Impact Investing

Do well and do good.

Entrepreneurs need financial capital to make their vision a reality. Some investors are willing to take prudent risks in exchange for the potential to make a large social impact. Philanthropic investors, institutions, government entities and individuals seek to leverage their grant investments. Together, social entrepreneurs and investors can help each other achieve a larger scale impact than working separately.

Long a leader in impact investing beginning with Prudential Social Investments, Susan is designing a social purpose fund for The Saint Paul Foundation. She has managed impact portfolios for diverse investors including the Ford Foundation, the City of St. Paul, and the Minneapolis Foundation.

Why make mission investments?

  • Recycle philanthropic dollars
  • Deploy larger capital amounts to make a real difference
  • Enable social ventures to grow and reach scale

Who?

  • Foundations seeking to increase impact by using new tools in addition to grants
  • Government entities looking to stretch scarce taxpayer funding
  • Banks, insurance companies and other financial institutions desiring prudent community investments
  • Angel investors aiming to achieve a double bottom line

 

Impact Investing Resources

Introduction

Short Guide to Impact Investing

The Short Guide to Impact Investing is a comprehensive yet accessible introduction to impact investing. It covers the what, why, where, and how of impact investing and includes several examples as well as a glossary of terms.

 

The Power of Impact Investing: Putting Markets to Work for Profit and Global Good

Rockefeller Foundation president Judith Rodin and Margot Brandenburg, two of the foremost experts in the field, explain what impact investing is, how it compares to philanthropy and traditional investments, where opportunities are evolving around the world, and how to get started. By sharing moving stories of impact investors and the exciting social enterprises benefiting from these investments, Rodin and Brandenburg offer a compelling resource for anyone interested in better understanding the power of impact investing—including retail investors, high-net-worth individuals, and heads of family offices, foundations, banks, and pension funds—while also offering experienced impact investors an opportunity to deepen their knowledge and benefit from the perspectives of other investors.

 

Investing Spectrum

Our graphic shows how impact investing fits within the spectrum of social impact and return.

 

Glossary

The Mission Investors Exchange has an extensive glossary of impact investing terms.  

 

Structural Racism, The Ecosystem, and Unaccredited Investors In Impact Investing

Susan Hammel joins Elaine Rasmussen, President & CEO of Social Impact Strategies Group to discuss structural racism in impact investing, how other communities can embark on mapping their own eco-system, as well as the untapped opportunities of corporate and unaccredited investors in the impact investing space.

 

Family Foundations

Guide to Impact Investing For Family Offices And High Net Worth Individuals

This guide combines Dr. Julia Balandina Jacquier’s 20 years of experience in investment management and input from over 40 wealthy families to create a set of guidelines for managing wealth for both profit and mission. The guide includes case studies, examples of successful funds, common mistakes, and concrete tools for implementing impact investing.

 

Overcoming Resistance of Family and Board Members

In this article, Dr. Julia Balandina Jacquier provides actionable advice for getting family members and trustees to buy into impact investing.

 

Essentials of Impact Investing for Small Staffed Foundations

In this guide, Mission Investors Exchange breaks down numerous impact investing case studies in order to provide actionable advice for small staffed foundations.

 

Investing In The Future: Mission-Related And Program-Related Investments For Private Foundations

This in depth article explains the distinction between Program Related Investments (PRI) and Mission Related Investments (MRI) in terms of requirements, taxes, and regulations.

 

Foundations Maximize Social Impact

Susan Hammel gives an impact investing 101 for foundations with the Southeastern Council of Foundations.

 

Case Studies

Introducing the Impact Investing Benchmark

“Cambridge Associates and the Global Impact Investing Network have collaborated to launch the Impact Investing Benchmark, the first comprehensive analysis of the financial performance of market rate private equity and venture capital impact investing funds. While the impact investing industry is in an early stage of development, it is poised for growth. One of the chief barriers to industry advancement remains a paucity of robust research on financial performance. Credible data on risk and return can help both existing and future impact investors better identify strategies that best suit their desired social, environmental, and financial criteria.”

 

Impact Investing 2.0

Impact Investing 2.0 provides a synthesis of 12 case studies of highly successful impact investing funds from across the globe. The authors use the 12 case studies to look for reoccurring themes and shared attributes that lead the funds success. The study provides a wealth of insight into the workings of the funds as well as practical advice for other funds.

 

Investor Tools

Fund Manager Training

The GIIN offers specialized impact investment training for fund managers through a variety of courses that help fund managers build applied skills to successfully attract, deploy, and manage capital. A key program feature includes practical coursework that builds on real market data, case studies, and feedback from leading LPs, GPs, and advisors. The sessions are designed and delivered by experienced practitioners and specialized experts through a flexible format that allows participants to select a training that best suits their professional schedules and obligations.

 

Impact Base

“ImpactBase is the searchable, online database of impact investment funds and products designed for investors. Published fund or product profiles on ImpactBase gain exposure to the global impact investing community.”

 

Maximpact Ecosystems

Maximpact Ecosystems offers services, advice, and a deal listing platform for investors, intermediaries, and seekers of capital.

 

Measuring Impact

IRIS

IRIS is a non profit organization that provides standardized metrics designed to measure the social, environmental and financial performance of an impact investment. IRIS’s services are a freely offered by the Global Impact Investing Network (GIIN) as part of its mission of increasing the scale and effectiveness of impact investing.