Impact Investing is on The Rise
Impact investing has been developing and evolving over the last decade as consumers and investors alike demand solutions to the world’s biggest environmental and global health issues.
The big question is, who are the investors that are putting their money into impact investing, and is your firm one of them?
Institutional and Individual Investors Exploring Impact Investments
Individual and institutional investors alike have been attracted to impact investment opportunities. TPG, Blackstone and now KKR are among those who’ve created impact investing platforms, or raised large funds; KKR just raised $1.3 Billion for their impact investing fund led by public pensions, family offices and wealthy individuals.
The Global Impact Investing Network (GIIN) gives the following list of types of impact investors:
- Fund Managers
- Development finance institutions
- Diversified financial institutions/banks
- Private foundations
- Pension funds and insurance companies
- Family Offices
- Individual investors
- Religious institutions
GIIN Investor Council
In fact, GIIN’s investor’s council is made up of “asset owners and asset managers with diverse interests across sectors and geographies, the Investors’ Council provides a forum for experienced impact investors to strengthen the practice of impact investing.” It lists over 50 firms with a dedicated impact investment strategy.
If we just judge from the GIIN’s Investor Council list, it looks as if the majority of organizations involved in impact investing are non-profit foundations like the Rockefeller Foundation, Christina Super, and Ford Foundation to name a few. Asset managers and finance institutions or banks come in second as the most popular investor category with firms like UBS, JP Morgan, Morgan Stanley, and Inter-American Development Bank Group.
Asset managers, investment advisory, venture capital, and private equity are some of the other investor categories in the GIIN Investor Council.
The Trajectory of Impact Investing
So what does the typical impact investor look like? It varies, but GIIN reports that impact investing across all investing platforms and instruments is rising:
“While some investors have been making impact investments for decades, recently there has emerged a new collaborative international effort to accelerate the development of a high- functioning market that supports impact investing. While this market is still relatively new, investors are optimistic overall about its development and expect increased scale and efficiency in the future.”