State of the Market 2024: Trends, Performance and Allocations
September 30, 2024
As the impact investing industry’s field-builder, the GIIN conducts and publishes research throughout the year. These reports are a free and public good, providing the insights that investors need to navigate an ever-changing market.
Download the GIIN’s latest market intelligence, the State of the Market 2024: Trends, Performance and Allocations.
Highlights include:
- Steady growth in impact investing assets: At 14% CAGR over the past five years, there is continuous growth in the assets allocated to impact investing strategies. The dynamics between large and small investors are particularly intriguing, suggesting that investors are increasingly playing to their strengths — a sign of a maturing market.
- The rise of equity-like debt and public asset classes: Investors are leveraging the unique features of these asset classes to derive value, indicating a strategic shift in how capital is deployed.
- Satisfaction with financial performance despite unmet targets: Investors report high satisfaction with financial performance, even when targets are not met. This underscores the need to enhance data-sharing practices to better understand actual impact performance results. The GIIN’s impact performance benchmarks represent an important step in this direction, but there is much more work to be done.
- Key shifts in measurement and management of impact results: Investors are experiencing fragmentation in the choice of frameworks and metrics for measuring impact, a trend that is in keeping with past observations and, this year, is likely influenced by evolving regulatory environments. Despite this, over two-thirds of investors are incorporating impact criteria into their investment governance documents, signaling a significant shift towards formalizing impact considerations in decision-making processes. Additionally, there is a growing trend among investors to subject their impact management processes to third-party verification. These developments are crucial for enhancing investor accountability and indicate a move towards more sophisticated measurement and management practices in impact investing
This report is part of the GIIN’s 2024 Market Intelligence Series, based on the 2024 Impact Investor Survey. It captures reliable data from 305 organizations across 39 countries.
