PE sponsors committed to impact investing can pursue that mission via multiple methods. The most obvious is through the types of ventures in which they invest, which is the standard way most industry observers think about impact investing. For sponsors willing to put their own “money where their mouth is,” however, another approach is to incorporate impact measures into their PE fund structures, terms and compensation. A report (Report) recently issued by Impact Capital Managers and Morrison & Foerster (MoFo) explored a range of legal innovations in impact investing, including impact-protecting tools for the capital aggregation phase of a fund’s life. This article summarizes the key takeaways from the Report that are most relevant to subscribers, including how impact can be addressed in track record reporting, side letter negotiations with LPs, compensation mechanics, fund durations, investment mandates and fund vehicles/structures. For further insights from MoFo, see “Court Fines Former Apollo Partner $240K for Misallocating Personal Expenses; Places ‘Significant Blame’ on Firm’s Internal Practices” (Jan. 19, 2021); and “Not Just GDPR: Examining the Other European Privacy Laws” (Mar. 10, 2020).