NextBillion - An Initiative of the William Davidson Institute at the University of Michigan

Thursday, September 25, 2014

The idea of investing both for profit and social good has come a long way in the last few years, but the sector still has enormous potential to grow.

The idea of deploying capital not only to generate a profit but to create some social return–“impact investing”–has come a long way in the last few years. From benefit corporations to social impact bonds, we now have plenty of variations on the theme, but perhaps not as much progress as first appears.

For example, a recent report from the Global Impact Investment Network and JP Morgansaid the world’s 125 leading impact investors will raise their commitments by 125% this year. And yet, there’s universal agreement in the sector, even among its biggest champions, that it’s nowhere near the force it could be.