Impact Investing

In-Depth knowledge on Impact Investing

G W A L

Legal Affairs

The Council has six full-time attorneys with a breadth of experience on staff. This team of experts is a valuable resource to Council members, and is available to provide information on a wide range of topics that impact foundation operations.

This issue brief from the Global Impact Investing Network (GIIN) details the motivations, benefits, considerations and suitable scenarios behind the use of catalytic first-loss capital in impact investing transactions. Catalytic first-loss capital refers to socially- and environmentally-driven credit enhancement provided by an investor or grant-maker who agrees to bear first losses in an investment in order to catalyze the participation of co-investors that otherwise would not have entered the deal. Catalytic first-loss capital has gained recent prominence in impact investing dialogue as more investors look to enter the market.

The Impact Investor Project was established in 2012 as a two-year research partnership between InSight at Pacific Community Ventures, CASE at Duke University, and ImpactAssets. The goal was simple: supplant the guesswork and conjecture in impact investing with solid evidence of high performance and, in the process, expose the concrete practices of outstanding funds for use as the foundation for a more sophisticated and successful market.

In this report the World Economic Forum Investors Industries consulted the senior most decision-makers and portfolio managers of the largest and most innovative investors in the world; this facilitated a more realistic vantage point on the challenges in scaling the sector. Working with this group was also instrumental in raising awareness and knowledge among key stakeholders for taking impact investing from the margins into the mainstream.

In summer 2011, the Maine Community Foundation, New Hampshire Charitable Foundation and the Vermont Community Foundation came together, with the help of GPS Capital Partners and TPI, to jointly evaluate the potential for expanding impact investing as a program strategy and donor service. This case study looks at the role impact investing could play in those three community foundations and throughout northern New England.

The interactive Field Guide takes community foundations through three main stages of the impact investing journey: Learn, Design, and Activate. At each stage, visitors can click on various topics within that stage to learn more about what the topic entails and how other community foundations have approached place-based investing.

From Boston College Center for Corporate Citizenship, this handbook on responsible investing provides the blueprint for foundation asset managers interested in multiplying their organization’s impact on society through options that link mission with investments that create long-term value to society