Investment Advisory Services
The overall focus of impact investing funds that invest in socially impactful businesses, which include women owned businesses, is based on systematic, risk-adjusted financial performance, through the integration of environmental and social factors into the core decision-making processes.
Portfolio investments would typically be based on specific impact themes, such as health, education, job creation, affordable housing, renewable energy, sustainable water management, agriculture, or alternatively, on situations where a social or environmental need or dynamic creates a commercial growth opportunity.
Impact investment management approaches broadly focus on various levels of impact. A lower impact level generally involves the negative screening of investments that do not agree with an organization’s values. Examples of such investments would include companies involved in the business of tobacco, alcohol, gaming, or whose operations generate byproducts of pollution.
More significant levels of impact would range from actively seeking out investments, which would benefit from changing demographics or social and environmental trends, to highly targeted, theme based commercially focused investment.
Increasingly, impact investments are being sourced through both the public and the private markets. Broad impact investment strategies utilize public equity and fixed income markets to leverage a social or environmental trend advantage to outperform other benchmarks.
Private market investments typically take the form of private debt placements, private equity, venture capital or real assets. These investments generally have a more specific impact focus on sectors, regions or economies.
Additional benefits to an impact investment strategy may include reduction of overall portfolio volatility, lower portfolio asset correlation and a premium return over relative benchmarks with the incorporation of social and environmental factors.
At the end of the day, investors are transforming traditional investment practices into mission-aligned social and financial intentions. Maximizing the value of capital by investing for good.
We at Perfect World Capital provide consulting services for impactful companies looking to obtain financing to grow their businesses.
Investing for Social and Environmental Impact