Investing for Impact
Case Studies Across Asset Classes
Investing for Impact COVER
Bridges Ventures and The Parthenon Group
Here's a word of introduction on “Investing for Impact." This publication is written for the investment community. The report employs a case study approach, mapping examples of impact investments on a traditional asset allocation framework and from these cases it draws findings that help investors understand this emerging industry.
Why Impact Investments?
Governments and charities do not have sufficient capital nor the complete skills set required to solve the world’s pressing challenges. At the same time, the recent economic crisis has shaken established orthodoxies about the risk and return profiles of traditional investments. The Impact Investment sector is emerging as a partial answer to the twin challenges that these two realities present: Impact Investment unlocks substantial capital to build a more sustainable and equitable global economy while allowing for diversification across geographies and asset classes.
A plethora of investments is emerging across multiple asset classes that provide investors with market-rate investments, or for more altruistic investors, substantial social impact, while still generating positive financial returns. The old binary system—the widely-held belief that for-profit investment could only maximise financial return and social purpose could only be pursued through charity—is breaking down.
