A Closer Look at Impact Investing

Updated: Dec 17, 2021

The concept of impact investing is not new to the public, and its practice has a rich history. A prevailing view believes that impact investment originated in the United States in the 18th century and ramped up since the 1960s. Based on the 2020 survey by the Global Impact Investing Network (GIIN), the global impact investing market size is $715 billion and is expanding rapidly.

But what exactly is “impact investing”? According to GIIN, impact investments are the investments made with the intention to generate positive, measurable social and environmental impact alongside a financial return. In a more concise term, impact investors aim to invest in a project that would make the world a better place while receiving financial returns.

Usually, classic investing and philanthropy would be viewed as two extremes, and the investing strategies between the two could be considered as impact investing. The below graph indicates the goals and approaches of different types of investments:

Source: UNIDO Knowledge Hub

Why Impact Investing?

One of the primary purposes of impact investing is to solve the existing problems in the world. In the past, we solely rely on philanthropy to be the hero. However, philanthropies have their intrinsic deficiency (often called the "philanthropy paradox") - that donors tend to benefit alongside those they intend to help, and that wealth accumulation tends to precede distribution There are problems in the world that demand capital other than these philanthropies, such as carbon emissions, poverty, healthcare and many more.

According to impact investment researcher and advisor, Rachel Browning, "Only a handful of impact-focused funds have exited their investments, making it difficult to model the return landscape of such investments." Still, impact curious families, family offices and those considering this type of investing for the first time need concrete information to go on. But in fact, based on the result of a survey that is shown below, the performance of impact investing had met most investors’ expectations.

Bridge Point Capital has always been a practitioner of impact investing with a focus on industries that would generate a positive impact to our society such as healthcare and clean energy. We also provide financial advisory to the companies that aim to provide solutions to the existing problems. We firmly believe that impact investing is the ultimate answer to the sustainable development of our society.

About Us:

Bridge Point Capital is a private equity firm based in New York, with a focus on U.S-Asia cross-border investments. We specialize in investing in disruptive mid- to late-stage healthcare companies that can benefit from penetrating the vast, yet unexplored Asian healthcare market. We aim to leverage our expertise in both healthcare and capital markets, to establish a lucrative investment platform for our investors.