Investors to scramble for $26trn investment potentials in emerging markets –IFC…  As 60 investors commit over $350bn in assets to impact society

Washington D C, USAI nternational Finance Corporation, IFC, a member of the World Bank Group, yesterday disclosed that investor appetite for impact investment could be as much as $26 trillion.

It also stated that about 60 investors committing over $350 million are adopting the operating principles for impact management that would help emerging markets to achieve strong development impact and financial returns.

The IFC CEO, Philippe Le Houérou at the on-going World Bank/IMF Spring Meeting in Washington DC, USA said : “In a new report—Creating Impact: The Promise of Impact Investing—IFC estimates investor appetite for impact investment could today be as much as $26 trillion. This includes $5 trillion in private markets involving private equity, non-sovereign debt, and venture capital, and as much as $21 trillion in publicly traded stocks and bonds

“To fulfil this potential, impact investing needs to offer investors a transparent basis on which they can invest their money to achieve positive measurable outcomes for society in addition to financial returns. The Principles launched today facilitate this process by creating clarity and consistency regarding what constitutes investments managed for impact to bolster confidence in the market.”

It stated that investors seek to generate positive impact for society alongside financial returns in a disciplined and transparent way, stressing that the principles bring greater transparency, credibility, and discipline to the impact investing market.

The IFC CEO, said :  “The organizations adopting the Principles collectively hold over $350 billion in assets invested for impact, which they commit to manage in accordance with the Principles. Future investments for impact will also adhere to the Principles. The Principles provide a clear common market standard for what constitutes an impact investment, addressing concerns about “impact-washing.” IFC led the development of the Principles, in collaboration with leading asset managers, asset owners, asset allocators, development banks, and financial institutions, including a three-month public stakeholder consultation.

“We believe there is now potential to bring impact investing into the mainstream. Our ambitions are very high – we want much more money managed for impact because there’s no time to lose to deliver on the billions to trillions agenda.”

Houérou noted:  “In a new report—Creating Impact: The Promise of Impact Investing—IFC estimates investor appetite for impact investment could today be as much as $26 trillion. This includes $5 trillion in private markets involving private equity, non-sovereign debt, and venture capital, and as much as $21 trillion in publicly traded stocks and bonds.”