Report: Impact investing delivers market rate returns

A new and exciting report from the Global Impact Investing Network (GIIN) provides investors with a comprehensive review of available research to date on the financial performance of impact investments. The report evaluates over a dozen studies—produced by a wide range of organizations—on the financial performance of investments in three common asset classes in impact investing: private equity, private debt, and real assets, as well as individual investor portfolios allocated across asset classes.

ISSUE

The myth continues that impact investing results in reduced financial performance – but it’s simply not true. This fantastic report by GIIN pulls together evidence to show investors that market rate returns are achievable in impact investing.

EFFECT

The report provides investors with a comprehensive review of research on financial performance – in aggregate, impact investors can achieve market-rate returns. It also provides more transparency for the sector – which is what we need to grow the field!

ACTION

As an investor, we encourage you to read the report to help inform your investment decisions and strategies. In particular, take a look at the following case studies – these make for exciting reads:

• A McKinsey Impact investing finds its place in India report on private equity impact funds in India, from 48 exits investments achieved a weighted average of 11%
• A Wharton Social Impact Initiative report, evaluating performance of 32 private equity impact investment funds – with a whopping $1.7bn in assets and gross internal rates of return of 9.2%.