As the world grapples with pressing social and environmental challenges, a growing number of investors are seeking avenues that align their financial objectives with positive societal impact. Impact investing has emerged as a powerful tool to address such issues, combining financial returns with purposeful investments. However, a new dimension has been added to this approach through co-investments.
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.
Co-investments involve pooling resources from multiple investors to collectively finance a project or enterprise. By partnering with like-minded investors, impact investors can mobilize larger amounts of capital to support initiatives with a greater scale and scope. Co-investments expand the potential for impact by providing a broader financial base, which can make a significant difference in addressing complex challenges.
Collaborating with other investors through co-investments allows for the exchange of knowledge, expertise, and best practices. This shared wisdom not only enhances due diligence and risk management but also provides access to a diverse network of stakeholders, including industry experts, entrepreneurs, and policymakers. Leveraging these collective resources fosters innovation and strengthens the overall impact of investments.
Co-Investments are becoming a popular vehicle used to structure socially and environmentally impactful projects and companies. Below you will find some examples of co-investing opportunities listed on Impact Capital Partners.
As impact investing gains traction as a powerful force for positive change, co-investments offer a compelling strategy to amplify impact and financial returns. By joining forces with like-minded investors, individuals and organizations can pool resources, share expertise, and mitigate risks, unlocking greater potential for addressing the world’s most pressing challenges. The collaborative nature of co-investments not only strengthens impact initiatives but also fosters a vibrant ecosystem where innovation and sustainability thrive. As we navigate a future defined by social and environmental responsibility, impact investing with co-investments represents a crucial pathway towards a more inclusive and sustainable global economy.
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.