Top impact investment funds

Top impact investment funds
Photo by Zbynek Burival / Unsplash

Top impact investment funds

Impact investing is an investment strategy that seeks to generate a measurable, positive social or environmental impact alongside financial returns. The impact may be on the environment, employees, local communities or among other things. The term "impact investing" was coined in 2005 by the Global Impact Investing Network (GIIN) but now for many years it has been growing in popularity amongst investors who see the potential for generating high returns from this type of investment. In this article you will know more about impact investment and top-5 impact investment funds in the world.

How do impact funds invest?

Impact funds invest in companies that have a positive social or environmental impact. This could mean anything from renewable energy to affordable housing—you can even find impact investment funds that focus on sustainable fisheries or water purification technologies.

Investors can choose from a range of investment styles, including venture capital, private equity, debt and infrastructure. All of these approaches involve making investments in businesses so that they grow more quickly than would otherwise be possible.

What are the benefits of investing in an impact fund?

You can use an impact fund to help you achieve your investment goals, such as growing wealth through investing in the stock market or purchasing real estate. Impact funds have become increasingly popular due to their ability to provide investors with higher returns than traditional investments.

Top-5 worlds' impact investment funds

TPG's Rise Fund (US)

TPG's Rise Fund is the largest impact investment fund in the world, with a total capitalization of $1 billion. The fund invests in emerging markets and focuses on sectors such as energy and infrastructure, financial services, consumer goods and real estate.

In 2018, TPG launched its Rise Fund to fuel positive social change across emerging markets through investments in companies that address pressing needs for health care, education and food security.

Generation Investment Management (UK)

It was founded in 2005 by David Blood, Al Gore and others who wanted to invest in companies that were helping to solve climate change. GIM’s impact investments are focused on clean energy, water and sustainable agriculture. The fund has $7 billion under management and invests alongside other investors through co-investments or direct investments into companies such as:

  • China Everbright Solar Power Co Ltd (China Everbright) which provides solar technology solutions for residential customers;
  • Suntory Water Inc., a Japanese company that makes water treatment systems;
  • Bluefield Technologies Inc., an American company that develops technology for recycling municipal solid waste into clean energy production facilities.

LeapFrog Investments (Asia and Africa)

LeapFrog Investments is a venture capital firm that invests in high-potential entrepreneurs and innovative businesses in emerging markets. It was founded by the Rockefeller Foundation and the Bill & Melinda Gates Foundation with investments from other organizations, including Development Bank of Singapore, Standard Chartered Private Equity, SIDBI Venture Capital Trust and International Finance Corporation (IFC).

Currently based in Singapore but with a global reach, LeapFrog has invested over $1.5 billion to date into more than 900 companies across Africa and Asia. The company focuses on sectors such as agriculture, financial services, healthcare for underserved populations and renewable energy.

Dalberg Capital (Africa)

Dalberg Capital is a private equity firm that invests in Africa and Asia. The company's portfolio includes companies like mobile payments firm M-KOPA Solar, which provides solar power to homes in Kenya, Uganda and Tanzania. Dalberg has also invested in other projects such as LuluPay, an e-commerce platform for small businesses.

In 2014, Dalberg partnered with the African Impact Investing Network to create a $100 million fund focused on impact investments for emerging markets like Africa and South America.

AXA's Initiative Coeur (France)

The fund invests in social and environmental impact companies in France. AXA's Initiative Coeur has invested in over 100 companies since its inception in 2013, which includes investments ranging from small-scale independent organic food producers to large-scale renewable energy producers.

Investing in impact funds can help you achieve your investment goals while having a positive impact on society. Impact funds are a relatively new category of investment but their popularity and growth rate is increasing rapidly. It is a great fit for many investors, who want to combine financial returns with social benefit.

For more information on investment funds (their investment criteria, funds sizes, region preferences and etc.) go to privateequitylist.com

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