Simply put, impact investing provides money to companies, organizations, funds, and even individuals. The purpose is two-fold: 1) classic investment ROI and 2) support socially responsible development.
At PHM International, we have been providing macro level information that helps support impact investing since 2007.*
Impact investments are made in companies and funds that increase the availability of goods and services. Like any type of investing, impact investments also require a return on investment, or ROI. However, while generating financial returns, impact investments also include “soft” returns such as increasing the number of new jobs, or a decrease in carbon emissions, and so on. In effect, this is the social and environmental impact of investing.
Impact investments occur among a wide variety of types and amounts. Private equity and venture capital are perhaps the most famous vehicles for impact investments. Yet “angel investors” can also be impact investors.
Today, business “accelerators” are starting all over the emerging markets and frontier economies. Like accelerators in the developed world, impact investment “accelerators” help start-up and growth stage social enterprises and companies. Impact Amplifier in Cape Town, South Africa and Open Capital Advisors of Nairobi, Kenya are a couple of examples of impact accelerators in emerging markets. Accion Venture Lab is but one example of an impact investment fund.
Large corporations and impact investment networks are also becoming active in impact investing. Companies are increasing their efforts to create shared values across their operations, suppliers, and customers. And impact investment networks bring together individuals with interests in socially responsible investments.
PHM International’s subscribers and readers are comprised of thought leaders from around the world and include:
Private equity firms
Institutional investment firms
International finance banks
Leading insurance companies
Healthcare IT and medical device manufacturers
Major international concerns and consultancies.
“Our subscribers and readers are the key investment and corporate decision makers who actively seek new opportunities in emerging markets,” said Hank Kearney, president of PHM International, Inc. “They are individuals and organizations who seek out information across the broad spectrum of this dynamic – the world’s emerging and frontier markets.”
Please take 5 minutes to watch this excellent video from Harambee Entrepreneur Alliance.
* PHM International does not provide investment advice.