Defining a North Star, Theory of Change, and Impact Measurement Framework for a Private Equity Firm

The situation

An Anthesis client, a multi-sector investor with $2.5 billion in committed capital, had recently spun out of a larger impact investment firm. They wanted to establish a clear north star and impact goals that would differentiate their strategy, unify their team, and demonstrate leadership in systems change. They also sought support in building a theory of change, defining impact KPIs aligned with existing investments, and communicating impact to stakeholders through their inaugural impact report.

Our solution

Anthesis collaborated closely with the managing partners and deal teams to co-create a north star framework that defined system frictions, target outcomes, and long-term systemic impact across three core sectors.

We developed both fund-level and sector-level north stars, ensuring alignment across the portfolio. We then designed a practical theory of change template for investment teams and refined outcome indicators aligned with IRIS+ and other global standards.

Impacts

• The client was equipped with a clear, actionable framework that embedded impact into investment decision-making at both fund and firm levels.
• The north star and theory of change created a shared vision across teams, while the outcome indicators gave the client credibility with LPs and external stakeholders.
• The project provided the foundation for a robust impact reporting process and strengthened the firm’s positioning as a leader in systems-focused investing.