Study Calls on Impact Investors to Close Educational Attainment Gaps

Monday, June 5, 2017

Innovative impact investments are needed to address gaps in higher education attainment for low-income students, a report commissioned by the Kresge and Lumina foundations argues.

Prepared by Avivar Capital, the report, Driving Postsecondary Success With Impact Investing (executive summary, 10 pages, PDF), found that while the increase in jobs that require postsecondary education, rising educational costs, changing student demographics, and advances in technology are helping to drive educational innovation, there remain gaps in the availability of capital needed to fund such efforts. According to a recent Global Impact Investing Network survey, impact investments in the education sector accounted for only 2 percent of global impact investing assets under management. The report further suggests that foundations can play a catalytic role in ensuring the flow of capital to educational organizations and for interventions designed to boost equitable access to higher education for underserved populations through the provision of “blended capital” (a combination of grants, “patient” or more affordable equity, and/or debt capital).

Source: Philanthropy News Digest (link opens in a new window)

Education, Investing
Base of the Pyramid, impact investing, poverty alleviation