Impact Investing: harnessing capital markets to solve societal problems

In the post GFC environment, with the risk and return matrix and reputation risk to corporations and financial institutions, capital markets are attracted to social impact investing. Impact investing, or social impact investing, offers opportunities for investors with a commitment to social responsibility to invest in solutions to entrenched societal problems for both financial and social returns. Successful impact investing is applied to well-designed solutions to problems such as overcrowded social housing and employment programs for at-risk populations to harness the speed and efficiency of capital markets, and, at the same time, prevent wasteful government spending.