3 Things You Must Know About Impact Investing

Impact Investing

Impact investing is a form of socially responsible investing. Of course, in this type of investing, positive outcomes are the key indicators. The core goal of impact investing is to invest in companies, funds, or projects that can bring a positive social change and benefit society or the environment. Simultaneously, it generates an excellent financial return.

What is the current value of impact investing?

Global Impact Investors Network (GIIN) reported that the impact investing market reached $715 billion, including more than 1,720 organizations.

Here we give the list of 3 well-known impact investing funds.

Calvert Impact Capital

Calvert Impact Capital is located in the USA and was founded in 1988. The company’s target impact areas are community development and affordable housing. Thus, Calvert Impact Capital is a nonprofit investment firm that provides capital to underserved communities around the world. The firm makes loans to about 100 organizations worldwide that focus on bringing positive social and environmental change. Particularly, they lend to climate, microfinance, affordable housing, education, gender equity projects, organizations, and companies. It currently focuses on sharing impact investing insights in three main areas: landscape, gender equity, and sector approach. During its 25 years of operations, the firm has invested more than $2 billion in such underserved communities. 

Bridges Fund Management

The company is in London and it was founded in 2002. Bridges Fund Management is an impact investing that specializes in sustainable and impact investment. The fund invests mainly within four impact themes: healthcare, education, sustainable living, and underserved markets. Especially, they try to create new jobs in underserved places, provide better health or education, find wiser ways to reduce harmful emissions. The fund raised $1 billion since its foundation in 2004. The company headquarters is in London, and it has offices in New York and San Francisco.

Adobe Capital

The company targets to see changes in social and environmental challenges. The company is located in Mexico City and was founded in 2000. Certainly, Adobe Capital is one of the first impact investing funds in Latin America that focuses on growing small and medium-sized social and environmental enterprises (“SMEs”) in Mexico. This fund invests in Mexican companies with growth potential but currently have fewer than 50 employees, less than $5 million in sales. Adobe Capital believes that SMEs have an important role in emerging markets by creating opportunities for employees and empowering local communities. 

To read more about Islamic Finance related topics, please click here and visit our academy.

Feel free to sign up for our free stock screening services at Musaffa.com