Due Diligence Sharing Template

This template agreement is provided to you to facilitate due diligence sharing in impact investment.

ImpactTerms has observed that the investment ticket sizes tend to be smaller in impact investing, compared to traditional investments, resulting in the due diligence costs being disproportionately high. As a result, some impact investments may not be pursued due to these high transactional costs. To combat this, many investors are interested in collaborating on due diligence by sharing their due diligence reports, summaries, and due diligence questions.

This can, however, be hampered by the legal risk of being sued by the recipient of the shared due diligence report if the investment subsequently fails.

In light of the above, ImpactTerms has worked with a major international law firm to draft a template agreement to support due diligence sharing for impact investors.

The agreement includes a limitation on the liability of investors that share due diligence material with third party investors, clarification that this sharing of due diligence material does not constitute investment advice and a limitation on any further distribution of the due diligence material.

This template agreement is intended to be used for US investors. This may be used as the basis for an agreement with investors in other relevant jurisdictions, namely the UK and the European Union.

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