Read time – 2 minutes 30 seconds
Social finance, impact investing, blended finance…the endless industry jargon and terminology in this emerging asset class can be confusing. In this series, our industry leading global Social Impact Finance group looks to demystify the social finance market and its growing importance for financial institutions and investors.
Greed is no longer good. The next generation of investors increasingly demand that their investments do more than just generate a financial return. Demand for social investment products is driven, in part, by millennials who prefer to invest in alignment with personal values. In response to this growing demand, chatter in financial markets is awash with talk of the ‘spectrum of capital’ – a map of the broad range of risk and return strategies that exist within impact investing markets, and how those relate to wider capital market strategies. The 2014 report from the G8 Social Impact Investment Taskforce, Asset Allocation Working Group, illustrated the landscape based on both investor financial objectives and impact (see diagram below).
Continue Reading Impact Finance Series: The Spectrum of Capital