Social Impact Investing

More documents

Recommendations

Info

SOCIAL IMPACT INVESTMENT: BUILDING THE EVIDENCE BASE Report Brown and Norman (2011) Brown and Swersky (2012) Table 6.5. Some market estimates from industry reports Country Estimate \ Estimate Type Approach \Region MKT potential year England £165 million Potential Survey (78 SIFIs) 2010/11 England £750 million potential demand (£1bn in 2016) Potential Mixed, but essentially 2015 Bottom-up (starting from sector level demand) Survey (125 investors) 2013 Saltuk et al (2014) Global USD 10.6bn commitments Effective and Transactions Addis et al.(2013) AUS A$ 300m investment, Potential Top-down 2012 A$2 billion AUM Harji et al. (2014) CAN >CAN$1.6bn in AUM Effective and Survey & interviews 2013 Transactions Chua et al. (2011) Asia USD 44-74bn potential Potential Bottom-up (starting from 2020 AUM sector level demand) La Croix (2014) FRA EUR 6.02bn Solidaritybased Effective and Member reporting 2012 AUM Transactions Clark et al. (2013) Global USD 1.3bn total assets Effective Survey 2013 (12 funds) Weber and Scheck GER EUR 24m market Effective Bottom up (Sum of key SII 2012 (2012) volume investors) Hope Consulting USA USD 120bn (willingness Potential Survey (5,227 individuals; 2010 (2011) to invest in high 873 investment advisors; performing non-profits) 727 foundations) Freireich and Fulton US USD 26bn community Transactions N\A 2007 (2009) investing Notes: Estimate year refers to the date to which the estimate corresponds to (usually different from publication date). AUM stands for assets under management. Source: OECD, based on desk research. 6.66 The pure survey approach is followed by Saltuk et al. (2014) and is described in Box 6.2. As previously discussed, the key for successfully estimating the SII market is to guarantee that the sample is representative of the target population and that selection biases are mitigated. These remain key challenges in nearly all SII surveys because the boundaries of the target population (and definition) are still blurry. 6.67 A common caveat found in most industry reports relates to the strategies employed to estimate the current (or potential) market. Strong assumptions, such as constant shares (across time and geography) for the SII component of more aggregate measures can induce significant biases. Also, it is sometimes assumed a nexus\relationship between SII demand and supply that is not self-evident. For example, Chua et al. (2011) first calculate a sector-level SII demand projection assuming that 5% to 15% of total demand in each sector is satisfied through SII. Second, building on the demand estimate, the SII total invested capital is calculated through a formula based on estimated profit margins (by sector), return on equity and average cost of capital. 6.68 An additional caveat found in some industry reports is an emphasis on case studies and\or a selection of very successful SII transactions, investors or social enterprises (e.g. Clark et al., 2013). In particular if such small (and biased) samples are built upon to draw conclusions on the evolution of the SII market. It should be noted however, that such reports do not claim to size the whole SII market, but rather provide a kick-start to the discussion on building the evidence base. Avoiding selection biases is crucial and to do so, it is crucial to include in the samples not only the best and the good, but also the not so well performing cases (Bloom and Clark, 2011). The right incentives need to be devised in order to ensure the survey participation of, at least a representative sample of the target population. Providing feedback on interim survey results can be a good incentive to increase survey participation (Bloom and Clark, 2011). © OECD 2015 99
SOCIAL IMPACT INVESTMENT: BUILDING THE EVIDENCE BASE 6.6. Challenges in SII data collection 6.69 Scoping and sizing the global SII market is an enormous challenge. There is no consensual definition across different geographies and, above all, market players and researchers involved in SII. This implies that most market estimates are not directly comparable. Data is not being collected in a standardised and systematic way. 6.70 Most importantly, the lack of a consensual definition creates enormous challenges in identifying the target population — i.e. what exactly is being measured. For example, the scope of SII demand cannot possibly be identified as long as the boundaries of SII delivery organisations are blurry. Sampling schemes avoid the need to capture information about the whole population by focusing on a representative subset. However, sampling requires a clear definition of the population along with a number of key observable characteristics. So, in the case of SII, even if a sampling frame is properly devised and a robust sampling methodology is used, it results in biased estimates because it is unclear what the population of interest should be in the first place. In other words, it is not possible to find a subset of the populations that, according to some observable characteristics, is representative of the population. Therefore, estimates of SII scoping exercises are usually biased towards certain sectors, instruments or investor types. Accordingly, extrapolating total market sizes based on limited and unrepresentative samples should be regarded with caution. Chapter 4 of this report provides a structure that helps defining SII, the basis for engaging in data collection efforts. 6.71 In most measurement exercises, a common error is to exclude data that could be relevant (Type I error). In the case of SII, focusing on a narrower scope can result in significantly incorrect measurements. For example in Clark et al. (2013) only a selected number of intermediaries were analysed. The coverage in the series of GIIN\JP Morgan investor surveys (Saltuk et al., 2011; 2013; 2014) has been increasing, which reveals that some important investors might be (or have been) left out. 6.72 However, the early stage of SII market development can potentiate another type of measurement errors: including data that is not relevant for SII (Type II error). For example, applying the working definition described in Chapter 4, some delivery organisations can be wrongly included as SII investees. As discussed in that section of the paper, some certified B-corps may not be included in the potential demand for SII, because some of the certified companies would not meet the other necessary eligibility criteria for SII. Another example can be found in the ASSB dataset in the UK, which samples social enterprises from all existing firms with less than 250 employees (see Section 6.3). 6.73 The lack of a statistical definition of SII means that data is embedded in other broader data categories. Disentangling what is the subset of information that corresponds to SII can be extremely challenging. For example, in top-down approaches very strong assumptions are usually required, as discussed earlier in this section. In addition there are several SII data layers (e.g. social need granularity) which add substantial complexity to the analysis. A more granular approach may require data collection efforts that are more resource intensive and might entail additional confidentiality issues. The trade-off between level of detail and comprehensiveness of the information should be taken into account when deciding to collect data. As an example, for the purpose of analysing SII transactions, survey respondents might include investor platforms or the investors themselves. While focusing on investors provides a greater level of detail, it multiplies the number of respondents, thus increasing data treatment and survey management needs. 6.74 Finally, a common challenge in data collection is clarifying why, what and for whom data should be collected. This is particularly important because different goals require different data types (and data sources). Having a clear goal for data collection and well-defined data requirements is crucial. Two types of measurement objectives were identified in the OECD SII Expert Meeting in London. On the one hand, it 100 © OECD 2015
Page 2 and 3:
Turning the Improbable Into the Exc
Page 4 and 5:
Page 4 of 140
Page 6 and 7:
Page 6 of 140
Page 8 and 9:
6. 1 We disseminate Quarterly publi
Page 10 and 11:
Page 10 of 140
Page 12 and 13:
Page 12 of 140
Page 14 and 15:
23 “His master replied, ‘Well d
Page 16 and 17:
Page 16 of 140
Page 18 and 19:
Domini, shareholder advocacy and co
Page 20 and 21:
Two good things came out this resea
Page 22 and 23:
Fund Azzad Ethical Mid Cap Fund Bri
Page 24 and 25:
Fund Fund A Praxis Growth Index Fun
Page 26 and 27:
development in the US, or are made
Page 28 and 29:
concern, and submitting and voting
Page 30 and 31:
sustain land trusts, to a meeting o
Page 32 and 33:
Page 32 of 140
Page 34 and 35:
that are often excluded from market
Page 36 and 37:
Some organisations that have used S
Page 38 and 39:
it helps identify the critical sour
Page 40 and 41:
Page 40 of 140
Page 42 and 43:
and shareholder trust through posit
Page 44 and 45:
Approaches Some commentators have i
Page 46 and 47:
Wieland and Handfield (2013) sugges
Page 48 and 49:
EthicalQuote (CEQ) tracks reputatio
Page 50 and 51:
Displaying commitment to CSR is one
Page 52 and 53:
Brand Differentiation CSR can help
Page 54 and 55:
takes health and safety, diversity
Page 56 and 57:
advance with the practice of CSR wh
Page 58 and 59:
Stakeholder Influence One motivatio
Page 60 and 61:
Regulation Fifteen European Union c
Page 62 and 63:
jurisdictions. E.g., some jurisdict
Page 64 and 65:
"Impact investments can be made in
Page 66 and 67:
venture capital community. Investor
Page 68 and 69:
countries via local intermediaries.
Page 70 and 71:
determining views of affected commu
Page 72 and 73:
Another measure of economic impact
Page 74 and 75:
Page 74 of 140
Page 76 and 77:
The Board for the CCEG was to inclu
Page 78 and 79:
17 Love Relationship Online dating
Page 80 and 81:
Social Value Act 2012 legislation.
Page 82 and 83:
Development released a report outli
Page 84 and 85:
Benefits and Costs of Social Impact
Page 86 and 87:
UK On 18 March 2010, Secretary of S
Page 88 and 89:
US Massachusetts: The second of two
Page 90 and 91:
US Federal: The U.S. Department of
Page 92 and 93:
would establish a five-year pilot p
Page 94 and 95:
We are dedicated to finding ways to
Page 96 and 97:
In the past, public monies have oft
Page 98 and 99:
indicate that more Americans want t
Page 100 and 101:
Youth" to "Opportunity Youth" in or
Page 102 and 103:
income must file a Form 990. The fo
Page 104 and 105:
In its first three years, SIF has a
Page 106 and 107:
The Office of Social Innovation pri
Page 108 and 109:
of Management at UCLA; and launched
Page 110 and 111:
Page 110 of 140
Page 112 and 113:
Notes _____________________________
Page 114 and 115:
Page 114 of 140
Page 116 and 117:
Investing for Impact Case Studies A
Page 118 and 119:
Contents What is Impact Investment?
Page 120 and 121:
What is Impact Investment? Impact I
Page 122 and 123:
A case study approach in an asset a
Page 124 and 125:
Segments of Impact Investors High T
Page 126 and 127:
Foundations Like high net worth ind
Page 128 and 129:
in the developed and the developing
Page 130 and 131:
By creating mechanisms through whic
Page 132 and 133:
Asset Allocation Framework Asset cl
Page 134 and 135:
Cash Shorebank Deposit Program fina
Page 136 and 137:
Mezzanine/Quasi Equity Instruments
Page 138 and 139:
Venture Capital Bridges Ventures CD
Page 140 and 141:
Real Estate JP Morgan Urban Renaiss
Page 142 and 143:
absolute return (hedge funds) BelAi
Page 144 and 145:
senior debt Root Capital Impact Fir
Page 146 and 147:
Venture Capital Aavishkaar Impact F
Page 148 and 149:
eal estate Ignia Impact First Inves
Page 150 and 151:
senior debt Root Capital Layered St
Page 152 and 153:
The New York City Acquisition Fund
Page 154 and 155:
Appendix Methodology The Investing
Page 156 and 157:
Websites •• Bridges Ventures: h
Page 158 and 159:
Cash Quasi Equity Public Equity Buy
Page 160 and 161:
Page 116 of 140
Page 164 and 165:
SOCIAL IMPACT INVESTMENT: BUILDING
Page 166 and 167:
Page 168 and 169:
Page 170 and 171:
Page 172 and 173:
Page 174 and 175:
Page 176 and 177:
Page 178 and 179:
Page 180 and 181:
Page 182 and 183:
Page 184 and 185:
Page 186 and 187:
Page 188 and 189:
Page 190 and 191:
Page 192 and 193:
Page 194 and 195:
Page 196 and 197:
Page 198 and 199:
Page 200 and 201:
Page 202 and 203:
Page 204 and 205:
Page 206 and 207:
Page 208 and 209:
Page 210 and 211: SOCIAL IMPACT INVESTMENT: BUILDING
Page 299 and 300: Page 118 of 140
Page 301 and 302: Global Research 29 November 2010 Im
Page 303 and 304: Impact Investments: An emerging ass
Page 311 and 312:
Impact Investments: An emerging ass
Page 313 and 314:
Page 315 and 316:
Page 317 and 318:
Page 319 and 320:
Page 321 and 322:
Page 323 and 324:
Page 325 and 326:
Page 327 and 328:
Page 329 and 330:
Page 331 and 332:
Page 333 and 334:
Page 335 and 336:
Page 337 and 338:
Page 339 and 340:
Page 341 and 342:
Page 343 and 344:
Page 345 and 346:
Page 347 and 348:
Page 349 and 350:
Page 351 and 352:
Page 353 and 354:
Page 355 and 356:
Page 357 and 358:
Page 359 and 360:
Page 361 and 362:
Page 363 and 364:
Page 365 and 366:
Page 367 and 368:
Page 369 and 370:
Page 371 and 372:
Page 373 and 374:
Page 375 and 376:
Page 377 and 378:
Page 379 and 380:
Page 381 and 382:
Page 383 and 384:
Page 385 and 386:
Page 387 and 388:
Page 389 and 390:
Page 391 and 392:
Page 393 and 394:
Page 395 and 396:
Page 397 and 398:
Page 120 of 140
Page 399 and 400:
Advocacy Foundation Publishers The
Page 401 and 402:
XVI for Drug-Free Communities Landm
Page 403 and 404:
Vol. VIII 2022 ComeUnity ReEngineer
Page 405 and 406:
Vol. XV 2029 Inner-Cities Revitaliz
Page 407 and 408:
The e-Advocate Journal of Theologic
Page 409 and 410:
Issue Title Quarterly Vol. I 2015 I
Page 411 and 412:
The e-Advocate Juvenile Justice Rep
Page 413 and 414:
2018 - The Theological Law Firm Aca
Page 415 and 416:
About The Author John C (Jack) John
Page 417:
Page 140 of 140
show all

Social Impact Investing

You also want an ePaper? Increase the reach of your titles

Delete template?

Save as template?