Giving Compass’ Take:
• Here is a brief overview that will help investors understand the array of players within the impact investing ecosystem.
• What is your position in the impact investing capital chain? How can you make the most impact by being aware of the players?
• Learn more about impact investing, here.
The following is an excerpt from Rockefeller Philanthropy Advisor’s forthcoming Impact Investing Handbook: A Practitioner’s Guide to Impact Investing.
The “Who” in impact investing starts with you. Whether you’re new to impact investing or further along in the journey, it is important to understand your position in the ecosystem of players and to consider what resources and influence you can engage to create impact across the capital chain.
From individuals to large institutions, there is a broad range of asset owners, each with distinct capabilities and resources, which will guide their practices. Your Who will guide your engagement with other market participants and stakeholders, drive your Why through a theory of change, and determine How you will ultimately deploy capital.
In order to successfully create impact, you will need to navigate a network of stakeholder relationships that are part of the flow of capital. As a supplier of capital, you will need to assess and understand the ultimate users of your capital as well as the intermediaries. Decisions about how much time, energy, and resources you want to spend will drive how you approach the intermediaries, such as the asset managers, who sit between you and the entities that create impact. While intermediaries are the bridge between your assets and impact creation, they can also create barriers. The expertise and willingness of an advisor to work with you on the creation and evolution of your impact strategy can be critical for its success.
- Asset Owners
- Asset Managers
As all of these actors work in concert, the impact market system creates impact as well as a financial return. The Impact Market System is a feedback loop of impact investments generating financial return along with impact. This feedback loop distinguishes impact investing from philanthropy and traditional investing.
Read the full article about impact investing by Patrick Briaud And Steven Godeke at Rockefeller Philanthropy Advisors.
If you are looking for more articles and resources for Impact Investing, take a look at these Giving Compass selections related to impact giving and Impact Investing.
Looking for a way to get involved?
If you are interested in Impact Investing, please see these relevant events, training, conferences or volunteering opportunities the Giving Compass team recommends.
Are you ready to give?
In addition to learning and connecting with others, taking action is a key step towards becoming an impact giver. If you are interested in giving with impact for Impact Investing take a look at these Giving Funds, Charitable Organizations or Projects.