GSG Impact

💸 Today wholesale impact investors throughout the world manage over $3bn. What are the lessons from their success, and how can we roll-out more at scale and pace? 📶 This new report details the experience of 19 GSG Impact National Partner 🌐 countries and regions in Africa, Europe, Asia and Latin America. 11 are established, managing an aggregated $3.1 billion, with eight in development, a 280% increase 📈 on the five in operation in 2019. Through an analysis of existing governance models, financial structures, funding sources, impact measurement practices, and investment strategies, set in the context of individual markets and countries, the report is a 🔎 “how to” guide for market builders, governments and both public and private sector investment managers. Detailed examples demonstrate the catalytic role of wholesale impact investors to attract additional capital, bring new impact investors to market and develop the broader market. Key criteria for success, wholesalers should:  🏛️ Have government support, but independent management 🎯 Take an impact first approach 💼 Focus on financing and developing intermediaries 🔄 Increase the flexibility and availability of capital 🌱 Be self-sustaining 🌍 Promote diversity, equity and inclusion 🤝 Collaborate with market stakeholders to innovate new investment products Read ⬇️ Cliff Prior │ Gila Norich│ Kyungmin Park│ JinKyung Choi │Sir Ronald Cohen│ Stephen Muers, Better Society Capital│ Ana Laura Fernández, Fondo de Fondos│Amma Lartey, Impact Investing Ghana│Austin Mwape, Peter Chintu, Zambian National Advisory Board for Impact Investment (NABII)│Etemore Glover - (MBA), Impact Investors Foundation IIF│Filipe Almeida │Masataka Uo, GSG Impact JAPAN │Chul Woo Moon│Jillisa Brown│Şafak Müderrisgil, Etki Yatırımı Danışma Kurulu "EYDK" - Impact Investing Advisory Board, Türkiye NAB│David Hetherington, Impact Investing Australia│Susanne Bregy, Bundesinitiative Impact Investing│Atika Benedikta│Monica Rossi, Impact Investing SA│Jose Luis Ruiz de Munain, SpainNAB │ Access - The Foundation for Social Investment│Pathway Fund │Silvia Manca │European Investment Fund (EIF) #wholesaler #ImpactInvesting #impactinvestors #SustainableFinance

📣 The European impact investing market has reached €190 billion, get the full break down on asset classes, countries, sources of capital, and investment flow ⬇️ The European impact investing market — comprising both direct and indirect investments in unlisted assets — is estimated at €190 billion increasing from €80 billion in two years. The latest market sizing research from the European Impact Investing Consortium (Impact Europe, GSG Impact, Hellenic Impact Investing Network, Impact Finance Belgium, Impact Investing Institute, Netherlands Advisory Board on Impact Investing, Social Impact Agenda per l'Italia - GSG Impact Partner, SpainNAB, FAIR - Label Finansol, Etki Yatırımı Danışma Kurulu "EYDK" - Impact Investing Advisory Board, Türkiye NAB) shows: 📈 €190 billion represents 2.5% of the €7.6 trillion of AUM the Consortium considers eligible for impact investing in Europe 💪 62% of the investments have some element of additionality i.e. a positive impact that would not have happened without the investment, this compares to 48% in 2022 🌍 The market is currently led by the UK (29%), the Netherlands (25%) and France (22%) ➡️ Venture capital and private equity impact fund managers represent 45% of the investors included in the study, holding 39% of direct AUM in unlisted impact assets. ✅ Institutional investors account for 28% of the total capital made available to impact investors, followed by Banking Institutions (22%), State or Local Public Funds (14%) then Individual Investors (6%) 🌐 45% of investments are made outside of Europe, Africa (18%), Asia (12%), Latin America (8%), North America (6%) The Consortium also makes several calls to action: ➡️ Impact investors should embrace their new role as market influencers 💡 Mainstream, responsible and sustainable investors should integrate impact investing into their ESG strategies 📈 Policymakers should build on the current evidence to scale the impact investing market The report also includes an analysis of European impact’s role in meeting the SDGs. 👏 Congratulations to everyone involved in producing the second harmonised European market sizing report, including Raffaella De Felice representing GSG Impact.

Blended Finance in action: Bridging India's Funding Gaps 🏗️💰 A landscape study on Blended Finance in India and its potential to plug🔌investment gaps, by the Asha Impact, Impact Investors Council (IIC) (our National Partner), and Societe Generale reveals both the growth in the use of blended finance in India and challenges. ⬇️ 1️⃣ Market Growth: India’s BF market reached $1.3B in 2022 and is projected to hit $2.64B by 2027. 2️⃣ Key Actors: unlike global trends led by DFIs and MDBs, India’s BF market is driven by NBFCs and banks, accounting for 43% of the ~180 transactions during 2010-2022. 3️⃣ Key Sectors: financial services and energy dominate the market, with agriculture and livelihoods quickly gaining traction. 4️⃣ Challenges: the need for regulatory clarity, standardised frameworks, and greater transparency to unlock more domestic philanthropic capital and meet India’s SDG goals. 5️⃣ Trends: over the last 13 years, India’s BF market averaged leverage of 5.06x, with concessional/subordinated capital at 5-6x, guarantees and risk insurance at 2.5-3x, and results-based financing at just over 2x. Read more ⬇ #BlendedFinance #India #EmergingMarkets  #impacteconomy Acknowledgements: Asha Impact Trust (Aparna Dua, Swati Shah Gupta, Shivika Chauhan, Maitreyi Menon), India Impact Investors Council (Ramraj Pai, Divya Pinge)

💶 €3.3 Billion in Impact Assets Under Management in Spain 🇪🇸 The latest report, “The Supply of Impact Capital in Spain in 2023", from SpainNAB, our National Partner, reveals notable growth 📈 and new developments driving the impact investing landscape in Spain. Pioneers Post recently covered the main findings from their report, the launch of a Spanish wholesale impact investor and a new Social Impact Bond ➡️ <link to their LinkedIn post: https://lnkd.in/d8uSufiS> 1️⃣ €1.52 Billion in Direct Impact Investment backed by €1.74 billion from banks and financial cooperatives 2️⃣ Private Funds surged by 32% this year, with 18 fund managers and 30 dedicated impact funds now actively investing 3️⃣ Ten new investment vehicles had been developed during 2023, and the total funding had increased by 10%. 💸 Impact Wholesaler: Spain’s Fondo de Impacto Social (FIS), an upcoming €400 million wholesaler managed by COFIDES, aims to fund high-impact social 👥 and environmental projects and attract further private investment. 💸 Social Impact Bond: Spain’s first social impact bond, “Málaga No Caduca”, developed through a collaboration between the Diputación de Málaga, the Confederación de Empresarios de Andalucía (CEA), and the Universidad de Málaga (UMA). It will address food waste 🥡 and food insecurity among vulnerable families, run from 2025 to 2030. Acknowledgement: Esade Center for Social Impact ( Guillermo Casasnovas, Teresa Picardo Gomendio, Helena Monill), SpainNAB (Marta González Labián, CESGA., Jose Luis Ruiz de Munain), CaixaBank, Cofides, Ángela Pérez  #ImpactInvesting #Spain #SocialImpact #ImpactEconomy

🔍 The Four Characteristics of an Impact Investment Wholesaler ⬇️ Here’s what makes them unique: 1️⃣ Direct & Flexible Investment: They provide repayable finance to funds or other financial intermediaries. If the market is still nascent, they may also invest directly in enterprises, accelerators, incubators, and other initiatives, as well as provide grants. 2️⃣ Capital Catalyst: They draw in catalytic and commercial investments. They create financial instruments and invest in strategies to attract capital from various providers with differing return expectations, such as foundations, individuals, institutional investors, and government entities. 3️⃣ Focused on Impact: They focus on creating market-led solutions for social and environmental challenges that produce measurable positive impact. They provide impact measurement and management data at wholesale and intermediary levels, promoting shared norms and practices for effective impact management. 4️⃣ Broad Sector Reach: They develop the market through various approaches beyond investment. These efforts may include strengthening enterprise capacity, running educational and investment readiness programs, encouraging policy change, building new intermediaries, and promoting market transparency and integrity. For more, read our “Impact Investment Wholesalers and Fund of Funds” report here ➡️ https://lnkd.in/dSWw97EX #ImpactInvesting #CatalyticCapital #MarketDevelopment #SocialImpact Cliff Prior │ Gila Norich│ Kyungmin Park│ JinKyung Choi │Sir Ronald Cohen│ Better Society Capital│ Fondo de Fondos│ Impact Investing Ghana│ Zambian National Advisory Board for Impact Investment (NABII)│Impact Investors Foundation IIF│ GSG Impact JAPAN │Etki Yatırımı Danışma Kurulu "EYDK" - Impact Investing Advisory Board, Türkiye NAB│Impact Investing Australia│Bundesinitiative Impact Investing│ Impact Investing SA│SpainNAB │ Access - The Foundation for Social Investment│Pathway Fund │European Investment Fund (EIF)

Natural Capital Investing: 👀 Insights from FT Live's Global Wealth Management Summit💡 Our Chief Strategy Officer, Alasdair Maclay, joined global leaders in sustainable finance to discuss opportunities for wealth managers in natural capital investing and how it can address climate and biodiversity crises. Highlights from the discussion ⬇️ 🔹Alasdair discussed the need for 💡 clever financing, including government guarantees and blended finance, to access attractive financial risk-return opportunities. He highlighted the importance of comprehensive education to guide investment professionals in new nature-positive 🌱 opportunities. 🔹Romie Goedicke den Hertog, United Nations Environment Programme Finance Initiative (UNEP FI), spoke about the Montreal Global Biodiversity Framework and Taskforce on Nature-related Financial Disclosures (TNFD) as essential for accelerating sustainable economies. He highlighted COP 16’s biodiversity framework and stressed the need for transparency in biodiversity credits, especially to support Indigenous communities 🤲🏽. 🔹Margaret Franklin, CFA, CFA Institute, highlighted a knowledge gap in natural capital investing, calling for robust standards to prevent 🚫 greenwashing in ESG funds. 🔹Harlin Singh Urofsky, Citi, covered how family offices are moving beyond philanthropy to profit-driven biodiversity investments, with a strong interest in high-impact projects like rewilding 🌳, which also offer solid returns. 🕳️💰 $700B Biodiversity Finance Gap: panellists highlighted the gap as a barrier to biodiversity goals, urging greater resource allocation. 📊 Standards & Metrics: panellists stressed the need for stronger metrics and disclosures to address market inconsistencies and greenwashing in biodiversity credits. Elisa Battaglia Trovato #FTWealth #impactinvesting #GreenFinance #NatureBasedSolutions

🌍 ‘Investing for Impact in Nigeria: A Deep Dive into Agriculture, Education, and Health Sectors’ 🇳🇬 The Impact Investors Foundation IIF, our Nigerian National Partner, and the Nigerian Economic Summit Group (NESG) reveal in their 2023’ report that the Nigerian financial market is not equipped to meet MSME funding needs such as equity funding, grants, low-cost debt financing, and patient capital. Key sectors: 📊 Agriculture: employing 36% of the population, the sector needs investment in sustainable farming and resilience innovations. 📚 Education: funding gap remains, with investment needed in tech-driven learning and vocational training for job readiness. ⚕️ Health: opportunities include affordable healthcare infrastructure and telemedicine to improve access and reduce disparities. Most impact investment in Nigeria comes from international investors and the deals are limited compared to the demand, while local investors perceive that these investments do not translate into financial returns. The report calls for collaboration to overcome these challenges and scale impact solutions. Read more ⬇️ #ImpactInvesting #Nigeria #Agriculture #Education #Healthcare Supported by GSG Impact and On Think Tanks. Funded by the International Development Research Centre (IDRC) Acknowledgements: Ibukun Awosika, Etemore Glover - (MBA), Olusegun Omisakin, Ph.D., Shakirudeen Taiwo, Ph.D., Faith A. Iyoha, PhD, Sodik Adejonwo Olofin, wasiu adekunle, Seyi Vincent, Temitope Oladele, Joseph Ubek, Emmanuel Ejewule, MDP, Ogunfuwa Ifeoluwa, Olu Ogunfowora, Gila Norich

Impact is becoming part of the mainstream investment conversation in Spain 🗣️🌱 At SpainNAB’s fifth annual conference last month at CaixaForum, our President, Sir Ronald Cohen, reflected on Spain’s journey in advancing impact investing. Since 🚀 the launch of SpainNAB as our National Partner, Spain has gone from early conversations to establishing key institutions like COFIDES and AGENCIA ESPAÑOLA DE COOPERACION INTERNACIONAL PARA EL DESARROLLO - AECID.   This event brought together leaders from companies, government, and associations to share best practices and actionable steps for promoting positive social change and #InversióndeImpacto. Sir Ronnie introduced our Impact Investment Wholesalers and Fund of Funds report, which highlights the expanding role of impact investment wholesalers in building sustainable markets globally. With 19 wholesalers either ✅ active or in development 🔧 — including Spain’s Fondo de Impacto Social (FIS), the UK’s Better Society Capital, Canada’s Social Finance Fund, and Korea Social Value and Solidarity Foundation — report reveals a 280% 📈 increase in impact investment wholesale vehicles over the past five years. Read the report ➡️ https://lnkd.in/dSWw97EX Read more about SpainNAB’s conference ➡️ https://lnkd.in/dUdB9SKU #CaminoalImpacto #spain #impactinvesting #wholesaler

🎉The INDIGO Impact Bond database - now covers 300 Impact Bonds! The International Network for Data on Impact and Government Outcomes (INDIGO) Impact Bond Dataset, curated by the Government Outcomes Lab, University of Oxford, has reached 300 impact bonds—the largest open-access resource of its kind! 🌍 🔗 https://lnkd.in/d5PGrVun At GSG Impact, we rely on INDIGO as a key database for tracking Social Impact Bonds and fostering innovation in the financial sector. This tool inspires action across continents, helping drive effective solutions to social challenges. Our Head of Knowledge Management, Raffaella De Felice, shares: Juliana Outes Velarde, Radana Crhova, Children's Investment Fund Foundation (CIFF), UBS, Foreign, Commonwealth and Development Office, Department for Culture, Media and Sport #ImpactInvesting #SocialImpact #DataForGood 

At today’s G20 Social Summit in Rio, G20 For Impact, convened by Marcel Fukayama, will cover how impact solutions are helping deliver the Brazil G20 presidency priorities ⬇️ G20 for Impact is an international coalition🫱🏼🫲🏽🌐 brought together by Marcel Fukayama, Chair of Aliança pelo Impacto, our Brazil National Partner. Through-out the lead-up to next week’s G20 Summit, it has provided comprehensive recommendations to help deliver the Brazil G20 priorities, and ultimately enable the transition to an inclusive, equitable, and sustainable economy. GSG Impact has been delighted to support this work, and today our Chief Policy Officer, Sebastián Welisiejko, speaking 🗣️ at the G20 For Impact plenary at the Social Summit, will highlight how Outcomes Based Financing can drive innovation and value in public service delivery. Aligned with the G20 agenda, G20 For Impact has delivered a series of proposals throughout the process, with the recommendations structured within three areas: 🔓 Unlocking private capital 📊 Shifting economic models and indexes 🏛️ Improving the Institutional and regulatory environment to create impact economies To read all the proposals and learn more about G20 For Impact, please visit 🔗 g20peloimpacto.org We 👏 congratulate Marcel on this important initiative and look forward to continuing our work with G20 For Impact next year under the South African presidency of the G20. #sustainablefinance #g20 #SustainabilityStandards #g20brasil Global Alliance of Impact Lawyers (GAIL), Sistema B Brasil, Impact Europe, Latimpacto, AVPN, Skoll Foundation, Ashoka, African Venture Philanthropy Alliance (AVPA), Schwab Foundation for Social Entrepreneurship, Climate Action Platform for Africa (CAP-A), Aspen Network of Development Entrepreneurs, B Lab, Catalyst 2030