Global Impact Investing Network - 0 views
www.thegiin.org/...index.html
GroundUp Validation Socially_Responsible_Investing Impact 3BL Financing Non-Profit
shared by Janine Shea on 29 Nov 12
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Impact investments are investments made into companies, organizations, and funds with the intention to generate measurable social and environmental impact alongside a financial return.
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A rapidly growing supply of capital is seeking placement in impact investments across geographies, sectors, and asset classes, with a wide range of return expectations.
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This investment interest is sparking the emergence of a new industry that operates in the largely uncharted area between philanthropy and a singular focus on profit-maximization.
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Prominent family offices are actively seeking investment partnerships that can help them source, vet, and execute impact investment deals in sectors ranging from sustainable agriculture to healthcare to urban infrastructure.Private foundations are seeking to partner with investment banks and development finance institutions to make impact investments in areas related to their social missions.
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Despite this momentum, the weakness of market mechanisms (such as rating agencies, market clearinghouses, syndication facilities, investment consultants) creates debilitating inefficiency that hampers investment. The nascent industry remains beset by inefficiencies and distortions that currently limit its impact and threaten its future trajectory: Investors are largely unable to work together effectively given a general confusion of terminology. This limits investors' ability to share knowledge and co-invest, which perpetuates inefficiency and fragmentation in the field. The absence of basic market infrastructure, like standards for measuring and benchmarking performance, constrains impact and capital flows.
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Clients of leading private banks and pension funds are calling on their investment managers to offer impact investment options.
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The combination of these factors - barriers to information flows and collaboration, a lack of infrastructure, and an underdeveloped ecosystem of intermediaries and services providers - threatens the evolution of the impact investing industry and, ultimately, its ability to realize its potential for social and environmental impact