Investing for Impact: Case Studies Across Asset Classes
There has been rising interest within the investment community in making sustainable investments which generate a positive social or environmental impact as well as financial, often market-rate, returns. Impact investment funds are attracting investors ranging from high-net-worth individuals to institutional investors, corporations and foundations. The newly published Parthenon/Bridges report, titled Investing for Impact: Case Studies Across Asset Classes, examines the growing Impact Investment sector and illustrates the perspectives of over 50 pioneers in this increasingly vibrant space. To bring greater understanding of the sector, the report presents a system for cataloguing investment opportunities using the traditional asset allocation model familiar to the investment community. 18 case studies have been documented in detail to illustrate the diversity of opportunities by asset class, risk and investor motivation.
Private philanthropy and government subsidies are no longer sufficient sources to address social and environmental concerns. The challenging current economic conditions – plummeting endowments and the shrinking budgets of non-profit organizations and governments – combined with the threat of climate, render impact investments more important than ever. Mobilizing the capital markets to help solve deep seated social and environmental challenges on a large scale is key to creating a more sustainable form of market capitalism.