IMPACT INVESTING These are investments made into organisations, companies and funds with the intention to generate a measurable, beneficial social or environmental impact along-with a sustainable financial return. These are typically “for-profit” businesses as against philanthropic and not-forprofit social enterprises. Their mission is to create a more inclusive environment with the haves and the have-nots of the world getting equal access to opportunities in all domains of life. Impact investments adopt the approach that deliberately builds intangible and tangible financial assets, (generally at market-rates) and wherein the economic value is not compromised in favour of social value. These social venture capital funds are equity or debt investments over $ US 1000 without an exit strategy vis ” a ” vis traditional businesses.
Impact Investments aka social venture capital can be done by socially and environmentally conscious individuals, large corporations, DFIs, and pension funds and can be directed to achieve certain missions. It has the potential to unlock and galvanize trillions of dollars of private capital to solve large scale complex social and economic problems of the world like K-12 education, child malnutrition, environmental preservation, social integration, the ageing population, healthcare, long-term unemployment and agriculture, to name a few. With so much at stake, there is a need for collaboration between all stakeholders in order to realise the full potential of the desired impact. 1