Source: Adapted from Bridges Fund Management (2014), PRI (2013), RISS (2019), UK NAB (2017), Impact Management Project (IMP) (2018). Approach.png (2048×1152) (phenixcapitalgroup.com)
Unlike other approaches of responsible investing, with Impact Investing, the impact must be intentional, measurable, and additional, which means that the impact would not have been achieved without the investment.
Historically, Impact Investing was associated with private equity, private debt investments (green and social bonds), and real assets such as infrastructure and real estate, and was reserved for high-net-worth individuals and institutional investors. Recently, the public market offering for retail investors has grown steadily from pure-play Impact Investing managers and larger, well-established firms. Specific themes include renewable energy, healthcare, sustainable agriculture, affordable housing and microfinance.