Impact investments are investments made into companies, with the intention to generate social and environmental impact alongside a financial return. Impact investments can be made in both emerging and developed markets, and target a range of returns from below market to market rate, depending upon the circumstances.
This sector is now making greater use of private capital.
Largillière-Finance/I-dealnet has developed an in-house method for qualifying companies and investments as falling within the realm of impact investing. The tool aims at measuring the social impact of enterprises and investments and is e.g. useful towards investors and buyers who care about social impact.