Impact Investing: The State of Market Institutionalization (ILPA)
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ILPAKey number
85%
Share of total impact AUM held by large allocators (more than $500 million in impact assets) p.10
Summary
- The research covered an interview and survey sample of 42 institutions overseeing nearly $19 trillion in total assets under management and advisement.p.8
- Large allocators, those managing more than $500 million in impact assets, hold 85% of total impact assets under management.p.10
- ABP has committed at least €30 billion to impact investments by 2030.p.10
- The sample was disproportionately European, with 60% headquartered in Europe, compared to 31% in North America and 5% each in Asia and Australia/New Zealand.p.12
- Approximately 90% of respondents mentioned financial data, such as lack of track record, demonstrated exits and DPI, as one of the most significant challenges to making impact investments.p.21
- The average buyout deal size was $849 million in 2024, while the median deal size in VC and growth was approximately $20 million.p.23
- Only seven of the over 1,300 impact funds tracked by New Private Markets are known to be investing in impact secondaries.p.26
Key insights
- Respondents overwhelmingly identified data as the most significant challenge to a fully institutionalized impact investing market.p.20
- The share of first-time funds among impact funds (26%) was nearly double that of traditional funds (15%).p.21
- Roughly 40% of LP respondents discussed the development of a robust impact secondaries market as a key enabler of institutional participation.p.26
- Traditional secondaries funds raised $80.84 billion in the first half of 2025 alone.p.26
- Approximately 60% of interview respondents anchor their impact investing approaches in the GIIN definition.p.27
- Roughly 40% of respondents reflected on a lack of harmonization in guidance, and climate was highlighted as a theme with competing standards.p.28
- The Networks pillar emerged as the strongest of the five pillars of market institutionalization.p.29
- Leadership buy-in was cited by around half of interview respondents as one of the most critical enablers of internal orientation.p.31
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