Impact Investing
JOEY HORN INVESTING
Investing
IMPACT INVESTING Impact investing is the term for investments that are made to funds, organisations and companies in order to create measurable social or environmental benefits, as well as a traditional financial benefit to the investor.
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The people who make impact investments hope to address issues in society or the environment with their capital, and these investments can be made in both emerging and developed markets. Impact investors tend to seek out businesses, funds and nonprofits in the renewable energy sector, as well as in healthcare, education, housing, sustainable agriculture and microfinance; investments of this type can target below-market rates or above-market rates, depending on the specifics of the investment. Impact investments take place across a range of asset classes, such as fixed income, private equity/venture capital, and debt. Impact investing is not a total contemporary phenomenon, as philanthropy has always attempted to negate the negative social consequences of businesses and many individual investors throughout history have been aware of the impact of their investing decisions. Before modern-day impact investing, investors tended to express their values by avoiding making investments in businesses, sectors or companies that they believed had negative or detrimental effects on society.
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Impact investments take place across a range of asset classes, such as fixed income, private equity/ venture capital, and debt. 3
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