Impact investing is about a very simple, progressive idea: markets and money for good. Every month, PCV will give you a roundup of what’s new in the field, what conversations are taking place, and how you can get involved. Here are some highlights from November and early December:
Big News In Impact Investing Policy
The 7th annual Social Finance Forum took place in Canada last month! It was hosted by MaRS, and engaged leaders and practitioners from across the diverse social finance scene. PCV was in attendance, and we explored advancements from around the world — including the launch of our IIPC project’s 2014 report: Impact Investing In 2014: A Snapshot Of Global Activity.
This first-of-its-kind publication broadens the conversation from what public policy could enable, to what public policy is enabling in so many different countries and markets.
Pay-For-Success Scales Up
The first county-wide Pay for Success initiative was launched in Cleveland last month. Enterprise Community Partners (a co-convener, along with PCV, of the AI3) is collaborating on it. The $5m PFS project aims to reconnect foster children with caregivers in stable, affordable housing.
“Homeless families with children in out-of-home foster care should have access to programs that allow them to reunite with their children and provide a stable housing environment to help children thrive,” said Cuyahoga County Executive Ed Fitzgerald.
The project’s funding model drives government resources toward social programs that prove effective for the people who need them most. It expands available funding for nonprofit service providers and tracks the effectiveness of programs over time to ensure funding is directed toward programs that succeed in measurably improving the lives of people in need.
Impact Investing For Family Foundations and Philanthropists
Family foundations and family offices act as stewards of the wealth of high-net-worth individuals and their families. Unfortunately, much of the invested wealth generated by one generation of a family drops an estimated 60% by the end of second generation, and a staggering 90% by the end of third.
To keep multiple generations of a family invested in the social intents and mission of the original trust, many family offices are now exploring whether impact investing is a way to unite families around values and positive legacies. An impact investing strategy aligned with family values can help to engage a younger generation in the leadership and management of a family office.
Crowdsourcing For CDFIs
A new crowdsourcing platform developed in DC — City First — will allow people to invest in CDFIs, and get their money to work in underserved communities. There are about 800 CDFIs nationwide (including PCV!) with $50 billion in assets. The founders hope their crowdfunding platform will attract a several dozen CDFIs, thousands of investors and hundreds of millions of dollars in investment within a year or two.
New Report Finds $23 Billion Market For Investing In Conservation
That’s billion with a “b”! A new survey of impact investing around conservation shows a market of approximately $23 billion, and finds that investments in this space are expected to more than triple over the next five years. Impact investment is one way to address the critical global deficit in conservation funding. The report also finds that a substantial amount of potential private capital has not been deployed, demonstrating a significant need for more risk-adjusted investment opportunities. Read more here!
London Calling: Hedge Funds For Social Good
Cheyne Capital — a $6 billion hedge fund based in London — hopes to give back to social causes with a new fund that buys property which it will then rent to organizations that deliver services like affordable housing, aid for the elderly, and care through the National Health Service. The fund aims to balance financial and social returns. A partner organization, New Philanthropy Capital, will also sit on the investment committee to help evaluate potential investment opportunities.