Impact investing

: the role of finance in changing the world (for the better)

Abstract

The purpose of this dissertation is to evaluate the potential of tackling the world’s most pressing social and environmental problems through financial investment practices more specifically, through impact investing. With such purpose in mind, the research questions were defined as: “What is impact investing?” and “How is the impact investing industry characterized?” According to the Global Impact Investing Network (GIIN), impact investments are defined as “investments made into companies, organizations, and funds with the intention to generate measurable social and environmental impact alongside a financial return.” The original aspect of this activity is the specific desire and intention to generate both financial and social returns. Impact investing has emerged as an answer to solving poverty and critical social and economic issues that neither governments nor charity alone could solve. Thus, it fills in the gap between the market and philanthropy. The structure adopted is a mix between a traditional dissertation and a case study. After introducing in further detail the purpose of the dissertation, we will review and discussed the concept of impact investing and its main characteristics, based on current literature. Then, we will characterize the impact investing industry, distinguishing its funds and companies. We will also present two organizations that illustrate the impact investing practice, through two short case studies. Finally, we will present the key conclusions of this dissertation.

Date of Award	2 Jul 2013
Original language	English
Awarding Institution	Universidade Católica Portuguesa
Supervisor	Susana Frazão Ferreira Fernandes Pinheiro (Supervisor)