The Wharton School of the University of Pennsylvania has released a new report ‘Great Expectations: Mission Preservation and Financial Performance in Impact Investments’.
The report analyses two important aspects of impact investing – financial returns and long-term impact. It specifically explores the ability of impact investing private equity funds to achieve market rate performance, and also examines what might happen to a portfolio company’s social or environmental mission when its impact investors seek liquidity.
The report’s findings suggest that – in a number of market segments – impact investing private equity funds can achieve market-rate results comparable to market indices.
The data included the performance of 53 impact investing private equity funds representing 557 individual investments – relative to the public market indices such as the Russell 2000 and other benchmark indices.
The research for the report was supervised by two Wharton finance professors, David Musto and Chris Geczy, and authored by the Wharton Social Impact Initiative (WSII).
Professor Gezcy comments: ‘Our research fills a near-void of rigorous analysis of private investment and social impact outcomes and most importantly the link between the ideals of doing well and doing good…It represents an exciting initial advancement in our ongoing social impact research agenda.’
For read the full report and learn more about the findings, please click here.