The GIIN’s report, GIIN Perspectives: Evidence on the Financial Performance of Impact Investments, 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.
Today, the sophistication of the financial markets far exceeds what could have been imagined only a few decades ago, offering products and services tailored for every investor’s needs. Yet, they may miss the real risks to investors’ well-being, which are systemic and long-term: climate change, financial instability, and inequality are significant investment risks, not just societal risks.
Impact investing has become a popular topic of discussion, not only with
the mainstream media but also with mainstream investors. Yet while impact
investing has entered the mainstream mindset, many investors with the
enthusiasm and means to engage meaningfully in impact investing lack the
informational resources to do so.
The Bottom Line: Investing for Impact on Economic Mobility in the U.S. recognizes the importance of learning from all sectors in tackling any challenge. Specifically, it builds on opportunities in the growing impact investment field. The report draws on the lessons from market-based approaches to identify tools and strategies that can help move the needle on family economic security.
A movement is afoot. It reaches across sectors and across geographies, linking small-business loans in Detroit with community development financing in Delhi. It has animated a generation of entrepreneurs and captured the imagination of world
leaders. It links the social consciousness of philanthropy with the market
principles of business. It’s about how the power of markets can help to scale
solutions to some of our most urgent problems.