ImpactBase Snapshot

According to a J.P. Morgan-GIIN report, 125 impact investors worldwide reported plans to increase impact investing commitments by 19% in 2014, from USD 10.6 billion in 2013 to USD 12.7 billion. Respondents also reported growth in their number of investments by 20% in 2013 and committed capital by 10%. Out of the 125 respondents, nearly half (61) were fund managers, managing a total of USD 15.7 billion in impact investment capital. ImpactBase is a preeminent source of data on impact investing funds worldwide, profiling over 300 funds operating across geographies, sectors, asset classes, and impact themes. The database provides several useful insights into the intermediary landscape. This report aims to highlight observable trends that will provide actionable data for impact investors. The findings are based on data from 310 funds downloaded from ImpactBase in August 2014. The impact investing fund landscape is broad, with investment opportunities for nearly every investor, regardless of their target geography, asset class, impact theme, or rate of return. The landscape is also deep, with over 40% of funds in ImpactBase reporting 3+ years of track record. There are significant market-rate investment opportunities in the industry, with more than 75% of funds targeting returns comparable to traditional investments of a similar risk-return profile. Fund managers are actively looking to raise capital, with the average fund committed capital being USD 52.5 million and the average fund target AUM being USD 110 million. Impact measurement is core to fund manager activity, with nearly all impact fund managers using metrics to quantify their social and/or environmental impact. Over half track IRIS-compatible metrics, and many have been formally rated on their impact performance. The majority of funds on ImpactBase have a social focus, with 151 funds out of 310 having a social focus. Environmental funds tend to focus their investment opportunities in North America, while socially focused funds are more evenly distributed in terms of geographic focus. A sizeable number (115) have a triple bottom line focus. The geographic focus of funds in ImpactBase is diverse, with over 25% of funds investing only in North America. Forty-two funds invest only in Africa, 37 target only Asia, while 52 invest across multiple emerging market continents. There are also 42 funds that invest across a range of both emerging and developed markets. The asset class distribution is also diverse, with PE/VC funds representing approximately half of the funds profiled on ImpactBase. About 20% of funds are fixed income, while 20% also invest using multiple instruments. The fund size distribution is also notable, with real asset funds being more likely to be large in size, while emerging market funds tend to be smaller. Interestingly, there are more than twice as many 'small' PE/VC funds than there are 'large' ones. Most funds listed on ImpactBase have been incepted in recent years, with nearly 70% launched after 2009. PE/VC funds have driven recent growth, with over 50% of funds incepted post-2005 being PE/VC. Consistent with the distribution presented, most funds are currently open, with only 8% being currently marked as 'Completed' or 'Closed: no longer investing.'