Required Reading: Report on Impact Investing by J.P. Morgan and The Rockefeller Foundation

Nov 29, 2010 12:40 PM ET

Mission Markets Blog

Impact Investments: An emerging asset class, is a new report put together by Social Finance at J.P. Morgan and The Rockefeller Foundation, in partnership with the Global Impact Investment Network. This report suggests that impact investing will establish itself as an important investment movement over the coming years.

The report estimates significant market opportunity for impact investment over the next ten years.  After analyzing selected segments of five sectors – urban affordable housing, rural access to clean water, maternal health, primary education, and microfinance – serving the population at the “base of the economic pyramid,” the report estimates a potential profit opportunity of between $183 and $667 billion and a potential investment opportunity between $400 billion and $1 trillion in the next decade for just these segments of the impact investing market.
  
The report also includes the first large-scale data analysis of return expectations, including comparisons to established benchmarks for emerging and developed market debt and equity returns.  The analysis shows that investors have broad expectations for impact investment financial returns, ranging from concessionary to market-beating. This report is aimed at advancing the understanding of impact investing as an appropriate and economically effective way to complement government and philanthropy in solving the world’s greatest problems at scale.

Mission Markets operates a private investment exchange facilitating transactions within the social and environmental capital markets. The Mission Markets platform provides companies and organizations with access to funding and impact investors an efficient way to evaluate, invest in and monitor sustainable investment opportunities.

MM10561