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

Friday, March 17, 2017

Impact investing is growing in importance among the alternative investing community, according to a new survey by the Chartered Alternative Investment Analyst (CAIA) Association.

Impact investing includes accentuating environmental, social and corporate governance initiatives through investments. Assets under management in impact investments have grown 18 percent year-over-year for the past three years, according to the Global Impact Investing Network (GIIN). Total industry assets under management in traditional private equity impact investments are estimated to be around $80 billion.

The fact that impact investments are making headway among the alternatives asset class should come as no surprise as these investors typically have broader investment parameters than traditional institutional managers, who must abide by more strict investment policies.