Transition finance portfolios face unique challenges due to the absence of historical benchmarks, necessitating new approaches for establishing investment targets and returns.

Unlike traditional investments with shorter timelines, transition finance often involves long-term projections of 15 to 30 years, requiring careful consideration of future trends and risks.

Building effective benchmarks in transition finance demands extensive use of simulations and quantitative analysis, as traditional metrics may not apply.

Each investment strategy within transition finance, whether growth, public, alternative, or infrastructure, requires tailored analytical approaches rather than a uniform metric.