Success in the first headline always makes for a good start to the week while the FT challenges (correctly imho) the concept of “Impact Investing” to be more than a buzzword. That SIB has a lot more tangibility than the less coherently conceived hipster credo of “II” is also something this parish must express and exploit… Have a great week.
Social Impact Bond Success
Francina J. Critzman – Miles & Stockbridge
Governments spend billions of dollars annually trying to address social problems. Most of these funds arenot spent on prevention of such problems, and when they are spent on prevention, it can be challenging to find evidence that the goals of the programs have been met. In order to address these issues the social impact bond model has been introduced.
Impact Investing Must Be More Than A Buzzword (subscription)
Stephen Foley – Financial Times
Can impact investing, which aims to provide a tangible social benefit as well as a financial return, move into the mainstream?
Large asset managers have placed bets this year that it will: US investment bank Goldman Sachs acquired Imprint Capital, a specialist consultancy; BlackRock, the world’s largest fund house, headhunted Deborah Winshel, head of the Robin Hood Foundation, an anti-poverty charity, to run an impact division; and Bain Capital, the private equity giant, has begun raising funds for impact investing.
A number of trends are coming together. A new generation of savers believe investment can be used for good or for ill, and would like it to be the former. Young entrepreneurs often have a social mission as well as a profit motive, and more companies are set up explicitly to pursue a “double bottom line”. Non-profits are experimenting with sustainable financing models that are opening up investment opportunities such as social impact bonds.