Giving Compass' Take:

• The MacArthur Foundation explain four lessons from their years of impact investing, expanding on themes such as innovation, collaboration and systems change. 

• Is there a way that thought-leaders in the field of impact investing can have a platform where all useful information can be gathered in one place? How can foundations navigate this new(er) practice together? 

• Read ImpactAlpha's debunking myths about impact investing as a reference point to gain a more grounded understanding of what it really is. 

Today’s fast-growing impact investing market is expected to top $300 billion by 2020. But back in 1983, when MacArthur made its first program-related investment (PRI), the practice we now call impact investing was little more than a hopeful experiment, aiming to fuel social and environmental gains. No one really knew if it could make a significant difference.

More than 30 years have since passed. Over that time, MacArthur’s impact investing team has put more than $500 million to work in support of 240+ impact investments.

Looking back, four key lessons emerge from this long experience – lessons that continue to inform our work today as we develop new strategies to bridge tough capital gaps, extend our reach, and accelerate promising opportunities for progress and change.

  1. Take early risk to foster innovation.
  2. Invest in intermediaries to multiply impact.
  3. Collaborate and partner to reach scale.
  4. Complement investments with grants to unlock systems change.

Taking stock of MacArthur’s impact investing over the years, we know we can build bridges between investors looking for high-impact opportunities and organizations tackling the most difficult global problems.

Read the full article about impact investing by Debra Schwartz at MacArthur Foundation