Generating Returns through Development Finance 2014: Impact Investment Report

Paper
Date Published: 
Apr 2015
Publisher: 

Discussing Finance in Motion’s approach for impact investments

This report provides an overview of the market for impact investments and highlights the different aspects of impact investments made by Finance in Motion (FIM). It highlights the achievements of FIM’s impact funds including European Fund for Southeast Europe, Green for Growth Fund, the SANAD fund for MSME, and eco.business. The report states that impact investments can be made in both emerging and developed markets, however, risk levels are higher in emerging markets resulting in the persistent lack of the long-term capital crucial to investments and development. It suggests that the key to success for any impact investment fund is in the way assets are originated, continuously monitored, and actively managed. The report covers the following sections in detail:

  • Meaning of impact investing and how such investments make a difference;
  • Tailored structures for impact investments funds with a focus on legal structure, governance, and profitability;
  • Creating impact while securing investments with a focus on setting up the right framework, the role of technical assistance, and measuring development performance and impact;
  • Core values and organizational aspects of FIM including human resources, corporate governance, environmental responsibility, and social responsibility.
Type: 
Paper