GIIN in the news Press releases

  • Financial Engineers Find Ways to Bridge the Funding Gap

    via Financial Newsby Matthew Craig

    January 02, 2011

    Summary

    This article explores the interest among private investors to finance social and environmental businesses in times of government cutbacks, citing a report from J.P. Morgan and The Rockefeller Foundation.

    From original article:

    "Impact investing is related to social finance and JP Morgan's head of global research Nick O'Donohoe recently put out a report which called it an emerging asset class.

    "Like social finance, impact investing aims to have a social or environmental impact, but is normally directed at the developing world and those on incomes of less than $3,000 a year.

    "So far, this form of investing has been dominated by charities and philanthropists, but there is evidence it can produce good returns."

    Read original article

  • Private Equity Discovers Bottom of the Pyramid

    via The Financial Expressby Sarika Malhotra

    December 04, 2010

    Summary

    This article explores the convergence of social impact investment capital and mainstream venture capital financing the same companies whose customers are the Indian poor.

    From original article:

    "With a staggering increase in capital invested across social ventures-$404.58 million in 2010 as compared to $150.36 million in 2009-private equity/venture capital players are finding a fortune beyond the tip of the pyramid. And, in a turn of focus, interstitially more and more mainstream PE/VC funds are also venturing in this hitherto reserved space of social venture capital funds, making the investment play in the segment dynamic like never before.

    "Fathom this: If social VC funds such as Acumen Fund, Gray Matters Capital and Omidyar Network, in tune with their goals, are investing in a lighting and power company D.light Design, which delivers affordable and quality solutions to serve families living without adequate electricity, it's being matched up by investments made by mainstream players such as Draper Fisher Jurvetson India (DFJ), who are driven solely by commercial gains."

    Read original article

  • Have Your Cake and Eat it Too?

    via The Citizen at Harvard Kennedy Schoolby Atisha Kumar, Katharine Wolf

    December 01, 2010

    Summary

    The student newspaper of Harvard's Kennedy School of Government details growing interest in impact investing among students and graduates.

    From original article:

    "For a lot of Harvard students, balancing their goals of doing good and doing well poses a professional dilemma. Many graduates wrestle with the choice of working in the public or private sector. How can they conceivably do both? Impact investing might just be the way.

    "Broadly speaking, impact investing involves using traditional, profit-oriented investment that seeks to achieve a social and/or environmental impact. Examples include investments in microfinance, clean technology and global health. Caroline Hoffman, MBA '12, worked at IGNIA capital this past summer and described impact investing as an opportunity to bridge the gap between social goals and financial returns.

    "A fast-growing industry, impact investment is attracting diverse talent and capital. From the financial world, players such as venture capitalists, bankers and investors view this as an economic opportunity with attractive returns. Traditional non-profits are considering new revenue models and legal structures in order to attract capital and become more sustainable."

    Read original article

  • Investors Try New Tactic with African Agriculture

    via Reutersby Carey Gillam

    November 30, 2010

    Summary

    Investors and philanthropists are merging interests in the African agriculture sector, reports Reuters.

    From original article:

    "Africa as has long been a target for wealthy philanthropists who donate money in a fight against the continent's poverty, disease epidemics and food shortages.

    "Now, taking a cue from the nonprofit world, profit-hungry investors are eyeing Africa in a new way, putting a charitable spin on their pursuit of double-digit returns."

    Read original article

  • 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