Impact 360 Survey (Blue Earth Capital)

Summary

• 72% of surveyed market participants access the impact space through private equity, followed by 44% in venture capital and 36% in private credit.p.3
• Almost three quarters (73%) of respondents expect impact investing to become a mainstream institutional strategy within the next 10 years.p.3
• Over four out of five respondents (83%) report that the financial returns of their impact investments have met or exceeded expectations.p.7
• The majority of respondent organisations (69%) access impact opportunities through managers based in Europe, compared to 47% in North America.p.6
• Climate action is identified as the impact theme presenting the biggest opportunity, selected by 29% of respondents.p.8
• exact balance on industry regulation is contested, with 46% considering current levels about right and 40% calling for more regulation to reduce impact-washing.p.10

Key insights

1. Private equity is the primary vehicle for entering impact investing, chosen by 72% of respondents.p.3
2. A majority of 73% of respondents expect impact investing to become a mainstream institutional investment strategy within 10 years.p.3
3. One-third (32%) of market participants believe the wider finance community has a poor understanding of the impact sector.p.4
4. European fund managers serve as the main gateway for impact investing, used by 69% of surveyed organisations.p.6
5. An overwhelming 79% of respondents expect impact elements to positively influence business valuations over the next five years.p.7
6. Climate action is rated as the largest opportunity area for impact investors, leading with 29% of respondent interest.p.8
7. Respondents are split on regulation, with 46% satisfied with current levels and 40% advocating for stricter rules to combat impact-washing.p.10