Viewpoint: The One Thing That Might Make Impact Investing Catch On
Institutional investors have long been skeptical that impact funds can deliver the returns they need to meet their investment objectives. But a group of asset managers is arguing that investing with a social purpose, such as climate change, adds financial value and diversification that mainstream funds can’t offer.
Even so, the group — which calls itself Impact Capital Managers and includes investment firms includes TPG, Bain Capital, Neuberger Berman, and others — is calling for more evidence to convince investors that they don’t have to trade high returns for so-called impact investing, or investing with social, environmental, and other objectives.
“Institutional investors tell us, ‘Show me evidence, don’t just tell me a story about the fund,’” said Maya Chorengel, a senior partner at TPG in its impact group and sector lead for financial services for its impact product, called the Rise Fund.