GIIN in the news Press releases

  • Impact Investment 'A Burgeoning Asset Class'

    via Financial Timesby Nicholas Timmins

    November 28, 2010

    Summary

    This article from the Financial Times gives a broad synopsis of the research report entitled

    Impact Investments: An Emerging Asset Class

    by J.P. Morgan Global Research and The Rockefeller Foundation.

    From original article:

    "'Impact investment' - an embryonic market in which investors aim to achieve positive social or environmental gains - is beginning to emerge as a separate asset class and should be treated as such, says a report from JPMorgan and the Rockefeller Foundation.

    "The study claims to be the most comprehensive look to date at the way philanthropic foundations, private individuals and more traditional investors are seeking to do good with their investments rather than merely ensure a financial return.

    "Nick O'Donohoe, global head of research for JPMorgan investment bank, said that over the next decade, the impact investment market could grow to be worth between $400bn and $1,000bn in sectors such as clean water, maternal health, primary education, microfinance and affordable housing.

    "The study foresees a potential to generate profits of between $180bn and $600bn or more.

    "Impact investment is aimed at those 'at the bottom of the pyramid' who earn less than $3,000 a year, and where the aim is to have a positive social impact, not just produce returns - although the study demonstrates that real returns are being made."

    Read original article

  • India Microcredit Faces Collapse From Defaults

    via New York Timesby Lydia Polgreen, Vikas Bajaj

    November 16, 2010

  • Impact Investor

    via Fast Companyby Lisa Katayama

    November 11, 2010

    Summary

    Fast Company profiles Ron Cordes, co-chairman of GenWorth, who has embraced impact investing. With nearly 30 years experience in the financial services industry, Cordes plans to use his expertise to create products that will facilitate impact investing, including a "Global Impact 50 Index" of funds that produce social and environmental benefits alongside financial return, and ImpactAssets which is a technology platform to connect investors with investment opportunities.

    "'We intend to build an array of products to cover multiple issue areas and geographies across a broad spectrum of asset classes, including both debt and equity,' Cordes says. ImpactAssets is slated to launch in the first quarter of 2011. 'I've never been so excited about getting up in the morning. Philanthropy alone won't solve the world's biggest problems; I see a higher social purpose and a real opportunity to move the ball forward and make a difference.'"

    Read original article

  • Micromortgage

    via Economic Timesby Nishant Lalwani

    November 09, 2010

    Summary

    The Economic Times explores the growing micromortgage finance industry in India.

    From original article:

    A study for the National Housing Bank has found that there are over 40 housing developers across seven states in India offering apartments in the '3-10 lakh range, the cheapest of which are affordable to households earning as little as '7,500 per month. This market has huge potential for both social and commercial impact, but many low-income customers are being prevented from buying houses due to the lack of housing finance available for the poor. Enter the "micromortgage" companies.

    For additional background on the affordable housing market and micromortgages in India, reference the Building Houses: Financing Homes report from Monitor Inclusive Markets.

    Read original article

  • Agriculture, farmland attracting "impact investors"

    via Reutersby Carey Gillam

    November 07, 2010

    Summary

    Reuter's Carey Gillam takes note of the growing interest among impact investors in sustainable agriculture investment opportunities, particularly in Africa.

    From original article:

    "Investors eyeing agriculture in Africa, Latin America and other global markets are increasingly merging their pursuit of profits with a philanthropic zeal that promoters say will pay benefits over the long term.

    "So-called 'impact investing' is catching on with a range of private equity groups, financial services firms, venture capital funds and other moneyed players."

    Read original article

  • Spotlight on Impact Investing

    via The Stern Opportunityby Suma Narasimharajan

    November 01, 2010

  • Advisers seen as Key to success of 'Impact Investing'

    via Investment Newsby Deborah Nason

    October 30, 2010

    Summary

    Deborah Nason of Investment News details the emergence of infrastructure and market platforms for impact investing. GIIN Director of Strategy and Development Amit Bouri discusses the role of the GIIN in this growing industry.

    From original article:

    "...market immaturity is what the Global Impact Investing Network has set out to address.

    "Launched last year, the network - encompassing large-scale financial services institutions, family offices, retail and investment banks, family foundations, retirement fund managers, institutional foundations and specialized impact investing funds - has a mandate to 'address systemic barriers in the development of this industry,' said Amit Bouri, director of strategy and development.

    "The organization is building infrastructure for the industry by convening educational forums, developing accounting standards based on generally accepted accounting principles, coming up with definitions to apply to the various social and environmental investment vehicles, compiling an impact investment funds database and providing outreach such as media relations."

    Read original article

  • Filling the Gap Between Farm and Fair Trade

    via New York Timesby David Bornstein

    October 24, 2010

    Summary

    GIIN Investors' Council founding member Root Capital is profiled in this article on the New York Times Opinionator blog, which looks at solutions to social problems and why they work. Root Capital provides loans to agricultural cooperatives in developing countries. The products - including vanilla, coffee, nuts, and cocoa - are often sold with the familiar "fair trade" labeling in US and European stores.

    From original story:

    "We've all seen the ads for fair trade coffee with the beautiful photos of villagers hand picking coffee cherries in exotic regions around the globe. Fair trade is one of those ideas that's always in the air, but we don't often consider what it means. What does it really take to connect rural producers in the developing world with consumers in wealthy countries - so that everybody benefits?

    "...What [Root Capital Founder Willy Foote] found was that the missing link between small producers in the developing world and middle-class consumers who like to buy their morning coffee at Starbucks is a special kind of banker. That's why, in 1999, Foote founded Root Capital, a not-for-profit organization that helps environmentally sustainable grassroots businesses gain access to capital, skills and markets...

    "... Root Capital has lent $235 million to 305 rural businesses in 35 countries, with a 99 percent repayment rate, and it is poised to triple its annual lending by 2013. The businesses that Root Capital has financed - producers of such things as coffee, cocoa, nuts, cotton, fruit, timber and artisan goods - support 400,000 households, or well over a million people."

    Read original article

  • Creating a New Asset Class for Social Entrepreneurs

    via Inc.by Suzi Sosa

    October 11, 2010

    Summary

    Inc. offers a detailed recap of SOCAP10, the largest impact investing industry conference to date.

    From original article:

    "The big question at this year's Social Capital Markets conference was this: How can we unlock more investment capital for social entrepreneurs? Kevin Jones and the folks at Good Capital, the founders and conveners of "SoCap" (as it is known among its followers), believe that the pressing need in the field is to make large volumes of capital available to world-changing entrepreneurs.

    "With the explicit intention of tapping into and mobilizing mainstream capital markets, the buzz among the SoCap crowd this year was all about "creating a new asset class" for social entrepreneurs. This terminology is important because it reflects the intention of the conference participants to move away from niche "socially-minded" investors and instead to tap into the trillion-dollar pot of traditional investment capital."

    Read original article

  • 'Impact Investing' Teeters on Edge of Explosive Growth

    via New York Timesby Jonathan Weber

    October 08, 2010

    Summary

    On the heels of SOCAP10, this article notes a growing push to view impact investing as an emerging asset class.

    From original article:

    "The idea that it's possible to marry hard-nosed capitalism and bleeding-heart causes has been around awhile, with philanthropic institutions working hard to be more business-like even as many businesses pay more attention to the social and environmental impact of their operations.

    "But the notion that for-profit companies with a social mission at their core could constitute an "asset class" is fairly new. And though there are myriad challenges in making it real, there is genuine progress."

    Read original article

  • Sun Co-Founder Uses Capitalism to Help Poor

    via New York Timesby Vikas Bajaj

    October 04, 2010

    Summary

    In its profile of Sun Microsystem co-founder Vinod Khosla, the New York Times notes an increased interest among technology entrepreneurs to fund social and environmental impact through investment.

    From original article:

    "An Indian transplant to Silicon Valley, Mr. Khosla plans to start a venture capital fund to invest in companies that focus on the poor in India, Africa and elsewhere by providing services like health, energy and education.

    "By backing businesses that provide education loans or distribute solar panels in villages, he says, he wants to show that commercial entities can better help people in poverty than most nonprofit charitable organizations."

    Read original article

  • CGI

    via Fast Companyby Alice Korngold

    September 28, 2010

    Summary

    Fast Company profiles GIIN Investors' Council member Omidyar Network for its unique funding model which uses both impact investing and philanthropy to achieve social goals.

    From original article:

    "Old school charity and 'philanthropy' once referred exclusively to financial contributions to nonprofits. Today, Omidyar Network (ON) takes a more innovative and inclusive approach, called 'flexible capital.' As a philanthropic investor, ON invests in for-profits, as well as nonprofits.

    "Here's the deal. Whether they are for-profits or nonprofits, ON's beneficiaries are chosen because they seek to achieve the ultimate outcome that ON strives for: 'individual participation that can catalyze economic, social, and political advancement on a global scale.' Omidyar Network was established in 2004 by eBay founder Pierre Omidyar and his wife Pam. To date, ON has committed more than $363 million to enterprises in microfinance, property rights, consumer Internet, and mobile and government transparency."

    Read original article