Impact investing is about using markets and money for social good. Impact investing is built on the belief that financial tools and private capital can play a powerful role in solving the massive global challenges of our day, and that capital markets should work for good as well as profit. This vision is realized through investments made into companies, organizations, and funds with the intention to generate measurable social and environmental impact alongside a financial return.
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 January:
[custom_headline type=”left” level=”h3″ looks_like=”h4″]Challenging The Traditional Foundation Model[/custom_headline]
The Heron Foundation, whose mission is to help people and communities help themselves out of poverty, is among a growing number of institutions and investors working to evolve philanthropy to match the needs of modern society. To do that, they’re calling on their peers to jettison outdated operating models that leave resources untapped in the face of systemic social ills. (Many U.S. philanthropic institutions are only structured to meet—and rarely to exceed—the IRS requirement of five percent minimum annual charitable payout.)
In “Building a Foundation for the 21st Century,” Heron President Clara Miller makes the case that the modern economy demands a different practice of philanthropy, one that makes use of all of its resources to actively engage with the capital markets for the public good. Read more >
[custom_headline type=”left” level=”h3″ looks_like=”h4″]Predictions For Impact Investing In 2016[/custom_headline]
We’re looking for impact investing to accelerate in 2016. What’s going to drive that? The rise of frontier capital, mainstreaming of social impact in investing, and a redefinition of what philanthropy is and does. Check out this great roundup of marketplace predictions from investors and observers who have gazed into their crystal balls to start the new year. Read more >
Speaking of the year ahead: It’s no secret that the status quo of how capital is currently deployed both in philanthropy and government aid are insufficient to solve the world’s intractable social and environmental issues. What will it take to create greater growth in impact investing to fill the gap across asset classes? Fran Seegull, CIO of ImpactAssets, discusses getting impact investing to scale. And Margot Kane, vice president of strategy at Calvert, discusses how to get capital to the high-impact projects that need it the most.
Our goal is for impact is to become the third dimension against which we screen investment—next to risk and return. To get there, we need to show sustained growth and sustained success. Fortunately, we have four opportunities to source massive amounts of fresh investments across different asset classes and geographies to make 2016 really count. Read more >
[custom_headline type=”left” level=”h3″ looks_like=”h4″]New Frontiers In Gender-Lens Investing[/custom_headline]
There’s a growing body of evidence that gender equality and women’s leadership and participation boosts the performance of companies and countries. So what do we do about it? Suzanne Biegel has launched Women Effect to help entrepreneurs, investors, advisors, and others figure that out together. Biegel, a longtime angel investor, wrote recently about training herself to look at her own portfolio through a gender lens. Women Effect will help others do the same. Read more >
[custom_headline type=”left” level=”h3″ looks_like=”h4″]Impact Investing and Racial Inequality[/custom_headline]
A year ago, Pope Francis called impact investment a critical strategy for “combating an economy which excludes and discards.” So where are impact investors in the discussion of disparities in prison rates, police violence, and poverty? Impact investment can be an important tool in addressing this gap, but only if impact investors move their money and think of their work as not only placing investments in individual funds or businesses, but as part of an active strategy to foster systemic change. Read more >
[custom_headline type=”left” level=”h3″ looks_like=”h4″]Pay For Success – With A Twist![/custom_headline]
Ever wonder how to adapt the pay-for-success model to market-based social enterprises and inclusive businesses? We know a good deal about social and development impact bonds, which use pre-defined outcome targets and pay out premiums if these goals are achieved. They primarily engage and fund nonprofits. And, at least so far, they’ve had specific missions. But impact bonds have another positive side effect: they pave the way for embedding impact performance into financial solutions. Read more >
[custom_headline type=”left” level=”h3″ looks_like=”h4″]How To Invest In A Local Economic Engine[/custom_headline]
If you’ve spent any time exploring local investing, you’ve probably encountered CDFIs like Pacific Community Ventures. And it’s not unlikely that you were slightly confused about what, exactly, these organizations are. CDFIs can be befuddling to a new investor, in part due to the many shapes and sizes in which they come. So what kind of investment opportunities do CDFIs offer? And what should investors look for and consider before investing in one? Read more >
[custom_headline type=”left” level=”h3″ looks_like=”h4″]An Impact Investing Framework For Family Offices[/custom_headline]
What do people really mean when they talk about “impact investing?” Why do people make impact investments, and how do they do it? What counts, and what doesn’t? This primer provides family enterprises with clear explanations of the “why,” “how,” and “what” of impact investing. Read more >