A growing number of philanthropists and investors are allocating their capital into investments that generate positive social and environmental impact in addition to financial return. Whether investors are searching for a more efficient and sustainable way to pursue philanthropy or looking to simply diversify their investment portfolios through a new asset class, we see some interesting trends emerging from investment decisions of impact investors. It also clearly points out which investors are emerging as ‘Impact Leaders’ in the space. See for yourself if you have it in you to become an ‘Impact Leader’.
Lead – Be a pioneer in an exciting, innovative industry to drive positive, scalable change in the world. Allocate a small portion of your wealth for impact investing. Make an initial investment in the area you feel most passionate about. Start small, but get your feet wet. Impact Partners offers direct investment opportunities in Social Enterprises (minimum US$20k) or indirect opportunities in Funds (minimum US$100k).
Empathize – Start with your values, motivations and mission objectives. Identify the beneficiaries that you want to help, identify their greatest need and decide what impact you want to achieve, be it providing affordable education for rural children or providing off-grid electricity access through renewable energy. Impact Partners offers over US$100m impact investment opportunities across various sectors and countries in Asia Pacific.
Assess – Evaluate all investment opportunities thoroughly. Conduct due diligence on the business model, management team, growth strategy and use of funds. IIX assists you by sourcing and pre-screening all investment opportunities, structuring investments, managing transactions and introducing you to professional advisers such as lawyers, bankers, accountants etc.
Deepen – Build knowledge, expertise and experience. Shujog publishes relevant country and sector reports to help you understand the local environment and contextualize your investments.
Evaluate – Do not just settle for promises that positive impact will be created – understand, monitor and steer the impact performance of the opportunities you invest in. Insist on impact assessments and regular reporting to guard against mission-drift. Shujog applies a range of methodologies to help you measure and evaluate real social and environmental impact.
Risk/Reward – Calculate your risks and understand your rewards. While impact investments can offer attractive returns, exit opportunities can take time to emerge so be flexible with your requirements and patient with your capital. Increase your risk appetite and investment size as you learn, become comfortable and gain more experience. Join us in making a meaningful impact on people, planet, and profit.
En Lee is a Director at IIX and Head of Investor Relations.