Opening the Curtain on the New 2.0 Era of Impact Investing
Friday, November 8, 2013
Impact investing has not been growing as quickly as many practitioners might have hoped. Knowledge of what does and does not work in impact investing remains closely held. And because impact investing is unconventional (blending capital market tools, investor motivations, and professional disciplines from the private, public, and social sectors), the need to explain to outsiders precisely what is going on is more pressing still.
At the same time, this inherent complexity has not prevented the field from attracting tremendous interest. Make no mistake: investors are eager to proactively align their portfolios with their values. However, the key organizing principles in the “1.0 era” — anecdotes and observation, as opposed to evidence — are no longer enough. The larger wealth advisors and institutional investors on which growth depends are demanding a level of product and performance specificity that has so far been elusive.
- impact investing