As the field of impact investing continues to grow, investors are seeking innovative ways to channel their resources towards creating positive social and environmental change. Commingled impact investing funds have emerged as a powerful mechanism to pool capital from diverse sources and deploy it effectively for maximum impact.
Before getting into private debt 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.
Commingled impact investing funds, also known as pooled or blended funds, bring together capital from multiple investors, ranging from individuals and family offices to institutional investors and foundations. These funds consolidate resources into a single investment vehicle, which is then managed by a specialized fund manager or an investment team. Commingled funds often focus on a specific impact theme or sector, such as renewable energy, affordable housing, or sustainable agriculture.
The distinguishing feature of commingled funds is their ability to aggregate investments of varying sizes, allowing smaller investors to participate alongside larger institutions. This pooling of capital enables investors to benefit from economies of scale, diversification, and access to high-quality investment opportunities that may not be individually accessible.
By bringing together a diverse group of investors, commingled funds have the potential to deploy significant amounts of capital towards impactful projects and enterprises. This aggregated capital can support larger-scale initiatives that have the capacity to address complex social and environmental challenges effectively.
Commingled Funds have proven to be one of the most accessible forms of impact investing for institutional and retail investors. Below you will find some examples of impact investing funds listed on Impact Capital Partners.
Commingled impact investing funds play a pivotal role in harnessing the collective power of capital to drive positive change. By pooling resources, these funds enable investors to achieve larger-scale impact, access specialized expertise, mitigate risks, and promote transparency. As the demand for impactful investments continues to grow, commingled funds offer a compelling solution for investors seeking to align their financial goals with their social and environmental values.
Through the collective efforts of individuals, institutions, and fund managers, commingled impact investing has the potential to address pressing global challenges and create a more sustainable and equitable future. By embracing this collaborative approach, we can channel capital towards projects and enterprises that tackle systemic issues, empowering communities and driving meaningful progress towards a better world.
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.