- Impact investing is growing rapidly, with rising demand for strategies that go beyond traditional risk reduction approaches to produce direct benefits for people and the planet.
- Institutional investors are among the largest sources of impact capital as the market’s evolution has increased opportunities to earn market-rate returns in scalable investments.
- The diversity of opportunities in alternative investments across sectors and asset classes in developed and emerging markets provides a range of risk-return profiles to meet the needs of mainstream investors.
- Potential risks — including exposure to less mature businesses, illiquidity and the wide variation of returns noted in recent studies— place a premium on due diligence in manager selection.
- Investments in affordable housing, inclusive growth and resource efficiency demonstrate the potential for direct social and environmental impact with financial returns.