What’s on Goodwell’s radar? - June 2025
As global conflicts escalate and ordinary people continue to bear the brunt of the hardship, our team at Goodwell is focussing all the more intently on doing good in the world. Part of that means emphasising knowledge sharing and encouraging discussion, whether through our regularly scheduled Round Tables, meeting with our peers in the impact investing space, or of course, our always-interesting team chat. Here’s a taste of what’s been on our radar over the past few weeks:
IRRs: Useful or manipulative?
It’s reporting season here at Goodwell, and while we check and double-check our numbers, it’s a topic on all of our minds. With KPIs, YoYs, and ROIs tumbling around our heads, it’s no surprise our team has been discussing this Financial Times piece on “the delusion of private equity IRRs”:
“The Internal Rate of Return is a powerful tool — but it’s not a rate of return. It is a mathematical artefact. It assumes every dollar distributed is reinvested at the same rate it was earned. It’s not realistic, not additive, not comparable to market indices — and not designed to be used the way the industry uses it.”
The pros and cons of the secondaries boom
While Goodwell’s markets in Africa have shown signs of recovery, global markets for private equity (PE) and venture capital (VC) remain challenging, which in turn impacts both fundraising and exits. With a large overhang of exits, investors have limited capital to invest in new funds and follow-ons. Overall fundraising in private markets fell about 45% in recent times, but the market is now experiencing a boom in secondaries. Are they a safe option, or should we sit it out (*cough* the latter *cough*)? The Institutional Investor’s “The Troubles Plaguing Private Capital Create a Windfall for Secondaries” takes a closer look at secondaries’ pros and cons.
Knowledge sharing with our peers
Goodwell recently co-hosted a fundraising breakfast with Avenue Consultancy at our Amsterdam office, with representatives from Invest International, Lendahand, ILX Fund, Liliane Fonds, and Sustainable Capital Group in attendance. Our goal was to create space for knowledge-sharing and connection; we often see each other at events, but rarely get the chance to sit together and exchange experiences more deeply.
A few key takeaways stood out, which we’ll continue to explore more in the future:
- The tension between prioritizing financials vs. impact still runs deep; balancing Limited Partner (LP) expectations, General Partner (GP) mandates, and fundee realities remains a moving target.
- Country risk perceptions continue to limit funding for strong businesses which can be funded in emerging markets.
- The rise of debt and crowdfunding is reshaping the impact investing space.
- Fundraising success is increasingly tied to trust, storytelling, and strategic alignment.
- Positioning is everything for GPs – with “differentiation fatigue” creeping in, newsletters, social campaigns, and impact reports are starting to blur together
- Seeing is believing – getting investors closer to the ground truly shifts how they engage.
As always, we’ll keep learning, sharing, and challenging each other — and the sector — to do better. If any of these topics resonate with you, we’d love to hear your thoughts. Let’s keep the conversation going.