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

Tuesday, February 26, 2019

ImpactAssets has released its ImpactAssets 50 2019 (IA 50), a publicly available, online database for impact investors, family offices, financial advisors and institutional investors that features a diversified listing of 50 private capital fund managers that deliver social and environmental impact as well as financial returns.  IA 50 users can sort and filter across a range of asset classes (debt, private equity and real assets), geographies, size of funds, themes and more.

“This year’s IA 50 highlights a diverse and tested group of fund managers that are delivering environmental and social impact as well as solid investment returns,” said Jed Emerson, ImpactAssets Senior Fellow, and IA 50 Review Committee Chair.  “Whether you are just starting your impact investing journey or are a veteran impact investor, the IA 50 is a trusted database to help investors identify experienced impact investment firms and explore the landscape of potential investment options.”

The IA 50 2019 saw a record number of private debt and equity fund manager applications. Managers who met the IA 50’s in-depth review criteria manage an estimated $28.5 billion in assets devoted to creating measurable, positive impact. This year’s showcase includes:

‘Unicorns’ and Emerging Funds: Six fund managers in the 2019 list have more than $1 billion in assets under management (AUM), while six have $10 million to $49 million in AUM. The number of fund managers in the $100-$500 million range saw the greatest growth, increasing nearly 30%, due in part to several new fund managers who made the IA 50 listing for the first time.

UN Sustainable Development Goals Categorization: New this year, the IA 50 database is aligned with the UNSDG framework, with the primary SDG listed for each fund manager.

Deep Experience: Fund managers in this year’s IA 50 have weathered multiple market cycles, with 66% of fund managers in operation for more than 10 years—a dramatic increase in manager tenure since the database was launched. In aggregate, IA 50 fund managers have more than 1,500 years of impact investing experience.

Diversity and Inclusion: Nearly 9 in 10 (86%) IA 50 fund managers report that 25% or more of their investment professionals are women and/or from under-represented groups, while half have teams with 50% or more women and other under-represented groups, a significantly higher percentage than investment industry averages.

Impact and Return: More than 75% of fund managers target market rate or above market rate returns, and 94% have delivered either in line or above their initial target returns.

“As impact investing continues its inexorable rise, it is critical to provide investors with a curated, objective evaluation of impact fund managers,” said Jennifer Kenning, CEO and Co-Founder of Align Impact, and IA 50 Senior Investment Advisor.  “The IA 50 is built to filter out the noise that is growing louder in impact investing and help investors focus on deep, meaningful impact.”

In addition to Emerson and Kenning, the IA 50 Review Committee is comprised of impact investment experts and leaders, including Karl “Charly” Kleissner, Co-Founder of Toniic and KL Felicitas Foundation; Kathy Leonard, Senior Vice President, Investments and Senior Portfolio Manager for UBS; Stephanie Cohn Rupp, Managing Director, and Partner, Tiedemann Wealth Management; Fran Seegull, Executive Director, U.S. Impact Investing Alliance, Ford Foundation; Liesel Pritzker Simmons and Ian Simmons, Co-Founders of Blue Haven Initiative and Matthew Weatherley-White, Co-Founder and Managing Director of The CAPROCK Group.

“ImpactAssets is focused on fostering deep impact investing with innovative investment solutions, resources and education,” said Margret Trilli, President and Chief Investment Officer at ImpactAssets. “The IA 50 is a cornerstone of our efforts to help investors gain access to the resources they need in order to help double the impact of their capital.”

The IA 50 is not an index or investable platform and does not constitute an offering or recommend specific products. It is not a replacement for due diligence. In order to be considered for the IA 50 2019, fund managers needed to have at least $10 million in assets under management, more than 3 years of experience as a firm with impact investing, documented social and/or environmental impact and be available for U.S. investment. Additional details on the selection process are here.

Photo courtesy of reynermedia.