Private equity impact investing

JANA Private Equity research team has been researching impact investing, including the evolution, structure and opportunities. This includes desktop analysis as well as meetings with over with 20 impact managers (both global and domestic managers). The findings from this research as well as key considerations are presented in this pack.

Executive Summary:

  • Impact investments are investments made into companies, organisations and funds with the intention to generate measurable social and environmental impact alongside financial return.
  • Impact strategies can target various environmental or social challenges. As a common framework, impact strategies are often presented as targeting select United Nation 17 Sustainable Development Goals (SDGs).
  • Whilst still a nascent investment area, impact investing has grown and evolved markedly in recent years. Seen through standardised impact objectives (UN SDGs) and improvement in impact measurement and tools.
  • Impact investments could theoretically arise in any asset class or geography. However, due to its innate investment characteristics, Private Equity investments are often well positioned to efficiently drive meaningful impact outcomes.
  • Whilst a growing area with significant opportunities (and capital need), impact investing also has its challenges. These include, limited capital directed to impact investments, limited number of quality PE impact managers, lack of successful track records, limited reliable impact data and the lack of common standardised impact metrics and measurement allowing for comparability and benchmarking.
  • Given these challenges in investing in private equity impact investments, JANA currently recommends a more diversified approach to impact investing. This can be done in a fee-effective approach via co-investments (pooled fund), or combination of co-investments and small allocation to primary funds (Fund of Funds).
  • JANA continues to expand its coverage of impact strategies.

Click here to read the full presentation

Sydney
9/255 George Street,
Sydney NSW 2000
02 9221 4066
JANAadmin@jana.com.au

Melbourne
9/530 Collins Street,
Melbourne VIC 3000
03 9602 5400
JANAadmin@jana.com.au

JANA respectfully acknowledges the Traditional Custodians of the land where we work and live. We pay our respects to Elders past, present and emerging. We celebrate the stories, culture and traditions of Aboriginal and Torres Strait Islander Elders of all communities who also work and live on this land.

We use cookies

Through the use of cookies on this website we aim to improve our services and enhance users online experience with us (e.g. website statistics), and does not identify individual customers but does identify internet browser. Where we do identify you, JANA treats any use or disclosure in accordance with our Privacy Policy.
  • Functional cookies
  • Advertising
  • Social media
JANA respectfully acknowledges the Traditional Custodians of the land where we work and live. We pay our respects to Elders past, present and emerging. We celebrate the stories, culture and traditions of Aboriginal and Torres Strait Islander Elders of all communities who also work and live on this land.