GIIN in the news Press releases

  • New Orleans' Mardi Gras for Entrepreneurs

    via Daily Beastby Catherine Lyons

    March 24, 2011

    Summary

    GIIN Investors' Council member Calvert Foundation is joining other venture capitalists at the third annual New Orleans Entrepreneur Week, where social businesses present their ideas to impact investors.

    From original article:

    "Venture capitalists from the around the country are recognizing the opportunity New Orleans offers to entrepreneurs with crazy ideas. Daryn Dodson came down to New Orleans right after Katrina with a team of fellow MBA students from Stanford University. Three years later, he has returned to [New Orleans Entrepreneur Week] NOEW with Calvert Funds as a potential investor in some of New Orleans' companies.

    "'The venture-capital community flies between the East Coast and West Coast and hasn't recognized the emerging market economy of New Orleans' resurgence,' says Dodson, venture consultant to the board at Calvert. 'I work in impact investing, which is finding entrepreneurs that are impacting society with substantial return. If you're looking for a perfect place to do that, New Orleans is it.'"

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  • Can Impact Investing Make a Difference?

    via Investment Weekby Alex Weiland

    March 17, 2011

    Summary

    Investment Week profiles the emerging impact investing asset class in this piece by Alex Weiland, Chief Investment Officer of Truestone Impact Investment Management.

    From original article:

    "This new asset class is designed to generate market rate returns while investing in sub-sectors such as agriculture, sustainable forestry, renewable energy, housing, education, health, SME finance and micro-finance, mainly in the underdeveloped world but also in deprived developed communities.Pie in the sky?

    "Some skeptics might deem this to be pie in the sky but a recent report from J.P. Morgan predicts that impact investing could attract up to $1trn (GBP 620bn) over the next decade. The same report suggests that potential profits could be as high as GBP 667bn (GBP 422bn)."

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  • Toby Eccles

    via The Independentby Sarah Arnott

    March 16, 2011

    Summary

    The Independent profiles GIIN board member Toby Eccles for his work developing a social impact bond which will finance prison recidivism prevention programs in the United Kingdom.

    From original article:

    "Imagine a world where the might of private capital could be harnessed to address society's most intractable problems. It sounds obvious, but social issues are so complex they make it mind-bogglingly difficult to do. But Toby Eccles is convinced he can crack the problem.

    "The former UBS Warburg corporate financier has already launched the world's first ever Social Impact Bond. And that single pilot scheme could become a thriving, mainstream market funding everything from drug rehabilitation schemes to keeping children out of state care within as little as 10 years, he says."

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  • Want to Make a Difference? Invest Responsibly

    via Huffington Postby Amy Domini

    March 13, 2011

    Summary

    Huffington Post guest columnist Amy Domini, founder and CEO of Domini Social Investments and author of Socially Responsible Investing, takes note of the increased use of "high-impact investing" as a term to describe investments into highly impactful companies. Domini recognizes that the activities of today's impact investors build upon the work of the socially responsible investing movement.

    From original article:

    "What makes a manager a specialist in socially responsible investing? It's three things. One, they select investments by applying standards that include impacts on people and the planet. Two, they are activist owners and engage in issues either directly through filing shareholder resolutions or less directly through policy work. Three, they add investments into highly impactful entities such as community development loan funds for farmers, micro-credit funds and start-ups in positive change fields."

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  • Betting on Green

    via The Economist

    March 09, 2011

    Summary

    Sun Microsystems co-founder Vinod Khosla is making aggressive impact investments in energy alternatives. This piece in the Economist profiles Khosla's approach and philosophy about impact investing in environmental solutions to climate change.

    From original article:

    "Mr. Khosla has a different plan to save the planet. He is investing over $1 billion of his clients' money in "black swans" - ideas with the potential for sudden jumps in technology that promise huge environmental benefits, easy scalability and rapid payback. The catch? Mr. Khosla expects nine out of ten of his investments to fail.

    ***

    "Although Khosla Ventures' two funds are fully subscribed, and have invested about $1.3 billion in over 40 companies, billions more dollars and many more start-ups will be needed to hatch a flock of black swans. Mr. Khosla estimates that the amount of investment required to replace all the petrol consumed in America with renewable fuels will run into the hundreds of billions of dollars. But other high-tech venture capitalists seem to be steering clear of risky green investments."

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  • Microfinance and Impact Investment

    via Business Dailyby Bbc

    March 07, 2011

    Summary

    The BBC's Lesley Curwen speaks with Harold Rosen, founder of the Grassroots Business Fund, which lends to small and growing businesses in the developing world as a means to create positive social and environmental impact while returning a profit to investors. Building upon the models pioneered in microfinance, Harold Rosen discusses his model of impact investing in this interview.

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  • First Social Stock Exchange in Asia to be Set Up by Early Next Year

    via Malaysia Star

    March 07, 2011

    Summary

    The Asian impact investing exchange is scheduled to launch in early 2012, according to this article in the Malaysian Star.

    From original article:

    "Asia's first social stock exchange - Impact Investment Exchange Asia (IIX), which is a social enterprise (SE), is expected to be set up and operational by early next year.

    "While details of the IIX have yet to be ironed out, the organization behind IIX, Impact Partners will be launching an online portal by the end of the month to bring together investors with socially impactful investments.

    "According to IIX managing director Robert Kraybill, impact investing may be new in Asia but is was fast gaining traction in the United States and Europe.

    "IIX directors believe there is much potential for impact investments in Asia as social issues such as poverty, deprivation and environment become more relevant."

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  • Lessons for the New Philanthropy from the Experiences of the Past

    via LiveMintby Ganesan Balachander

    March 05, 2011

    Summary

    Banker and Ecologist Ganesan Balachander discusses the role the philanthropy has played in the development of Indian economic markets, acknowledging the rise of impact investing in recent years.

    From original article:

    "Finally, with the growing role of the market and a paradigm shift in the offing from a welfarist social policy to a more market-based one, there is also scope for socially responsible investing. This has been termed as impact investing, described as the emerging hybrid of philanthropy and private equity. If India can get its act together, there is no reason why we cannot have a shining India in our lifetime."

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  • Search for New Assets Finds a Positive Impact

    via Financial Timesby Norma Cohen

    March 03, 2011

    Summary

    Interest in impact investing is growing among high-net-worth individuals, particularly those who generated assets through entrepreneurship, according to this article in the Financial times.

    From original article:

    "In a report last year, JP Morgan concluded that businesses aiming to deliver just five socially desirable goals - housing, rural water delivery, maternal health, primary education and financial services - for people earning under $3,000 annually, has the potential to attract anywhere from $400m to $1,000bn over the next 10 years. More than that, it offers potential profits of $183bn to $667bn.

    "Andrew Haigh, managing partner at Coutts' Entrepreneurs Client Group, said that a number of its clients wanted to invest in precisely such channels. Many, he said, were entrepreneurs who may have recently become wealthy through the sale of a business and found themselves looking for places to invest not just cash but ideas and energy, as well. 'Early-stage investment is already on their radar screens,' Haigh says. 'Often, there is also a desire to give something back.'"

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  • Where Will All The People Live?

    via Financial Advisor Greenby Ellie Winninghoff

    February 28, 2011

    Summary

    Enterprise Community Loan Fund has invested capital into affordable housing for low-income Americans for decades, and more recently, the fund has worked with green builders on their projects, according to this article in Financial Advisor Green. The product is available now to both individual and institutional investors.

    From original article:

    "Are you looking to invest with a social enterprise that has an extraordinary track record for tackling complex problems with creativity, not gimmicks?

    "Enterprise Community Loan Fund (assets: $176 million), one of the largest loan funds in the country, has started offering 'community impact notes' to individuals and institutional investors that help finance green and affordable housing, as well as the revitalization of communities, which its founder once visualized as 'gardens that grow people and civilizations.'"

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  • The New Candy

    via Financial Advisor Greenby Ellie Winninghoff

    February 28, 2011

    Summary

    Financial Advisor, a trade publication for wealth advisors, details the growing interest in impact investing and the products available in the market now.

    From original article:

    "Imagine investing in - not donating to - nonprofits that make small business loans in Appalachia, develop affordable housing in New Orleans, support fair trade initiatives for chocolate and coffee growers, or maybe extend credit to micro-entrepreneurs or small businesses that sell clean energy or deliver access to water in the developing world.

    "Or perhaps your clients prefer to invest in a for-profit loan fund that supports organic farms, or a private equity fund that preserves ranchland or develops sustainable forests. Or a venture capital fund focused on climate change solutions.

    "Welcome to the world of 'impact investing,' a way to invest to solve the world's social and environmental problems while earning a financial return - as little as a return of capital to as much as well-above-market rate.

    "These investments, which range from CDs in community banks to private placements limited to accredited investors, can also include various tranches in massive development projects involving partnerships between governments, foundations, banks and pension funds."

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  • Transparency Needed

    via Financial Advisor Greenby Thomas Kostigan

    February 27, 2011

    Summary

    This blog post in Financial Advisor Green makes the case for transparency and consistency in social and environmental performance reporting, noting the work of the GIIN to create the Impact Reporting and Investment Standards (IRIS).

    From original article:

    "Impact investing needs indexes, benchmarks and uniform reporting in order for investors to make intelligent investment decisions. Otherwise, it's investing in a vacuum - and that won't do the world as much good over the long term.

    "It's happening.

    "The Global impact Investing Network has developed Impact Reporting and Investment Standards (IRIS). This is a common framework for measuring social and environmental impact of investments."

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