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Andy Milner

Impact investing making an impact?

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Andy Milner

Impact Investing is a really interesting area that I haven't had too much exposure too. Would be interesting to hear peoples' thoughts on whether and when this is going to start making a significant impact to the industry.

 

An interesting article from McKinsey (albeit from a limited data sample), indicated that the returns can be quite strong:

 

Quote

Impact investments in India have demonstrated how capital can be employed sustainably and how it can meet the financial expectations of investors. We looked at 48 investor exits between 2010 and 2015 and found that they produced a median internal rate of return (IRR) of about 10 percent. The top one-third of deals yielded a median IRR of 34 percent, clearly indicating that it is possible to achieve profitable exits in social enterprises.

 

a-closer-look-at-impact-investing-526144
WWW.MCKINSEY.COM

Impact investing directs capital to enterprises that generate social or environmental benefits. Our findings challenge the myth that this kind of “social” investment yields weak returns that take too long to realize.

 

A couple of interesting resources for newbies:

 

THEGIIN.ORG

 

 

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IMPACTALPHA.COM

Investment news for a sustainable edge

 

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