Nearly $200 million in commitments by a coalition of foundations will help drive $1.5 billion toward impact investing as the group today also issued policy recommendations to incentivize impact investing.
The U.S. National Advisory Board (NAB) on Impact Investing released its policy recommendations as part of a White House roundtable this morning. The White House announced more than 20 new commitments from “investment firms, foundations and family offices that will drive more than $1.5 billion into impact investments that tackle pressing problems at the national and global level over the next five years.” A quartet of NAB members also committed $184 million:
Prudential Financial committed to building a $1-billion impact investing portfolio by 2020 to eliminate barriers to in financial and social mobility while Capricorn Investment Group will deploy $100 million over three years in sustainable real assets, including renewable energy and energy efficiency. The McKnight Foundation and Rockefeller Brothers Fund will dedicate 10 percent of endowment assets, about $200 million and $84 million, respectively, to impact investing.
The Center for Advancement of Social Enterprise (CASE) at the Fuqua School of Management at Duke University will track the progress of today’s commitments and make the information publicly available.
“Impact investing uses the power of markets to unleash private capital for public good,” Matt Bannick, co-chair of the US NAB and managing partner at Omidyar Network, said. “Done well, it can scale sustainable solutions to some of our toughest social challenges, such as affordable housing, clean energy, quality education and workforce development,” he said. The NAB on Impact Investing has “come together to offer a policy framework that can help catalyze the market and transform millions of lives in a positive way.”
The organization’s report, “Private Capital, Public Good: How Smart Federal Policy Can Galvanize Impact Investing – and Why it’s Urgent,” can be found online at www.NABimpactinvesting.org. The report offers policy recommendations in the short-term and supports policy ideas to encourage impact investing in the long-term:
“Innovative strategies by government can unlock new sources of capital and significantly advance the impact investing sector,” Tracy Palandjian, co-chair of the US NAB and CEO of Social Finance US in Boston, Mass., said. The report, she said, articulates strategies — most of which are budget-neutral — and provides a “roadmap to a more enabling policy environment at the federal, state and local levels.”
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