RENEW Strategies

About Impact Investing

IMPACT INVESTING

Just the facts, please.

What is impact investing?

Impact investments are investments intended to create positive impact and financial returns.

Who are impact investors?

Investors range from philanthropic foundations to commercial financial institutions to high-net-worth-individuals, investing across the capital structure, across regions and business sectors, and with a range of impact objectives. RENEW focuses on high net worth individuals and groups that make direct investments into local businesses in developing countries. We call these investors “impact angels” because they are making angel investments into businesses at a critical stage of their growth.

What financial returns do impact investors expect?

Expectations vary depending on the investor. We target investments that generate returns greater than 20%. Increasingly, entrants to the impact investment market believe they need not sacrifice financial return in exchange for social impact.

How large is the impact investing market?

J.P. Morgan predicts that investments targeting the portion of the global population making less than $3,000/year will receive capital between $400 Billion to $1 Trillion, and generate a profit of between $183 to $667 Billion.

What are the ways investing creates impact?

RENEW focuses on job creation. We facilitate investments into high potential, fast growing businesses in developing countries that will create jobs and improve the livelihoods of employees and their families. Businesses in developing countries are also likely to purchase goods and services from other local businesses. Thus, by investing in a local business, investors have an impact multiplier effect in the local economy. An industry-recognized metric is that for every $1 invested in local businesses in developing countries, $13 of impact is realized in the local economy.