GIIN Launches Impact Investing Trends ReportSubmitted by Admin on Fri, 12/09/2016 - 14:31
A study released by the Global Impact Investing Network (GIIN) at the opening today of its two-day Investor Forum 2016 in Amsterdam found that impact investors reported substantial growth over the last three years. The Impact Investing Trends: Evidence of a Growing Industry report has found that among a consistent sample of dedicated impact investors, both overall assets under management and capital raised by fund managers increased substantially at a compound annual growth rate of 18 percent between 2013 and 2015. Additionally, the study found that up to 95 percent of impact investors surveyed report financial returns at or exceeding expectations and 98 percent met or exceeded impact expectations.
• Survey respondents demonstrated strong growth, collectively increasing their impact investing AUM from USD 25.4 billion in 2013 to USD 35.5 billion in 2015, a compound annual growth rate of 18 percent.
• The survey showed a steady flow of activity, with respondents committing a total of USD 7.1 billion to 3,332 deals in 2013, USD 9.2 billion to 3,726 deals in 2014, and USD 9.1 billion to 3,096 deals in 2015.
• The volume of capital raised by fund managers increased at a compounding rate of 18 percent each year, growing from USD 1.7 billion in 2013 to USD 2.3 billion in 2015.
• Financial performance was at or above expectations for 85 percent to 95 percent of respondents each year; impact performance was at or above expectations for 98 percent of respondents.
• Over 60 percent of AUM was in emerging markets and approximately 70 percent of AUM was allocated through private debt and private equity each year.
• The sectors accounting for the highest proportions of AUM were microfinance and other financial services, energy, housing, and food & agriculture.
Last October, Investisseurs & Partenaires (I&P) and the Foundation for International Development Study and Research (FERDI) publish a study on impact investment in Africa, entitled “Investing in Africa’s development: how impact investing can contribute to meeting the Sustainable Development Goals (SDGs) in Africa”.
The study presents the main characteristics of impact investors and the landscape of impact investment in Africa. 19% of total assets under management in 2015 has been disbursed in Sub-Saharan Africa (the second largest amount worldwide, behind North America), but a very limited number of countries and sectors benefitted from it. Over the last decade, a total of USD 7.3 billion of impact investment capital has been invested on the continent: 5.6 billion in the Southern Africa region, 1.4 billion in East Africa and only 221 million in West Africa.
About the GIIN
The Global Impact Investing Network (GIIN) is a nonprofit organization dedicated to increasing the scale and effectiveness of impact investing around the world. Impact investments are investments made into companies, organizations, and funds with the intention to generate social and environmental impact alongside a financial return. Impact investments can be made in both emerging and developed markets, and target a range of returns from below market to market rate, depending upon the circumstances. The GIIN builds critical infrastructure and supports activities, education, and research that help accelerate the development of a coherent impact investing industry.
For more information, please visit www.thegiin.org