Globally, impact investing has come of age, growing at ~24% to USD 15 bn in annual amount invested and (AUMs) of impact investors have grown to USD 77.4 bn in 2015, conclusively demonstrating growing investor confidence. Emerging markets contribute 50% of this.
Cambridge Associates and the Global Impact Investing Network have collaborated to launch the Impact Investing Benchmark, the first comprehensive analysis of the financial performanceRead more!
In June last year Prime Minister David Cameron announced, during the UK’s presidency of the G8, the launch of an independent Taskforce and set it the ambitious objective of reporting on ‘catalysing a global market in impact investment’ in order to improve society.
In recent years, impact investing has captured the attention of leaders in finance, philanthropy, business, and government seeking innovative ways to help solve some of society’s most pressing issues. It harnesses the effiiency and discipline of private capital markets to address the root causes of social and environmental problems.Read more!
This report highlights strategies for how the government can partner with impact investors to unleash new capital, talent, and energy for social, economic, and environmental good. Members of the National Advisory Board, who produced this report along with input from many others, are part of a growing group of skilled investors, entrepreneurs, and intermediaries who believe that capital can be used more reliably and effectively as a tool for long-term progress. Together, they have explored a range of government policies to advance impact investing in this report. The policies recommended build on the historical successes of the field. Each member of the NAB brings different priorities and perspectives to this effort, with common viewpoint that impact investment sector is at an inflection point where smart policy can scale smart capital for social benefit.Read more!
This report is published under World Economic Forums Mainstreaming Impact Investing initiative, with the objective to provide an initial assessment of the sector and identify the factors constraining the acceleration of capital into the field of impact investing. The report is intended for investors interested in clarifying what impact investing is and what it is not, what the current sector landscape looks like and what is required for the sector to progress into the mainstream.Read more!
This report provides an overview of the social impact investment market. The findings are based on several research activities, including a screening of almost 200 social impact investment-related reports in the major languages of the G8, a dedicated online survey distributed to over 250 market players from around the world, and a media search of 26 terms (translated across the G8 languages) related to “social impact investment”. The report first describes the landscape of social impact investing and defines the term. It then places social impact investing in the broader context of three megatrends identified through the research: massive pent-up demand at the BoP, the need for radical resource efficiency and green growth, and new approaches to the provision of public services. The report finishes by looking at the role different groups of investors play in the market, ranging from philanthropic investors such as foundations, angel and venture stage investors, private and institutional investors, financial services institutions, and government.Read more!
This report analyses the seven key problems facing institutional investors wishing to participate in impact investing, and provide a series of recommendations for key industry players and public policy-makers. The report especially focuses on innovation in financial instruments, and host of regulatory mechanisms and policy initiatives to remove the barriers related to secondary problems. The report integrates various findings and propositions into a framework to evaluate National Impact Investment Readiness (NIIR), which can be used by both the financial industry and policy-makers in low-income and developing countries to assess the “investability” of emerging impact investment markets in terms of making an impact in these countries, all while achieving returns that are in line with their fiduciary obligations.Read more!
This report springs from a point of view shared by Monitor and Acumen Fund—that philanthropy is the essential but often overlooked catalyst that unlocks the impact potential of inclusive business and impact investing. The key themes discussed here in the report are based on the sum of Monitor’s extensive research into more than 700 inclusive businesses in Africa and India, and Acumen Fund’s decade of experience as a pioneering impact investor. They also draw together the experiences and observations of dozens of impact investors, grant funders, academics. This report has focused on developing an in-depth, demand-side understanding of the needs and challenges facing inclusive businesses.Read more!
This report assesses the progress made over the past four years in building the global impact investing industry. It is divided into three parts: first, context, which introduces the structure of and key actors in the impact investing field; next, an examination of the recent achievements and challenges in building the impact investing marketplace; and finally, presentation of a set of recommendations for accelerating the rate of growth of the field.Read more!
This report focuses on the U.S.-based impact investment funds that invest in emerging markets. The main purpose of the report is to provide guidance to existing and future impact investment funds that target emerging markets. The report also compares inputs in the decision making process of impact investment funds with those of traditional venture capital funds with the hypothesis that the priorities of investment decisions for venture capital funds should vary from impact investment funds as the former is focused solely on financial returns and the latter strives to achieve both financial and social returns. Further, this report provides some cursory data that could serve as a baseline for more comprehensive research in the future.Read more!
Impact Investing in Emerging Markets, May 2011 (Responsible Research)
This report debates the definition of impact investing and presents some of the current efforts to formulate standards for measuring impact. The report analyses a number of social and environmental ventures from selected sectors and geographies, with the aim of unveiling the opportunities and challenges associated with impact investments. Further, the report assesses a number of factors for investors to consider when building an impact portfolio and analyses the current portfolio of projects undertaken by financial institutions and PE firms active in the social arena.Read more!
This report explores the role that impact investing can play in the developing countries of the Asia-Pacific. It examines its potential market, as well as the challenges that must be overcome in order for its key benefits to be realized. It is primarily aimed at three audiences. First, socially minded investors looking for new and better ways to channel their financial resources. Second, companies searching for emerging market opportunities that offer them exposure to the social and environmental needs that underpin development in the Asia-Pacific. Lastly, it seeks to encourage existing and would be impact investing practitioners to understand that there is no shortage of capital in Asia, but they will need to reach out to investors with attractive offerings. This report also strives to raise awareness of a new breed of investors – one with the common objective of addressing Asia’s pressing needs, and which is willing to engage, exchange ideas and learn from one other. This report debates the definition of impact investing and presents some of the current efforts to formulate standards for measuring impact. The report analyses a number of social and environmental ventures from selected sectors and geographies, with the aim of unveiling the opportunities and challenges associated with impact investments. Further, the report assesses a number of factors for investors to consider when building an impact portfolio and analyses the current portfolio of projects undertaken by financial institutions and PE firms active in the social arena.Read more!
The aim of the research is to understand the buy side of the market for impact investing in Asia and the Pacific. Specifically, the emphasis is on understanding the scale and scope of capital pools available for impact investment in sustainable social enterprises (SEs) in Asia and the Pacific in the coming years, the interest of investors in utilizing a “social stock exchange” as part of their impact investment strategy in the region and the design features that such a social stock exchange must incorporate in order to attract these impact investors. This report provides insights to investors keen to invest in the region, financial intermediaries that advise SEs on capital raising, and developers of platforms seeking to connect SEs in the region with impact investors. Read moreRead more!
This report is intended for the investment community and aims to help investors understand this emerging industry. Many investors have begun to explore Impact Investments by investing in microfinance in developing countries or community development projects in the US. However, there is still a perception that Impact Investment always entails a sub-market financial return, which this report demonstrates is far from the case. The report employs a case study approach, mapping examples of Impact Investments on a traditional asset allocation framework. This structure illustrates the diversity of products that are being developed, where they reside within a traditional asset allocation framework and the types of opportunities that are available to date for the investors.Read more!