The Global Impact Investing Network and Cambridge Associates present the first comprehensive analysis of the financial performance of private real assets impact investment funds.
The report analyzes the financial performance of 55 real assets impact investing funds of vintage years 1997 – 2014, grouped into three sectors: timber, real estate, and infrastructure. The report also marks the launch of three benchmarks of impact investing funds in these sectors, which Cambridge Associates will update quarterly (more funds will likely be added to the benchmark over time).
Real assets can play several roles in institutional portfolios, providing diversification, current income, the potential for strong, long-term returns, and an inflation hedge. In addition to these benefits, real assets impact investment funds can also help achieve important impact objectives. For example, many timber-focused impact funds in this study pursue sustainable timber production or land conservation; many real estate-focused impact funds focus on green real estate and/or affordable housing, and most infrastructure-focused impact funds target renewable energy generation.
This report continues the GIIN’s efforts to build a robust evidence base of financial performance data in various asset classes, following a benchmark of private equity and venture capital impact investing funds launched in 2015.