Most experts expect that impact investing will continue to follow a growth trajectory for the foreseeable future as more new wealth recipients opt to invest their assets for impact. In the United States alone, it is estimated that impact investing now represents one in every three investment dollars, contributing to a worldwide impact investing market of $1.2 trillion.
What must continue to scale synchronously with impact investing is the industry's adoption of proper impact measurement & management (IMM) principles. As a result of a number of global trends, impact measurement will no longer be a "nice to have;'' it will be required to compete in an increasingly crowded and evolving impact investing market.
In this competition, the winners will emerge as investors who have determined a thoughtful and thorough approach to impact measurement that provides transparency to Limited Partners (LPs), creates value for portfolio companies, and benefits the sector more broadly with learnings and insights.
"Some people think proving impact must be kind of simple, but it’s not. If you’re going to make an intentional effort to create a specific change, it takes a thoughtful strategy."
— Will Morgan, Head of Impact at Sonen Capital LLC