List of Impact Investing Firms That Invest in a Better World

If you're interested in investing in a better world, there are many impact investing firms that align with your values.

Some notable firms include Acumen, which invests in companies addressing poverty and inequality in emerging markets.

Another firm, Impact Hub, supports social entrepreneurship and sustainable development through its network of community spaces and investments.

Root Capital, a nonprofit impact investor, provides financing and business advisory services to small and growing businesses in developing countries.

Impact investments aim to achieve both financial returns and positive social or environmental outcomes, making them a unique investment opportunity.

Impact investing requires the measurement and reporting of both financial performance and social/environmental results, ensuring transparency and accountability.

Impact investments can be made in a variety of sectors such as renewable energy, sustainable agriculture, healthcare, education, microfinance, and affordable housing, and can occur across all asset classes.

Here are some key benefits of impact investing:

Impact investments aim to achieve both financial returns and positive social or environmental outcomes. This dual focus sets them apart from traditional investments.

Impact investing requires the measurement and reporting of both financial performance and social/environmental results. This transparency ensures accountability and the genuine pursuit of dual objectives.

Impact investments can be made in a variety of sectors such as renewable energy, sustainable agriculture, healthcare, education, microfinance, and affordable housing. These investments are global, spanning both developed and developing countries.

Here are the key sectors and geographies where impact investments can occur:

Impact investing can occur across all asset classes, including but not limited to venture capital, private equity, debt, and fixed income. This means investors have a range of options to choose from when making an impact investment.

Our selection process is rigorous and designed to ensure that we include a diverse set of firms with experience in the field, scale in terms of AUM and investor base, and a commitment to impact.

To compile our annual list of fund managers, we assemble an annual Review Committee of experienced, respected impact investment leaders. They select firms according to a set of criteria developed to ensure a diverse set of firms.

The IA 50 Baseline Criteria includes a 5 year minimum operating history, which is a new requirement starting in 2025. Fund managers must also operate in a way that manages assets that are recoverable, accept US investment, have demonstrated financial capacity and oversight, and have demonstrated a significant commitment to social impact.

In addition to the Baseline Criteria, we also consider the size and composition of the application pool when selecting Emeritus Managers, who must have a minimum of 5 years on the IA 50 and demonstrated commitment to their impact thesis.

Emerging Impact Managers, on the other hand, must meet all of the Baseline Criteria except for the minimum operating history requirement, which is waived.

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The Grassroots Business Fund is a great example of an impact investing firm that's making a real difference. It's a global organization that provides financing and business advice to companies in developing economies.

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Their innovative financing vehicles offer long-term, risk-sharing capital to businesses that benefit low-income individuals. This approach has helped them invest over $30M and conduct over 200 advisory projects since 2011.

In terms of scale, some of the largest impact investing firms include Brookfield Asset Management, which has raised over $24 billion in the past five years. Other notable firms include TPG and Meridiam, which have raised over $13 billion and $10 billion, respectively.

Here are some notable impact investing firms, listed in no particular order:

These firms are making a significant impact in various sectors, such as renewable energy, affordable housing, and education. They're also investing in social enterprises and impact funds that focus on specific areas like healthcare and climate change.