Spotlighting Social Returns of Impact Investing
This recent and relatively in-depth article (January 2015) offers a great look at the promise and excitement of impact investing: “Bannick says that if you picture a graph of the capital invested every year in the United States, it would look like a lopsided barbell: on one end, tens of trillions of dollars seeking the highest return possible; on the other, nearly $45 billion of philanthropic money seeking no return whatsoever. In the middle, very little. ‘We need to fill in that capital curve,’”he says. One potentially viable pool: high net-worth individuals. The 127 people to date who have signed the Gates-Buffett Giving Pledge, promising half of their money to philanthropic causes, have a net worth of around $600 billion. The Forbes listing of the richest 400 Americans alone totaled just over $2 trillion in 2013. ‘The pools of capital are absolutely massive,” says Bannick. “And while some may still be looking to maximize their investments, a lot of these folks would be willing to invest and get a more modest return, perhaps, while having a fabulous social impact.” Read the article.