Impact investing 21 Mar 2016
We were recently appointed the exclusive Non-Executive Director and Chairman recruitment partner with Big Society Capital to work with the funds in which they invest to appoint relevant Non-Executive Directors and Chairmen.
We are delighted! This is not only a great opportunity for us, but also a great source of opportunities for our non-executive network. It is also an indication of the growing importance of impact investing in the UK economy.
What is impact investing?
It is defined as: Investments made into companies, organisations and funds with the intention to generate social and environmental impact alongside a financial return.
Essentially providing capital to address a range of challenges from agriculture and clean technology to housing and education. What is very important here though is the commerciality of these investments – they are expected to make a financial return. This is not just money for good causes – it is money to be used to create and support businesses – building them for the long term.
By focusing on the need to provide a financial return, impact investing has attracted a wide variety of investors keen to get into this market. For example:
- Banks, pension funds, financial advisers and wealth managers can provide client investment opportunities to both individuals and institutions with an interest in general or specific social and/or environmental causes.
- Institutional and family foundations can leverage significantly greater assets to advance their core social and/or environmental goals while maintaining or growing their overall endowment.
- Government investor and multilateral development finance institutions can provide proof of financial viability for private sector investors while targeting specific social and environmental goals.
The UK has led the way in social impact investing and as socio economic and environmental demands increase, there is a high probability that it becomes mainstream within a short period of time.