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.
Whether called impact investing, mission investing, program-related investing, or sustainable and responsible investing, foundations increasingly seek to leverage financial markets for social gains. These resources help your foundation explore the emerging strategies and diverse options available.
In-Depth knowledge on Impact Investing
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
Prepared by the Southern New Hampshire University's School of Community Economic Development and available through Mission Investors Exchange, this case study explores the details of the F.B. Heron Foundation's rationale, exploration, and implementation of its mission-related investment strategy, and reviews tools (including PRIs), specific investments, interim outcomes, and lessons learned. The case study provides a walk-through of how Heron applies its Mission-related Investment Continuum to its portfolio.
By FSG Social Impact Advisors, this report provides the first comprehensive analysis of mission investing by U.S. foundations and analyzes the activity of 92 U.S. foundations, which have made a combined total of $2.3 billion of mission investments.
From the New Economics Foundation, Mission Possible considers how foundations might more effectively use a proportion of their endowment in support of the change they set out to create – their mission. Starting from the premise that paths are made by walking, it explores the potential of ‘mission-connected investment’ or MCI – defined as investment which promises a market return but also helps to achieve mission.
We are pleased to share a practical toolkit for community foundations looking to engage their donors in an impact investment program. Developed by Imprint Capital in partnership with The Greater Cincinnati Foundation, the toolkit outlines the entire process—from feasibility through implementation—to help a community foundation incorporate donor-advised funds (DAF) into their programs. Thanks to a generous grant from The Rockefeller Foundation, Imprint was able to test the concept with four community foundations fom 2010 to 2012 and identify multiple approaches to operating a DAF impact investment program.