Impact investment wholesalers aim to improve lives by helping to build a market that connects finance to organizations that solve social problems.
This report shows how the first wholesalers are speeding up and scaling up impact investment in their countries, building a market which goes far beyond their direct activity, developing strong intermediary structures and connecting capital to social enterprises to help them achieve greater impact.
The Definition of an Impact Investment Wholesaler:
A wholesaler invests.
It invests indirectly (it invests in funds or other intermediaries). It may also invest directly (it may invest straight into social enterprises).
A wholesaler draws in other investment.
It invests in ways designed to catalyze capital from other investors (such as foundations, individuals and institutional investors).
A wholesaler measures, manages and reports impact and financial data.
It measures impact and financial data at the wholesale, intermediary and (if possible) enterprise levels. It reports as transparently as possible. It facilitates progress toward shared norms for measuring and managing impact.
A wholesaler seeks to develop its impact investment market.
It builds the market by methods outside investment. Among other efforts, it may strengthen enterprise capacity, encourage policy change, build new intermediaries and promote integrity.
The report draws principally on data, publications and interviews related to the two first wholesalers: Big Society Capital (BSC) in the UK and the European Investment Fund (the EIF) and its Social Impact Accelerator (the SIA). Further information was gathered from Portugal and Japan – both in late-stage design and implementation of their wholesale activities –as well as a number of other countries seeking to develop wholesalers.
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