Even as most of us remain fixated upon the highs and troughs of the stock market, there are those who, being driven by an increased consciousness of their responsibility towards society and the environment, have been investing in concerns with a social impact agenda. The KL Felicitas Foundation (or KLF) of Charly and Lisa Kleissner has grabbed headlines for proving the success of social impact investing in terms of a positive financial ROI.
A report published by Sonen Capital in October 2013, Evolution of an Impact Portfolio: From Implementation to Results discusses the KL Felicitas Foundation's (KLF) efforts in allocating 100% of its capital to impact investing over a period of seven years. As an early mover in impact investing, KLF's experience nicely displays early challenges and changes over time as the industry matured.
Impact investing — where private capital is harnessed for greater social good — has had several early successes as well as its share of challenges. While analysts predict the market could reach $1 trillion by 2020, less than $40 billion has been committed to date. Investors cite a variety of challenges, including the lack of an established track record of exits for investors in double-bottom-line companies and the perceived conflict between social responsibility and fiduciary duty.
Martin Reed has been selling sustainably-sourced seafood over the internet since 2010, but until recently he had never tried to sell investors on Blue Sea Labs, his San Francisco-based startup. This year, though, Reed decided to expand his company, which sells wild salmon, oysters and crabs on its ilovebluesea website.
Impact investors gather to learn about seafood start-ups Investors interested in both doing well and doing good gathered at Stanford University last week to hear over 20 sustainable seafood start-ups pitch their enterprises in our Fish 2.0 Competition Finals and Investor Ideas Exchange.
The recent release of details about the performance of several impact investment portfolios and funds is another step toward answering the question more and more investors are asking: Is impact a boost — or a bust — in terms of financial returns?
Stuck in traffic recently, I had time to check out the bumper sticker on the car ahead of me. Although faded by the sun, the message stood out: "The best way to predict the future is to create it." My husband, Charly, and I have been creating our future as long as I can remember.
The Law Commission, the statutory independent body that monitors the law in England and Wales to ensure it is fair, modern and cost-effective, is to review the powers of English and Welsh charities in relation to mixed-purpose social investment. Mixed-purpose social investment is a relatively recent phenomenon. The investment is made in part to achieve a financial return and in part to achieve a social benefit that furthers its objectives.
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