Impact litigation is the practice of bringing lawsuits to effect societal change. This form of litigation has become increasingly popular amongst impact investors looking to generate financial returns while creating positive social and environmental impact. This is typically done by investing in impact litigation funds that seek out bad actors and return some portion of restitution to investors. In this article, we will provide an overview of impact investing with impact litigation, and share a few examples of similar investment strategies on Impact Capital Partners.
Before getting into private equity impact investments, let’s start with a brief introduction on impact investing.
Impact Investments are investments made in social enterprises or investment funds that seek to generate positive social and/or environmental impact alongside a financial return. As opposed to SRI and ESG investing, which rely on exclusionary practices to screen out harmful investments, impact investing aims to bridge the altruistic principles of philanthropy with traditional investing. You can learn more about the differences between these types of investing in our article SRI vs. ESG vs. Impact Investing.
Depending on the strategic goals of the investor, impact investments can be made in frontier, emerging or developed markets, and can target a range of financial returns from commercial (“market”) returns to concessional (“below-market”) returns. Impact investments can also be made through various asset classes, and can focus on varying impact themes.
According to the Global Impact Investing Network’s October 2022 report, the impact investing market currently exceeds $1.16 trillion in assets under management. In April 2019, GIIN estimated the market size at $502 billion and by 2020 that estimate had grown to $715 billion.
Impact litigation is a type of legal action used to bring about social change. It is a process of filing a lawsuit to challenge a policy or law when a group of people or individuals are adversely affected. The goal is to bring about a ruling that will set a legal precedent and bring change to a larger population.
Impact investing and impact litigation can work together to create a powerful combination of capital and legal action to create systemic change. Impact investors can use their financial resources to provide funding for public interest attorneys and organizations to bring about important legal actions that can advance social justice and environmental goals. However, since impact investors seek a financial return on their investment, these strategies typically involve some form of distribution of restitution to investors.
We are constantly looking for institutional-grade impact investing opportunities across various sectors, geographies, asset classes and impact themes. Below you will find some examples of impact litigation strategies listed on Impact Capital Partners.
At Impact Capital Partners, our mission is to connect institutional capital with the growing impact investment market to address the world’s most pressing challenges. By utilizing impact investments, institutional investors are able to generate positive, measurable social and environmental impact alongside a financial return. We are constantly finding new impact investment opportunities in both emerging and developed markets, targeting market-rate returns. Schedule a call with us HERE if you’re interested in learning more about our impact investing strategies.
1 Prospective investments that are sourced through a Foreign entity or Broker-Dealer (“FBD”) are offered to U.S. Institutional Investors through an engagement with Pinnacle Capital Securities, LLC (“Pinnacle”), member FINRA / SIPC, who is authorized to chaperone the FBDs under SEC Rule 15a-6.
2 All listed investment opportunities are intended for INSTITUTIONAL INVESTORS ONLY.
3 All listed investment opportunities may or may not be profitable. They are speculative investments and, as such, involve a high degree of risk. Nothing contained above shall constitute a recommendation or endorsement to buy or sell any security or other financial instrument.
4 For Funded Opportunities, there is no guarantee that future investments will be similar.
5 Investment in a non-listed LLC involves significant risks including but not limited to: ownership is restricted; no secondary market; limitation on liquidity, transfer and redemption of ownership interest; distributions made may not come from income and, if so, will reduce the returns, are not guaranteed and are subject to management discretion.
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