Impact investing is the practice of investing in for-profit companies with the intention of generating to generate
both financial returns and social impact. The theory is that impact
investing can increase the capital available to a company, allowing it
to generatecreate more positive social outcomes than would otherwise have
occurred.
For impact investing to do good, it has to provide a company with more
capital than it would have otherwise received. This condition is often difficult unlesseasier
to meet when the investment is concessionary (sacrifices*concessionary* (sacrifices some level of
financial return against the market rate), or takes placeoccurs in a private market which
where other investors are unable or unwilling to invest in.invest.[1]
For impact investing to do good, it has to provide a company with more capital than it would have otherwise received. This condition is easier to meet when the investment is
*concessionary*concessionary (sacrifices some level of financial return against the market rate) or occurs in a private market where other investors are unable or unwilling to invest.[1]