Public debt impact investments are becoming increasingly popular for investors looking to generate financial returns while creating positive social and environmental impact. This type of investing is typically done through public debt securities, such as green bonds and affordable housing bonds. In this article, we will provide an overview of public debt impact investments and share a few examples of similar investments on Impact Capital Partners.
Public debt investments refer to the purchase of government debt securities, such as Treasury bills, notes, and bonds. These investments provide a secure and reliable way to support the government’s fiscal needs and also benefit investors by providing a safe, predictable return over the long-term. Public debt investments are attractive to investors because they are backed by the full faith and credit of the U.S. government, meaning they are unlikely to default.
Public debt impact investments are investments in debt instruments issued by public entities, such as government agencies, municipalities, and international development banks, with the goal of generating positive social and environmental outcomes while providing a financial return.
Public debt securities can be used to fund projects that promote healthcare access, environmental sustainability, improved education, and other initiatives that benefit society. By investing in public debt instruments, investors can support the public sector while also earning a return on their capital. Some common examples include:
Green bonds: Bonds that are specifically earmarked for projects that have a positive environmental impact. These bonds typically finance projects related to renewable energy, energy efficiency, green buildings, and other initiatives that help to reduce carbon emissions and promote sustainability.
Municipal and community infrastructure bonds: Bonds that are designed to finance the development of infrastructure in local communities. These bonds typically finance projects related to transportation, water and sewer systems, schools, and other initiatives that help to improve the lives of local residents. By investing in municipal and community infrastructure bonds, investors can help to support their local communities while also generating a stable return.
Affordable housing bonds: Bonds that are designed to finance the development of affordable housing projects. These bonds typically finance projects such as new construction, rehabilitation of existing housing, and rental assistance programs. By investing in affordable housing bonds, investors can help to provide more affordable housing options for people who may otherwise be unable to purchase or rent a home.
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 public debt impact investments listed on Impact Capital Partners.
In conclusion, public debt impact investments have the potential to generate a financial return for investors while also making a positive impact on society. By investing in public debt instruments, investors can support initiatives that benefit society, such as healthcare access, environmental sustainability, and improved education.
If you’d like to learn more about private equity impact investments, please feel free to schedule a call with one of our partners here.
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.
6 Impact Capital Partners is dependent upon its Fund Mangers and FBDs to select investments and conduct operations.
7 Total facility amounts represent the proposed amounts that would be available to the borrower under an agreement. This amount may change over time.
8 Interest rates include contractual rates and accrued fees where applicable and are gross of fund fees and expenses. This metric is not a measure of investment performance nor is it necessarily indicative of distributions that the Fund Manager may provide to investors.
9 All industry updates are provided to Impact Capital Partner by their Fund Managers and FBDs.