Conference Presentation, Panel, Fireside Chat
Impact Investing 2.0: Finding Value in Doing Good
- The impact investing sector is described as entering a "new inning" driven by a new class of entrepreneurs and investors seeking financial returns beyond market rates, with momentum expected to be reinforced by Wharton's research on 48 funds and 450 portfolio companies aimed at demystifying exits and encouraging liquidity.
- Future market evolution predicts corporations will become major partners by integrating sustainability into supply chains, while millennial entry into family office decision-making and a shift from pure philanthropy to Program Related Investment (PRI) structures will entrench impact investing in portfolios.
- Specific capital deployment plans include Dimple Sani's target allocation of one-third each to fixed income, venture/private equity, and permanent capital vehicles for the Anthos portfolio, with an expectation that family office capital may take up to a decade to reach 100% impact allocation.
- Water.org intends to scale its equity fund pilot across a seven-year partnership to serve more countries globally with a target 2% return, while also planning market research in China next year to expand its water credit initiative.
- Financial projections and risk assessments note a $200 billion annual capital gap over the next five years for global water and sanitation that requires bottom-up and top-down capital mobilization, alongside expectations that the "S.O.N.G." fund may achieve IRRs closer to 40% than 12%.
- Structural shifts anticipate government intervention, such as tax adjustments in India and regulations on pesticide use, alongside the emergence of organizations to certify impact-focused companies similar to B Corps and a market segmentation based on diverse capital types and return expectations.