Top 50 impact investment funds: trend in microfinance investing
Thursday, Oct. 04, 2012
ImpactAssets 50, a public database of recommended private debt and equity impact investment fund managers, has released its 2012 version of the resource for both advisors and investors interested in ESG factors (environmental, social, and governmental). The "IA 50 2012" represents $10.2 billion of capital invested in a range of areas including community development, microfinance, and clean energy.
This year's list of recommended fund managers was selected by a committee chaired by Jed Emerson, Chief Strategist for ImpactAssets. The list is composed of diverse firms, according to a set of criteria that requires 3+ years in impact investing, private debt or equity investments, and a commitment to social/environmental impact demonstrated in both the portfolio and CSR policies.
Microfinance features prominently among the investment portfolios of the "IA 50", representing nearly 1/3 of the funds: Lok Capital, Grameen Foundation USA, Global Partnerships, Developing World Markets, Oikocredit USA, Calvert Foundation, MicroCredit Enterprises, BlueOrchard Finance, Alterfin CVBA, ACCION, Incofin Investment Management, LeapFrog Investments, MicroVest Capital Management, responsAbility Social Investments, Root Capital, Symbiotics, and Grassroots Capital Management.
Oikocredit USA's National Director Sharlene Brown commented on the MIV's selection on the impact investing list, "100% of Oikocredit's assets are invested in the social impact arena, combating poverty by increasing access to financial inclusion and spurring economic development in the world's poorest countries".
Global Partnerships also remarked through its Chief Investment Officer, Mark Coffey, "Inclusion in IA 50 for the second year in a row signals that we continue to move in the right direction in this nascent field of impact investing".
Root Capital believes that the IA 50 database will help promote impact investing through rigorous assessment and attracting large capital. The fund's founder and CEO, Willy Foote, said, “Impact Investing has the potential to become a powerful vehicle for efficient delivery of capital towards solving some of our planet’s most pressing social and environmental challenges".
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