Impact Investing Continues to Attract Billions Despite Market Shifts

Private-market investing aimed at social and environmental impact remains strong, even if it’s no longer in the spotlight, according to ImpactAssets’ latest report.

The list excludes major asset managers like KKR’s Global Impact Fund and Bain Capital’s Double Impact. I Photo: KKR

Assets under management in impact investing strategies—including private equity, private debt, and venture capital—have surged 35%, Barron’s Daily reporters Abby Schultz and Janet H. Cho wrote.

The ImpactAssets 50 list, now in its 14th year, features 50 private investment managers with at least three years of track record. Nearly half manage $1 billion or more in assets.

Among them are Switzerland-based Blue Earth Capital, New York’s ReThink Capital Partners, and New Orleans’ Enhanced Capital. The list excludes major asset managers like KKR’s Global Impact Fund and Bain Capital’s Double Impact.

Of the top 50 firms, 74% aim for market-rate or above-market returns, while others focus on high-risk, early-stage investments in underfunded areas.

Jed Emerson, chair of the list’s review committee, emphasized the need for patient capital where traditional investors “aren’t willing to go.”

Among 165 firms listed, 50% focus on social themes like financial inclusion and community development, 33% invest in climate solutions, and the rest emphasize place-based impact or diversified strategies.

Impact investing isn’t just for mission-driven investors. “If you’re a long-term asset owner and you’re not thinking about climate risk or the opportunities in climate tech, you’re not truly managing your investment framework effectively,” Emerson told Barron’s.