Impact investing hits its stride
The impact-investing sector has $228bn in assets under management, more than double the mid-2017 total. Impact investments are made with the intention of generating social and environmental impact alongside gaining a financial return, with funds largely looking to areas such as sustainable agriculture, renewable energy, conservation, microfinance, and affordable and accessible basic services including housing, healthcare, and education.
Investors pumped close to $35.5bn into more 11,000 deals last year and expect to increase investment a further 8% over the remainder of 2018, according to the Global Impact Investing Network. The annual financial return rate stands at a healthy 13%, with almost three-quarters of investors targeting climate change initiatives.
A majority of investors report that their investments have met their expectations for both impact (82%) and financial (76%) performance since inception. Another 15% report outperformance across each of these dimensions.