Impact Investing Services Fuelling the Next Generation Of Investors

Impact Investing Services Fuelling the Next Generation Of Investors

The global investing landscape is experiencing significant changes. The admission that some of the world's biggest problems need market-based solutions changes the way people invest. Similarly, the proliferation of impact investing services has made it easier for people to pursue market-rate returns looking to play a pivotal role in solving an array of environmental, social, and governance issues.

The structural wealth transfer from baby boomers to millennials already has a significant impact on the investment world. Unlike in the past, where investors focused purely on returns, the need to invest for a cause has become a key tenant in investment decisions.

Next Generation Impact Investors

Millennials are the catalysts behind ESG investing, a new trend taking the investment world by storm. While previous generations aimed their investments at generating bumper returns, next-generation investors are looking to impact the environment and the human race with their investments positively.

Likewise, impact investment funds are increasingly cropping up, looking to profit from acknowledging that future finance will be shaped by next-generation investors focused on positive impacts.

Impact investment services have made it possible for next-generation investors to use their investments as a tool for realizing the change they would like to see in the world. Such services offered by ESG consulting firms such as The Altruist League also align investors' profit with their social purpose.

” Our impact investing research and consulting services are helping investors effectively deploy capital and align impact investing returns with impact objectives,” said Ekaterina Chernova, The Altruist League’s Managing partner.

With millennials expected to take over from baby boomers in a few years, impact investing is sure to take over the mainstream investment world. Impact investing has already overtaken angel investing in search volume, affirming its growing popularity and acceptance.

The trend around Impact Investing

As the next-generation form of investing, several trends are already manifesting themselves around impact investing. While the focus has been on millennials and their impact on sustainable investing, gender focus is also becoming a central theme.

The need to have more women in the investment world is already taking shape around impact investing and funds. Likewise, there should be a broader view of gender beyond women and girls and more into intersectional identities.

Similarly, push for the environment is also taking shape as impact investing is all about positively impacting. A good number of impact investing services are collating data and investment insights for investors focused on impacting the environment positively in addition to pursuing market returns.

“Climate focus is no longer a niche in the impact investing sector. Expect a wider and growing range of strategies focused on climate and environmental investing,” said, Milos Maricic, The Altruist League’s president.

Likewise, more announcements and partnerships between corporations, local communities, and impact investing funds are expected, all geared towards positively impacting the environment.

As technology brings people closer, so should it find its way into the realms of impact investing? While digitization promises to provide impact investors with more chances to support opportunities, it should also help them make informed decisions.

Most people have shrugged impact investments on sighting the lack of sufficient data and material needed to evaluate and gauge potential impact investment returns and impact. However, emerging technologies such as Artificial intelligence that enhance data collection and analysis promises to change everything.

The use of advanced technology to gain a competitive edge in selecting prospective investments that generate market-rate returns and have a significant impact should be the catalysts in drawing in more institutional investors. Likewise, it should be the catalyst in enhancing impact investing growth conversely takes it mainstream.

Traditional financial institutions are under immense pressure from clients and beneficiaries to make impact investing more accessible. Likewise, expect a shift of more meaningful engagement in impact investing from institutional investors going forward.

Impact investing has all but demystified the long-held notion that philanthropic donations should address ESG issues. Impact investing services have proved beyond doubt that it is possible to invest and positively impact the environment and human race and still be able to generate market-rate returns.

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