fund II.
Over the past year we made considerable progress on our dual mandate to drive meaningful impact and financial results for our investors. Despite a challenging economic environment, exacerbated by high interest rates, we successfully completed five exits in the past year. These include companies from all three of our investment verticals. We believe this reflects the strong market demand for the high-quality, mission-driven companies we have built. We take immense pride in what we were able to achieve with each company and look forward to following their continued success over the coming years.
Branching Minds, our newest investment, is an innovative education technology company. Branching Minds’ Multi-Tiered Systems of Support (MTSS) platform equips educators with resources to identify students’ learning needs and tools to facilitate research-backed interventions and track learners’ progress. This investment reflects our belief that data-driven, evidence-based learning resources can help address educational inequities in school systems and improve educational outcomes for all students.
Value Creation
Double Impact’s active partnership model helps companies enhance operational and business performance while scaling their positive environmental and social outcomes. We bring the resources, expertise, and experience of the Double Impact team, along with the broader Bain Capital platform, to support the management teams in our portfolio companies.
A cornerstone of our value creation approach is our portfolio group, one of the only teams of hands-on operating professionals in the impact investing industry fully dedicated to working with companies during the investment period. In partnership with management teams, the portfolio group team leads the charge in implementing strategic business and impact initiatives, providing the expertise and resources to help companies excel. In an increasingly complex and competitive market, we find that companies are seeking value-added partners who understand their business and the nuances of their industry and can bring resources and expertise to bear to help them scale.
We work with our portfolio companies on a range of topics - from developing and delivering on ambitious growth plans, to identifying and executing M&A opportunities, to implementing tools to manage their environmental footprint, to helping drive meaningful employee engagement initiatives. We believe the road to positive impact is paved with measurable targets and aligned incentives. Therefore, we tie management compensation of our portfolio companies directly to achieving specified impact results, fostering a culture of accountability and performance.
Talent is critical to unlocking transformational growth. We are committed to building high-performing, inclusive cultures that support the development and success of all individuals. The average employee net promoter score – a measure of employee engagement and satisfaction – for our portfolio was 38 last year; this was a 31% increase on a like-for-like basis when compared to the portfolio in 2022. Data as of December 31, 2023. Averages calculated based on company reported data. And, as of the beginning of this year, 44% of our companies’ Board members and 64% of our companies’ management team members are individuals from historically underrepresented groups. Data as of Q1 2024. Source: Double Impact’s annual DEI self-attestation survey. Management team positions include CEOs and direct, non-temporary reports. Percentage of team that is categorized as “underrepresented” are those that identify as female, Asian, Black or African American, Hispanic or Latino, Middle Eastern or North African, Multiracial, Native American or Alaska Native, Native Hawaiian or other Pacific Islander, LGBTQ+, veteran, and/or as a person with a disability.
Team
We closed 2023 with 28 investment professionals and are excited to share that Jacob Donnelly was promoted to Partner at year end. Jacob joined Double Impact at its inception and has made significant contributions to the team over the past eight years.
We believe a diversity of lived experiences, thoughts, and backgrounds contribute to the ongoing success of our team and work. As of the beginning of 2024, 70% of Double Impact team members identify as a member of a historically underrepresented group, as does a majority (57%) of our senior leadership team. FN should be: Data captured as of January 1st of the stated year. Senior leadership is defined as Partners, Managing Directors, Principals, Directors, Operating Partners, and Executive Vice Presidents. Percentage of team that is categorized as ‘diverse’ are those that identify as female, Asian, Black, Hispanic or Latino, Middle Eastern or North African, Multiracial, Native American or Alaska Native, Native Hawaiian or other Pacific Islander, and/or LGBTQ+. Percentages rounded to the nearest whole number. Collection of LGBTQ+ data began in 2022 with reporting beginning in 2023.
Looking Ahead
As a result of our experience investing Double Impact Fund I and Fund II we have more conviction than ever that performance and impact can be drivers of each other. The challenges we face today – in the United States and across the globe – require bold thinking and innovative solutions. Experience has taught us that success on both dimensions is possible, and we are excited about the opportunities that lie ahead!
- The Partners of Bain Capital Double Impact
Double Impact Team Diversity
At Bain Capital, we are committed to fostering an inclusive culture and building a high-performing workplace where all employees can achieve their full potential.
Percentage of team identifying as a member of a historically underrepresented group Data captured as of January 1st of the stated year. Senior leadership is defined as Partners, Managing Directors, Principals, Directors, Operating Partners, and Executive Vice Presidents. Percentage of team that is categorized as ‘diverse’ are those that identify as female, Asian, Black, Hispanic or Latino, Middle Eastern or North African, Multiracial, Native American or Alaska Native, Native Hawaiian or other Pacific Islander, and/or LGBTQ+. Percentages rounded to the nearest whole number. Collection of LGBTQ+ data began in 2022 with reporting beginning in 2023.
Portfolio Company Diversity
Research continues to validate the financial benefits of cultivating diverse teams and inclusive cultures. Research published by McKinsey in 2023 concluded that companies with the highest levels of gender and ethnic diversity (those in the top quartile) had a 39% increased likelihood of outperformance versus their bottom-quartile peers. McKinsey & Company, “Diversity matters even more: The case for holistic impact,” December 2023. In the Double Impact portfolio, we saw year-over-year increase in the percentage of management roles and board seats held by individuals from underrepresented groups between January 2023 and January 2024. As of January 2023, 62% of management team roles and 43% of board seats were held by individuals from underrepresented groups. Data as of Q1 2024. Source: Double Impact’s annual DEI self-attestation survey. Management team positions include CEOs and direct, non-temporary reports. Percentage of team that is categorized as “diverse” are those that identify as female, Asian, Black or African American, Hispanic or Latino, Middle Eastern or North African, Multiracial, Native American or Alaska Native, Native Hawaiian or other Pacific Islander, and/or LGBTQ+, veteran, and/or as a person with a disability.
Leadership Team Diversity According to McKinsey, as of 2023, the average executive team was comprised of 20% women and 15% individuals who identified as a member of an underrepresented racial/ethnic group. Double Impact Leadership team data as of January 1, 2024. Senior leadership is defined as Partners, Managing Directors, Principals, Directors, Operating Partners, and Executive Vice Presidents. Percentage of team racially and/or ethnically ‘diverse’ are those that identify as Asian, Black, Hispanic or Latino, Middle Eastern or North African, Multiracial, Native American or Alaska Native, Native Hawaiian or other Pacific Islander. Percentages rounded to the nearest whole number. Portfolio company data as of Q1 2024. Source: Double Impact’s annual DEI self-attestation survey. Management team positions include CEOs and direct, non-temporary reports. Percentage of team that is categorized as “% Women” are those that identify as female; percentage categorized as “% Racial or Ethnic Diversity” are those that identify as Asian, Black or African American, Hispanic or Latino, Middle Eastern or North African, Multiracial, Native American or Alaska Native or other Pacific Islander. Average executive team data sourced from McKinsey & Company, “Diversity matters even more: The case for holistic impact” December 2023.
When compared to executive teams overall, the leadership teams of our portfolio companies and the Double Impact team have a greater percentage of women and individuals who identify as part of an underrepresented racial and/or ethnic group. We view a diversity of backgrounds, experiences, perspectives, and opinions as vital to engaging talent, building thriving businesses, and delivering results and returns.
Investment Verticals
Bain Capital Double Impact invests across three impact themes – Health and Wellness, Education and Workforce Development, and Climate and Sustainability. We believe there is significant opportunity across these verticals to drive demonstrable impact while delivering competitive returns to our investors.
Access & Outcomes
Double Impact invests in companies that expand access to high-quality care and promote well-being and healthy lifestyles for all.
In the United States, nearly 99 million people live in regions without adequate primary care, 70 million live in areas with shortages of basic dental care, and 158 million live in areas with shortages of mental health services. Estimates as of January 30, 2023. Source: Health Resources and Services Administration, U.S. Department of Health and Human Services, https://data.hrsa.gov/topics/health-workforce/shortage-areas,accessed January 2023 Through a combination of increased use of technology, new payment models that align incentives with healthcare outcomes, and expansion of effective services to meet patients’ needs, we believe there will be opportunities to bend the cost curve, improve quality, and reduce inequalities in healthcare.
We also look beyond the healthcare sector to other factors of daily life that have an impact on the well-being of individuals and communities. These factors, known as the social determinants of health, include healthy foods, safe housing, clean air and water, and financial stability. U.S. Department of Health and Human Services. Social Determinants of Health: https://health.gov/healthypeople/priority-areas/social-determinants-health. These products and services are often priced at a premium and can be less accessible to middle and low-income individuals. We are excited to invest in companies that are working to extend the reach of these offerings and improve access, usually by delivering them at lower cost.
Opportunity & Achievement
Double Impact invests in companies that address gaps in skills and achievement and aim to improve economic mobility through training, education, and economic growth in underserved communities.
We believe education is one of the strongest enablers of social mobility. Per-pupil spending on educational resources in the United States has more than quadrupled over the last fifty years. However, educational achievement has stagnated and gaps in achievement remain pervasive, particularly for low-income communities, children of color, and English language learners. National Digest of Education Statistics, 2019. To make progress against these challenges, we are partnering with companies to drive innovative education delivery models that can meaningfully support student achievement while reducing costs and enabling scale.
Beyond pre-K through 12th grade learning, higher education and the workplace are dynamic environments that we believe present significant potential for impact. Companies of all sizes and industries struggle to attract and retain enough workers who possess the requisite skills for the job. Furthermore, the rapid pace of technological and economic change means the nature of those necessary skills is also rapidly evolving. We believe innovative technology-enabled learning models and services can improve opportunities for workers to learn new skills and match them with high quality job prospects. We support companies and business models that address supply-demand imbalances in critical skills areas and enable economic opportunity and adaptability for workers.
Preserve & Restore
Double Impact is focused on investing in solutions that support the energy transition and reduce and reverse the environmental impacts of modern society, while also catalyzing economic growth and prosperity.
The transition to a cleaner, more efficient energy future is imperative. We also view it as a compelling investment opportunity characterized by long-term growth profiles and outstanding impact potential. Double Impact is focused on scaling solutions across the energy spectrum – from renewable energy generation and the optimization of energy use in buildings and infrastructure, to enhancing resilience and adaptation to climate change.
Many of the business practices and technologies that enabled transformational economic growth over the last century left harmful and unsustainable legacies affecting our soil, water, air, and biodiversity. There is an urgent need for scaled solutions to address these issues and mitigate further harm to people and communities. We are focused on investing in solutions that can remediate these issues, restore natural resources, and help maintain critical infrastructure for healthy communities.
The climate crisis has also made it clear that we need better, more sustainable production practices and more efficient resource use. We recognize the momentum from consumers, businesses, and governments to meaningfully transform our current production models to ensure they are more sustainable, transparent, and safe. An ecosystem of enablers – manufacturers, distributors, service providers, and others – is growing to support companies that are taking on increasingly rigorous stakeholder objectives. We are investing to meet these demands.
Awards and Market Leadership
Bain Capital Double Impact portfolio companies work tirelessly to grow their businesses and scale their impact. We share a passion and vision for the positive effect they can have on their employees, communities, customers, and the planet. We are proud of the milestones and recognition our companies and our team received for impact leadership in the past year.
Four Companies Recognized in Fortune’s Impact 20
Four Double Impact portfolio companies – Lillio, Presence, Rodeo Dental, and TeachTown – were recognized as part of Fortune’s Impact 20. This list highlights companies that have built their business models around “world-changing ideas [that] solve social and environmental problems.” These companies are accelerating their innovation and positive impact on patients, families, educators, and students to help bridge gaps in healthcare and education.
Branching Minds Wins Tech & Learning Award of Excellence
Branching Minds won the Tech and Learning Awards of Excellence: Best of 2023 in the category of Primary Education. The Tech and Learning Award of Excellence celebrates organizations that have demonstrated exceptional dedication to the advancement of technology in education. This award recognizes Branching Minds’ outstanding contributions to the education sector and its deep commitment to empowering educators and improving student outcomes.
Cotopaxi Takes Home “Triple-Crown” for Mission-Driven Companies
Cotopaxi’s mission is to build gear that fuels outdoor experiences and global change. In 2023, it was recognized in Fortune’s Brands that Change the World, Fast Company’s Brands that Matter, and Inc. Magazine’s Best in Business. As Cotopaxi continues to grow, it remains focused on creating sustainable and ethnically made gear, building an inclusive company culture, and supporting communities that face extreme poverty through the Cotopaxi Foundation.
Meteor Earns Silver Bell Seal for Workplace Mental Health
Fostering a positive, inclusive culture is a priority for Meteor Education. The Workplace Mental Health Certification recognizes employers committed to creating mentally healthy workplaces. The Bell Seal's holistic evaluation of employer practices considers the entire employee experience. Meteor Education’s decision to go through the certification process was initiated by a member of their Well Advisors Committee and is a testament to the team’s commitment to mental health.
Two More Companies Achieve B Corp Certification
Two portfolio companies – ConvenientMD and Excelsia Injury Care – achieved B Corp Certification in the past year. The certification is a designation that a company is meeting high standards of verified performance, accountability, and transparency in areas such as employee development and benefits to supply chain practices and governance. ConvenientMD and Excelsia join four other Double Impact portfolio companies – Branching Minds, Cotopaxi, Lillio, and Rodeo Dental – as members of the B Corp community. Ten portfolio companies in Double Impact’s portfolio have surpassed the score of 80 on the B Impact Assessment, the threshold score to become a B Corp.
Double Impact Scores Advanced Across All Impact Principles & Named Practice Leader Again
In 2023, Double Impact completed a third-party verification of our alignment with the Operating Principles for Impact Management, a voluntary framework for impact investors. This verification process, conducted by BlueMark, is a comprehensive review of the rigor and fidelity of our impact measurement and management processes. We received an “Advanced” rating across all eight Impact Principles and were named a Practice Leader, for the second year in a row, as part of BlueMark’s Making the Mark Practice Leaderboard report. This recognition reflects our top quartile performance ratings on each of the Impact Principles.
Portfolio Value Creation
Bain Capital Double Impact’s active partnership model helps drive operational and business transformation alongside positive impact and sustainability outcomes. We bring the resources, expertise, and experience of the Double Impact team, along with the broader Bain Capital platform, to support mission-driven management teams to scale financial and impact results.
2023 Exits
Our mission is to deliver competitive financial returns alongside measurable social and environmental impact. Since 2016, Double Impact has invested in 25 companies across Fund I and Fund II and have had eight exits and/or monetizations across our portfolio. Data as of Q1 2024. Five of these events took place in the last twelve months – two in our Health & Wellness vertical (HealthDrive and SpringWorks), two in Climate & Sustainability (Living Earth and Japan Wind Development), and one in Education & Workforce Development (Sparq). We are incredibly proud of what we were able to achieve with each company and the impact we believe they will continue to have on people and the planet.
Bringing integrated healthcare to you
Preventative and regular healthcare services are critical to support the well-being of all people but are especially important for residents of long-term care and skilled nursing facilities. Early intervention and preventative services support better health outcomes for patients. HealthDrive is a specialty provider of on-site dentistry, optometry, podiatry, and audiology to residents in long-term care, skilled nursing, and assisted living facilities. By providing a comprehensive set of healthcare services on-site, HealthDrive supports increased access and improved quality of care to patients in extended care facilities, and provides consistent, cost-effective care.
Technology has been a major driver of economic growth and job creation. However, in the United States, these jobs have historically been concentrated in a few large metro areas. Over 73% of “high-tech” jobs are still located in San Francisco, San Jose, Boston, NYC, and Washington D.C. Chow, M., and N. Goldschlag, (2023, February 14) High-Tech Industries Are Concentrated in Five Coastal Metro Areas, U.S. Census Bureau. https://www.census.gov/library/stories/2023/02/where-in-the-united-states-are-the-high-tech-jobs.html
On average individuals working in technology fields earn more than the median wage for American workers. We believe providing opportunities for individuals living outside traditional “tech hubs” can help expand economic opportunities for a broader, diverse talent pool.
Living Earth, Japan Wind Development, & SpringWorks
We had three additional exits in our portfolio this year. Together these three investments reflect the tenacity and hard work, global footprint and deep industry expertise of the Double Impact team and broader Bain Capital platform.
Three Pillars of Our Impact Approach
Built upon a rigorous measurement and management process, our approach to impact employs industry best practices, leverages our active partnership model, and engages our network of advisors to drive toward meaningful, positive outcomes.
Impact Measurement & Management
Comprehensive, rigorous approach to impact measurement and management implemented
SDG Alignment
Investment themes and impact priorities aligned with UN Sustainable Development Goals
Impact Advisory Council
Guidance from industry experts and leaders in impact investing through our Impact Advisory Council
Impact Measurement & Management In certain circumstances an investment opportunity might require a more expeditious review and not every element of the impact and ESG screening and due diligence described herein may be practicable. The actions and steps outlined are illustrative and most applicable for investments where Double Impact has a controlling ownership stake in the company.
Use standard frameworks and tools to assess impact fit or potential
- Impact screening tool
- ESG due diligence questionnaire
- Stakeholder assessment
- Impact thesis and theory of change
Branching Minds
Product efficacy and user experience were key areas of focus during our due diligence. We reviewed data on test scores, behavioral incidents, and disciplinary referrals, indicating enhanced social-emotional skills and positive learning outcomes among students whose teachers used the tool. Educators overwhelmingly endorsed Branching Minds as a powerful tool for enhancing their ability to support students. The results of this analysis were important aspects of our decision to partner with the team.
Drive impact through active management
- Management incentives tied to impact
- B Impact Assessment
- Impact metrics tracking and forecast
- Stakeholder toolkits
- HPO surveys
- Initiatives to support inclusive cultures and diverse teams
Cotopaxi
We have worked with Cotopaxi to accelerate its already strong impact initiatives. Specifically, we collaborated to define goals such as carbon intensity, improvements on the B Impact Assessment, and employee volunteering participation rates. We also launched a High-Performance Organization (HPO) survey early in our investment period. Cotopaxi was already strong on several impact elements and identified DEI as an area for continued improvement. Together we aligned on a comprehensive set of DEI metrics to track and report progress.
Hear more about our partnership from Davis Smith, Founder, Cotopaxi, and Cecilia Chao, Partner, Bain Capital Double Impact.
Conduct exits, considering effect on sustained impact
- Enhance mission-driven culture through ownership
- Consider acquirer’s impact track record
- Imbed commitment to sustaining impact, when possible
HealthDrive
Over the course of nearly four years, we were able to work with HealthDrive to achieve our shared vision for growth and impact. The company’s differentiated positioning as a comprehensive provider of care with a strong management team and industry tailwinds attracted significant interest from potential buyers. In August 2023 we sold HealthDrive to Cressey & Co., who are excited to continue to scale the company and its impact.
SDG Alignment
Bain Capital Double Impact’s three investment verticals and cross-portfolio impact priorities align with the UN Sustainable Development Goals (SDGs). Through the products and services of our companies we support SDG 3: Good Health and Well-being, SDG 4: Quality Education, and SDG 12: Responsible Consumption & Production, among others. Our cross-portfolio value-creation and impact initiatives support SDG 5: Gender Equality and SDG 10: Reduced Inequalities, among other Global Goals.
In addition to company-specific initiatives that support poverty alleviation efforts, Double Impact works with all portfolio companies to improve employees’ financial security through competitive pay and benefits and additional tools and resources such as employee emergency funds and payroll smoothing programs.
No Bain Capital Double Impact investments to date.
Health and well-being of individuals and communities requires physical and mental healthcare services, access to medicines and vaccines, and clean air, drinking water and land. Double Impact’s investments across Health and Wellness and Sustainability Verticals support expanding access and improving health outcomes for all.
Education and learning opportunities are important for the ongoing achievement and development for all people. Double Impact invests in companies focused on improving educational and workforce development outcomes for students and adults, particularly those historically underserved.
Double Impact supports the achievement of gender equality through initiatives implemented across the portfolio, including measuring diversity and inclusion across all boards and management teams.
Access to safe drinking water and sanitation services is critical to our individual and community health. Double Impact invests in companies that are working to improve water quality and access for communities.
Diversified energy sources and efficient use of energy resources support continued economic growth around the world. Double Impact invests in companies that increase the production and support the ongoing operation of clean energy around the world.
Safe, inclusive work environments and employment opportunities are key components of shared growth and prosperity. Double Impact supports decent work and sustainable growth by working with portfolio companies to create work environments that are safe and supportive for all and ensure competitive pay and benefits for workers. We also invest in companies whose products and services are designed for individuals seeking professional development and advancement.
No Bain Capital Double Impact investments to date.
For-profit companies can play a role in reducing inequality, through fair and competitive wage practices, fostering inclusive work environments, and scaling products and services that allow underserved individuals to participate in society and the economy. Double Impact is investing in and working with companies to create opportunities for historically marginalized communities and scaling products that support the health and development for all.
Cities are important drivers of economic growth and social transformation. Double Impact invests in companies that are supporting the sustainable management and development of the natural and built environment in cities.
Responsible production requires that we remake supply chains to be more sustainable, transparent, and safe for all workers. Double Impact invests in companies that are changing the way goods are made and resources are used.
The SDG targets and indicators underlying SDG 13 refer to national planning, policy development and resiliency efforts. Although Double Impact does not contribute directly to those targets, as defined, combatting climate change on a local scale remains core to our impact philosophy and investment thesis. We work with companies across our portfolio to drive improvements in their approach to environmental management and stewardship, where applicable and appropriate.
No Bain Capital Double Impact investments to date.
Companies have a significant role to play in the preservation and restoration of our ecosystems. Double Impact companies support this goal through their sourcing decisions, supply chain management, and services that directly improve land management.
No Bain Capital Double Impact investments to date.
No Bain Capital Double Impact investments to date.
Impact Advisory Council
The Impact Advisory Council (IAC) is comprised of industry leaders with expertise in healthcare, education and workforce development, sustainability, and impact management. As thought partners, they challenge us to continually improve our approach, assess innovative models to drive change, and scale positive outcomes. These talented advisors have dedicated their careers to improving healthcare affordability and access, addressing gaps in education and economic mobility, supporting climate solutions, and growing the fields of ESG and impact investing.
