Insight Report: Impact Investments 2015 – Global Opportunities

Impact investments have become a new investment option among HNWIs and UHNWIs worldwide. They have significantly increased in market size, despite their relatively recent development in 2007.

JP Morgan and Global Impact Investing Network (GIIN) estimated the market size of impact investments at around US$46 billion in 2013. In the UK market, impact investments valued GBP200 million in 2014, and are set to grow to GBP1 billion by 2016. Different investment types – ‘finance first’ or ‘impact first’ – make the asset rather complex and difficult to value. This has led to the development of a separate wealth management division in private banks, often known as sustainable investing, responsible investing, or social finance divisions.

While the majority of impact investment supply-side participants – HNWIs, corporate investors, asset managers, wealth managers and private banks – are based in developed countries such as the UK and the US, the majority of demand-side participants are based in emerging countries such as South Africa, Nigeria, Kenya, China, Brazil and India. This structure generates gaps in the wealth management market, requiring further research.

This report aims to provide an in-depth analysis of key market insights and the future outlook of impact investment over the forecast period.

Scope

What percentage of impact investment funds are headquartered in Europe and North America?

What is the percentage of impact investment capital being channeled towards emerging markets?

Which two financial sectors combined, accounted for 42% of global impact investment funds in 2014?

Which five other diverse sectors account for the remainder of the global total?

In which region, and in which wealth band, are impact investments becoming increasingly important?

What category of impact investments is growing significantly in emerging economies?

What is a key barrier for impact investment growth?

Key Highlights

What percentage of impact investment funds are headquartered in Europe and North America?

What is the percentage of impact investment capital being channeled towards emerging markets?

Which two financial sectors combined, accounted for 42% of global impact investment funds in 2014?

Which five other diverse sectors account for the remainder of the global total?

In which region, and in which wealth band, are impact investments becoming increasingly important?

What category of impact investments is growing significantly in emerging economies?

What is a key barrier for impact investment growth?

Reasons to buy

• Understand the significance of impact investments in the wealth management sector, and recognize how this asset class can have potential benefits to private banks.

• Be informed about latest market trends on impact investment products and services offerings in the six regions studied, and draw competitor analysis.

• Be aware of attitudes of wealth managers and private banks towards the future outlook of impact investments.

• Make informed decisions about impact investment growth and build better business strategies to target impact investors.

Companies mentioned

Barclays, Lloyds, Royal Bank of Scotland, Deutsche Bank, Credit Suisse, Acumen Fund, Rockefeller Foundation, B Lab, Royal Bank of Canada Wealth Management, Capgemini, ABN AMRO, Azuri Technologies, Family Bhive, BNP Paribas, JPMorgan Chase & Co., HSBC, Bank of America Merrill Lynch, Goldman Sachs, Citi Group, Triodos Bank, LeapFrog Investments, Avantage Ventures, STREAT Enterprises Pty. Ltd., Threadneedle Investments, UBS, TD Bank, Northern Trust, BNY Mellon, Credit Agricole, Societe Generale, Standard Chartered, Lombard Odier, Grameen Bank, ICICI Bank, Yes bank, Westpac, Daiwa Securities Group, Itau Unibanco, Banco Bradesco, BBVA, Al Tamimi Investments, Abraaj Group, Legatum, Mercator Bank, Oxfam Solidarity, Embrace, Digital Green, Lighter of Light, Capricorn Investment Group, Khosla Impact Fund, Farmland LP, Calvert Foundation, Eco Enterprise Fund, Elevar Equity, BlueOrchard Finance S.A, Core Innovation Capital, Grassroots Business Fund, MicroVest Capital Management, Bamboo Finance, Craft3, DBL Investors, Vox Capital, Vital Capital Fund, Treetops Capital LLP, The Reinvestment Fund, Symbiotics SA, Toyota, Morgan Stanley, Bridges Ventures Limited, Satori Capital LLC, Maverick Capital Ltd., Climatecom Strategies, Satya Capital Limited, Celtel International, Facebook, Contrarian Capital India Partners, Motilal Oswal Financial Services Ltd, Wipro Ltd

Table of Contents

1 Introduction

1.1 What is this Report About?

1.2 Definitions and Scope

2 Executive Summary

3 Attitudes of Wealth Managers and Private Banks to Targeting Impact Investors

3.1 Key Market Insights into Impact Investments

3.2 Future Outlook of Impact Investments

4 Global Market Snapshot of Impact Investments

4.1 Definition of Impact Investments and Key Characteristics

4.2 Global Market Size of Impact Investments

4.3 Market Potential of Impact Investments

4.4 Drivers and Barriers of Impact Investments

4.4.1 Drivers

4.4.2 Barriers

4.5 Key Products and Services Offerings

4.5.1 North America

4.5.1 Europe

4.5.2 Asia-Pacific

4.5.3 Latin America

4.5.4 Middle East

4.5.5 Africa

5. Strategies for Targeting Impact Investments, and Key Market Regulations

5.1 Strategies Followed by Private Banks and Wealth Managers

5.2 Strategies Followed by Fund Managers

5.3 Government Strategies to Promote Impact Investment Options

5.4 Key Market Regulations in Impact Investments

6. Case Studies: High-Profile HNWI and UHNWI Impact Investors

6.1 Mark Zuckerberg

6.2 Mo Ibrahim

6.3 Christina Wyly

6.4 Somak Ghosh

6.5 Azim Premji

7. About WealthInsight

List of Tables

Table 1: HNWI Wealth Band and Group Definitions

Table 2: Key Products through Asset Classes

Table 3: Key Differences between Philanthropy, Angel Investments and Impact Investments

Table 4: Regional Market Analysis and Potential of Impact Investments

Table 5: List of Key Stock Exchanges Launched for Impact Investments

Table 6: Key Impact investment Products in North America

Table 7: Key Impact Investment Products in Europe

Table 8: Key Impact Investment Products in Asia-Pacific

Table 9: Key Impact Investment Products in Latin America

Table 10: Key Impact Investment Products in the Middle East

Table 11: Key Impact Investment Products in Africa

Table 12: Major Impact Investment Fund Managers

Table 13: Major Impact Investment Fund Providers focused on Sustainable Trade Finance

Table 14: Major Impact Investment Fund Providers focused on Sustainable and Clean Energy

Table 15: Major Impact Investment Fund Providers focused on Affordable Housing

Table 16: Mark Zuckerberg – Profile

Table 17: Mo Ibrahim – Profile

Table 18: Christiana Wyly – Profile

Table 19: Somak Ghosh – Profile

Table 20: Azim Premji – Profile

List of Figures

Figure 1: Global Market Size of Impact Investments by AuM in 2014, (US$ Billion)

Figure 2: Global Breakdown of Impact Investments by Sector (%), 2014

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