WHAT IS IMPACT INVESTING?

Simply stated, impact investing is defined as investing with the specific objective of achieving both a competitive financial return and positive, measurable economic, social and/or environmental impact. More broadly, impact investing is an emerging asset class that has captured the attention of some of the most sophisticated money managers in the world, who understand the power of mobilizing private capital to help solve some of the world's biggest social and economic challenges. JP Morgan Global Research reports that impact investing is expected to constitute 5% to 10% of investor portfolios within 10 years.1 Further, according to the U.S. State Department, this emerging class of investors is generating business opportunities that analysts estimate could reach between $500 billion and several trillion dollars over the next decade.2

PROJECTED GROWTH OF IMPACT INVESTMENTS3


"By 2025, annual consumption in emerging markets will reach $30 trillion—the biggest growth opportunity in the history of capitalism."4
 





 

 

 

 

 


 

1) Insight into the Impact Investment Market, JP Morgan, December 2011
2) U.S. State Department, 2012 - The Secretary's Global Impact Economy Forum
3) Latin America Private Equity & Venture Capital Association, Global Impact Investing Network and J.P. Morgan, May 2012
4) McKinsey & Company, Winning the $30 Trillion Decathlon, 2012