Social Impact Investing

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Contents What is Impact Investment?.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 Executive Summary.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4 The Impact Investment Sector.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6 Main Findings and Conclusions.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10 Case Studies and the Asset Allocation Framework.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14 Financial First Cash Shorebank Deposit Program. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17 senior debt BlueOrchard .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18 Mezzanine/Quasi Equity Instruments Triodos Investment Management. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19 Public Equities Generation Investment Management . . . . . . . . . . 20 Venture Capital Bridges Ventures CDV Funds.. . . . . . . . . . . . . . . . . 21 Private Equity ProCredit Holding.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22 Real Estate JP Morgan Urban Renaissance Property Fund.. . . . . 23 other real assets Lyme Northern Forest Fund.. . . . . . . . . . . . . . . . 24 absolute return (hedge funds) BelAir SA Fund.. . . . . . . . . . . . . . 25 impact first Cash Charity Bank.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 26 senior debt Root Capital .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 27 quasi-equity instruments Bridges Ventures Social Entrepreneurs Fund. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 28 Venture Capital Aavishkaar.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 29 Private Equity Acumen Fund.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 30 real estate Ignia. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 31 other real assets Pico Bonito.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 32 Layered Structures. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 33 International Finance Facility for Immunisation (IFFIm).. . . . . . . . . . 34 The New York City Acquisition Fund.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 35 Acknowledgements.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 36 Appendix. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 37 1
From David Blood, Senior Partner of Generation Investment Management It has never been a more appropriate time to re-consider the role of capital markets in creating value for society. What has become exceedingly clear to us here at Generation is that sustainability and long-term value creation are inextricably linked. We hope by our participation in this study we can help demonstrate that “Impact Investment” makes sense even for mainstream investors. Generation Investment Management is proud to support this report by Bridges Ventures and Parthenon, as well as support the work of the Global Impact Investment Network (GIIN). We look forward to helping expand the community of Impact Investors, and we think now is the time for these activities to move from niche to mainstream. Today, the sustainability challenges the planet faces are extraordinary and completely unprecedented. Even beyond the bailouts and recent volatility, the challenges of the climate crisis, water scarcity, income disparity, extreme poverty and disease must command our urgent attention. Philanthropy alone cannot provide the full set of solutions needed to address these challenges. Now, more than ever, capital markets need to play a role in addressing global sustainability challenges. Whether you are a private individual, family office, investment bank, foundation endowment, or pension fund, this report should be helpful in providing a view across asset classes to highlight the variety of opportunities and ways to invest for impact. We hope you will join us on the path to create a more sustainable form of capitalism. David Blood Senior Partner of Generation Investment Management From Judith Rodin, President of Rockefeller Foundation The Rockefeller Foundation supports innovative solutions to many of the world’s most intractable challenges, affirming its mission, since 1913, to “promote the well-being” of humanity. During the last several years, Impact Investing has clearly emerged as one such solution: an innovation that can help more people tap into expanding markets while strengthening their resilience to 21st century risks. Government funding, international aid and philanthropic donations alone are insufficient to achieve the world’s development aspirations, especially against the backdrop of global recession. Private investment capital, therefore, will need to complement traditional resources or solve problems on a larger scale. Fortunately, the emerging Impact Investing industry enables investors to direct their resources toward multiple bottom-line returns – financial and social or environmental. This means doing good with the market, not only doing well in it. The Rockefeller Foundation recently launched a major initiative on Harnessing the Power of Impact Investing because we believe the industry could potentially become a powerful complement to our – and others’ – work. Through this initiative, we organised an inspiring group of partners — ranging from entrepreneurs starting Impact Investment banks and wealth management firms to leaders of major pension funds and investment banks — to help accelerate this new industry’s evolution. A mature impact investing industry will enable more investors to address a wider range of social and environmental challenges more efficiently, making our job easier in turn. This new report, Investing for Impact: Case Studies Across Asset Classes, is particularly encouraging both for what it describes and for what it signals about how Impact Investing is evolving. It provides fresh evidence of the diversity of investment opportunities now available and, importantly, the range of investors this industry now counts among its ranks. The detailed case study approach complements the Monitor Institute’s analysis, Investing for Social & Environmental Impact, which was released earlier this year. Together, this seminal scholarship lays groundwork for new and clearer understandings of the industry. The process by which this report materialised is also encouraging. The 50 Impact Investing pioneers who contributed their time – and opened their books – to the report’s authors exemplify the collaborative commitment necessary for this new industry to reach its potential. The Global Impact Investing Network, whose founding members constitute many of the investors profiled in this document, will draw on this commitment and provide a platform for keeping these case examples “live.” We are also grateful to the Parthenon Group and Bridges Ventures for their leadership and generosity in producing this study as a pro bono contribution to the field. I hope this publication makes plain exactly why my colleagues and I are so excited about Impact Investing’s possibilities. We look forward to working with you to build an industry that generates many more promising case studies of high-Impact Investment. Judith Rodin President of the Rockefeller Foundation 2 Investing for Impact: Case Studies Across Asset Classes
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Approaches Some commentators have i
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Stakeholder Influence One motivatio
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Regulation Fifteen European Union c
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jurisdictions. E.g., some jurisdict
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"Impact investments can be made in
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venture capital community. Investor
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Page 112 and 113: Notes _____________________________
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Page 116 and 117: Investing for Impact Case Studies A
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Page 164 and 165: SOCIAL IMPACT INVESTMENT: BUILDING
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SOCIAL IMPACT INVESTMENT: BUILDING
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Global Research 29 November 2010 Im
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Advocacy Foundation Publishers The
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XVI for Drug-Free Communities Landm
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Vol. VIII 2022 ComeUnity ReEngineer
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Vol. XV 2029 Inner-Cities Revitaliz
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The e-Advocate Journal of Theologic
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Issue Title Quarterly Vol. I 2015 I
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The e-Advocate Juvenile Justice Rep
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2018 - The Theological Law Firm Aca
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About The Author John C (Jack) John
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