Financial innovation for impact
Connecting the dots
As impact investment constantly develops, financial intermediaries are creating new, innovative financial products. From pay for success instruments, including social impact bonds and development impact bonds, to retail impact products and impact funds, intermediaries around the world are designing vehicles which allow investors to back ventures which align with their impact objectives.
Wealth advisors, brokers, dealers, fund managers and product developers foster crucial connections between investors and entrepreneurs. They help investors to “do good” and “do well” at the same time by connecting them with opportunities that offer both social and financial returns. Financial intermediaries also work closely with investees, helping them build capacity and optimize their business models for impact.
Financial intermediaries are focusing on the next generation of investors who believe in aligning their personal values with their financial objectives. In the next 30 years, $40tn of wealth will transfer to millennials, three-quarters of whom want to invest according to their values. Wealth intermediaries can learn how to create innovative impact-driven investment opportunities for this new generation of investors. Asset managers with a combined $50tn under management have already signed up to the UN Principles for Responsible Investment.