Catalyzing real change
When it comes to changing the world, Impact Investing is one of the best weapons in your arsenal. So what are the best options? And which ones make the most sense for a portfolio? Don't worry, we've assembled a handy list below to cover all your questions.
Asset classes
which are the investment options to choose from
- Venture Capital (VC) – investing in early stage companies (start-ups) with the potential for high return and impact.
- The ultimate primer on venture capital
- Example: AiiM Partners – investing in tech-enabled companies addressing climate change and ocean health.
- Venture Philanthropy – taking concepts/techniques from VC and applying them to philanthropy.
- Comprehensive Venture Philanthropy guide
- Example: Acumen – investing in social entrepreneurs to build sustainable approaches to philanthropy.
- Private Equity (PE) – very similar to VC, but the companies are more mature (no longer considered a “start-up”).
- Pitchbook summary of Private Equity
- Example: Blume Equity – investing in late stage companies transforming our food and healthcare systems.
- Private Debt – similar to VC and PE, but instead of investing in companies, you’re lending them money instead.
- Pitchbook summary of Private Debt
- Example: Better For You Capital – lending money to sustainable food brands.
- Hedge Funds – financial partnerships that employ different strategies across every asset class.
- Investopedia overview of Hedge Funds
- Example: Titan Advisors – a fully integrated ESG vehicle finding outperformance through a sustainable lens.
- Public Stocks – these are investments in the equity/stock of companies, that you can buy and sell at any time.
- Here’s a great summary of Public Stocks
- Example: Beyond Meat – a plant-based meat company offering climate friendly alternatives to factory farming.
- Public Bonds – you’re effectively lending money to companies/governments/etc for a certain amount of time.
- Here’s a great summary of Public Bonds
- Example: Breckindridge Capital – a sustainable bond portfolio using ESG principles
- Cash – there’s actually a way to have impact with your cash, and that’s who you decide to bank with:
- Global Alliance For Banking On Values: a network of banking leaders from around the world committed to advancing positive change in the banking sector.
- Bank FWD campaign: choosing a bank based on their role in reducing climate change
providers
platforms that can help you find impact investments
- Impact Assets 50: a curated list of impact investments from Impact Assets
- Phenix Capital Impact Database: a global database of public and private investments that are impact focused.
- Impact Management Project Database: a community approach to standardizing impact measurement & investment.
- Impact Agora: A platform that enables deal sharing for impact investments
- Toniic: Peer gatherings, online community, deal sharing, and a directory of impact investments
- Gaingels: a co-investment syndicate that invests in companies with LGBTQ+ leadership
advisors
who are some of the best advisors and consultants *these can/should be their own page, with a short commentary, video, etc explaining everything.
- Flat World Partners: providing research, tools and advisory services for impact investing
- Sorenson Impact Center: offers research, tools and advisory services for impact investing
- Sagana: they find, invest in and grow purpose-driven companies
- Potrero Impact: provides specialized services to clients seeking positive impact along with financial returns
- Align Impact: a female founded independent advisor and certified B Corporation with $1.6 billion of assets under advisement. Specialize in co-creating and implementing impact investing strategies
- Align17: connects you with opportunities to invest in funds and co-investments with leading impact fund managers
- Bridgespan: advises/consults with investors to enhance the social & environmental impact of their investments
- Tribe Impact: a UK-based wealth management boutique helping clients make impact investments
- Pathstone: an independent advisory firm offering customized investment advice with impact-related services
- Baseline Wealth Management: a leader in impact-driven wealth management, serving clients globally
- Tiedemann: privately owned wealth management firm with capabilities in the impact investing arena
- Brown Advisory: on a mission to make a material and positive impact in the lives of their clients
products
which types of offerings can you choose from
- Mutual Funds- these are publicly traded products that can own any asset class (stocks, bonds, currencies, etc).
- Here's a great summary on Mutual Funds
- Example: Pax Ellevate Global Women's Leadership Fund- investing in companies that invest in women.
- Here's a great summary on Mutual Funds
- Exchange Traded Funds (ETFs) - these are publicly traded products that can own any asset class (stocks, bonds, currencies, etc), traditionally with lower fees than mutual funds (but not always).
- Here's how ETF's work
- Example: Invesco Clean Energy ETF - investing in companies focused on clean energy and conservation.
- Here's how ETF's work
- Separately Managed Accounts (SMA) - these are accounts with higher minimums that are similar to mutual funds and etf's but are more customizable based on your sustainability and responsibility preferences.
- What exactly is an SMA and how do they work?
- Example: Aperio Group - using tax-efficient ESG strategies to invest in global equities.
- What exactly is an SMA and how do they work?
- Individual Investments - these are investments you can make directly into publicly traded stocks/bonds/etc (without using funds, ETF's, or SMA's). Individual investment are not technically "products."
- Vanguard has a helpful overview on Individual Investments
- Example: NextEra Energy Partners (NEP) - they acquire, manage, and own clean energy projects in the USA.
- Vanguard has a helpful overview on Individual Investments
- Private Investment Funds - these are private (often illiquid) funds that can own any asset class
- The GIIN put together a great summary on impact-driven Private Investment Funds
- Example: 50years - investing in founders using technology to solve the world's biggest problems.
- The GIIN put together a great summary on impact-driven Private Investment Funds
- Donor Advised Funds (DAF) - these are giving vehicles that combine investing and philanthropy to maximize impact.
- National Philanthropic Trust created a great overview of DAF's
- Example: Impact Assets - an impact-driven DAF that can help you marry your investments and donations.
- National Philanthropic Trust created a great overview of DAF's
- Structured Products - these are unique, pre-packaged investments that are usually novel and complex.