The Ninth Edition: GIIN Annual Impact Investor Survey 2019

The survey presents findings on the state of the impact investing market, including new sections exploring human resources, diversity, equity, and inclusion, and the role of governments in supporting the industry. The impact investing industry is diverse, with nearly two-thirds of respondents identifying as fund managers, while the rest are various other organization types, including foundations, banks, and family offices. A majority of respondents are headquartered in developed markets, most commonly the U.S. and Canada, and WNS Europe. Two-thirds of respondents make only impact investments, while the remaining third also make conventional investments. Respondents have diverse asset allocations, managing USD 239 billion in impact investing assets, which they invest across geographies, sectors, and instruments. Investors allocate capital globally, with about half of total assets allocated to emerging markets and half to developed markets. By sector, respondents have committed to basic services, with the greatest share of assets allocated to energy, microfinance, and other financial services. The impact investing market continues to grow and mature, with collectively, respondents managing USD 239 billion in impact investing assets. A subset of 80 respondent organizations that participated in the Annual Survey both four years ago and this year grew their impact investing assets from USD 37 billion four years ago to nearly USD 69 billion this year, a compound annual growth rate (CAGR) of nearly 17%. Over this four-year period, the geographies that experienced strongest growth were MENA (CAGR of 43%) and South Asia (24%), while the fastest growing sectors were infrastructure (61%), WASH (43%), and ICT (43%). Respondents also forecast strong future growth, planning to invest over USD 37 billion into more than 15,000 investments during 2019, reflecting 13% projected growth in the volume of capital invested and 14% growth in their number of investments. Respondents perceive substantial progress across the industry in several areas, including the availability of research and the sophistication of impact measurement and management practice. However, challenges remain, including the lack of appropriate capital across the risk-return spectrum and suitable exit options. Impact measurement and management is central to investors' goals and practices, with nearly universally, impact investors measuring and managing their impact. Respondents make impact investments because they are part of their commitment as responsible investors and because intentionally pursuing impact is central to their mission. Over 60% of investors specifically track their investment performance to the United Nations' Sustainable Development Goal (SDGs), driven by a desire to integrate into a global development paradigm. Respondents report performance in line with both financial and impact expectations, with over 90% of respondents reporting performance in line with or exceeding both their impact and their financial expectations. About 15% indicated outperforming their expectations since inception. Respondents also reported their average gross realized returns since inception, with market-rate-seeking investments generally outperforming impact investments.