The majority of impact investments are meeting or exceeding financial performance expectations, according to a study released Wednesday by ICM Institute, a non-profit research arm of the Impact Capital Managers, an association of private capital funds, and global law firm Morrison Foerster.

The report, “Alpha in Impact: Strengthening Outcomes: Impact and Financial Value at Exit,” covers a sample of 230 exits from ICM members managing market-rate impact funds. It found that 65% of impact exits met or exceeded financial performance expectations, and 81% of those exits met or exceeded impact expectations.

While 42% outperformed financial expectations and 23% were at target, 35% underperformed, the report said. In terms of impact performance, the figures are similar, with 42% outperforming impact expectations, 39% at target and 19% underperforming.

Of the 230 exits, 57% resulted in a sale to a corporation or other strategic buyer, 23% were sold to financial buyer, 10% were liquidations, 8% were IPOs and the rest were “other.”

The report includes 11 case studies featuring the portfolio companies of ICM members, including KKR & Co., TPG’s The Rise Fund, HCAP Partners, SJF Ventures, Achieve Partners, Energy & Environment Investment, Pangaea Ventures, New Markets Venture Partners and St. Cloud Capital.

Private markets investors managed $322.2 billion in impact investments as of 2022, and more are nearing a potential exit, according to a news release about the study. With more general partners making impact commitments to their limited partners, either in main fund documents or in side letters, “the need to comply with such mandates, achieve impact goals and protect the mission orientation of companies has led to increased attention to the structuring of exit events,” the news release said.

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