Impact investing grew significantly over the past three years, results released this month by the Global Impact Investing Network show.
GIIN found that both overall assets under management and capital raised by fund managers increased at a compound annual growth rate of 18% between 2013 and 2015.
Assets increased from $25.4 billion in 2013 to $35.5 billion in 2015, and capital raised grew from $1.7 billion to $2.3 billion.
The report was based on data from 62 impact investors that have completed GIIN’s annual impact investor survey each year from 2014 to 2016, answering questions regarding their activities for the year prior to data collection, plans for the following year and general perceptions of broader market trends and topics.
Approximately 80% of respondents are based in developed markets, with 56% identifying as fund managers and 20% as foundations. Roughly half the sample are market-rate investors — with some slight fluctuations from year-to-year — and the rest were below-market investors.
Respondents committed a total of $7.1 billion to 3,332 deals in 2013, $9.2 billion to 3,726 deals in 2014 and $9.1 billion to 3,096 deals in 2015.
Between 85% and 95% of respondents each year reported that financial performance was at or above their expectations, and 98% said they met or exceeded their impact expectations.
Respondents ranked “business model execution and management risk” as the chief risk to impact investing portfolios considered.