Trenton Allen, Managing Director and Chief Executive Officer of Sustainable Capital Advisors, said that while it is comfortable for investors to get returns at the market rate, low returns make it difficult to attract a lot of investors. “It’s not impossible,” he said. “But you are reducing the number of investors you have access to.”
Traditional influence investors also argue that it is already happening to accept different returns for different investments. Consider returns like bonds for fixed income types of risk.
“Impact Investment is a big tent and should be a big tent,” Nancy Pfund, managing partner at DBL Partners, an impact venture capital fund. He said, “The challenge is that we should not run short of water and think that investment is the only way first. We also do not want to take backward steps and deal with prejudice about the returns we have spent at least 10 years fighting. “
Even those who have taken the viewpoint agree that it is a luxury.
“If the priority of the event is effective, it’s a privilege, but you have to have a deeper tolerance for risk,” said Margot Kane, chief investment officer at Spring Point Partners, whose assets are intended for 19th-century coal mining .
For anyone considering taking the field, here are two key questions: How do you determine whether an investment qualifies as a first impression? And since influence, not back, is the primary motivation, how do you measure it?
Let’s start with the selection.
“When we are working on one of these projects, we ask ourselves, ‘Is this really a great catalytic investment or a very poor market rate investment?” Head of the Blue Haven Initiative and a family member whose funding comes from Hyatt Hotels.
“Honestly, it comes down to what problem they are trying to solve and whether the nature of that solution is super-scalable?” he said.