Impact investing takes the best of the for-profit and the nonprofit systems and blends them to yield social, environmental and financial returns.
These ventures attack world problems with an effectiveness and efficiency that neither system alone can achieve. Some are more profit-focused and opportunity driven, while others are in service of nonprofit causes and fill a gap in the system, providing lower relative financial returns. All are taking the best of the markets and entrepreneurism and applying them to better outcomes for people and planet.
Over the past 20 years, a powerful global movement has emerged. By applying market-based solutions to create sustainable business models that address social and environmental issues, innovative entrepreneurs are tackling the world's most pressing problems including poverty, education, health and climate change. These world-changing efforts translate into investment opportunities across microfinance, renewable energy, sustainable agriculture and more.
It's called impact investing and it's changing the world for the better. But with more capital, the full potential of impact investing can be realized.
There are many more entrepreneurs with world-changing solutions and many more investors who would like to join the ranks of those doing good while doing well. Based on a groundbreaking study, Money for Good published in May, 2010 by Hope Consulting, 48 percent of high net worth U.S. investors were "interested" and "wanted to learn more" about the concept of impact investing.
According to Money for Good, the level of potential investment amounts indicated by survey respondents put market demand at an estimated $120 billion. ImpactAssets and others in the field are working to overcome the barriers that are preventing this flow of capital from reaching its full potential for positive impact.
As the field continues to grow and evolve, individuals and their advisors are turning to companies like ImpactAssets. ImpactAssets provides a pathway to learn about the latest opportunities, offers the ability to co-invest and collaborate across the for-profit and nonprofit arenas, and provides infrastructure that enables clients and their wealth advisors to participate in impact investments either through their philanthropic or private asset bases.