Trends to Watch
Key impact investing trends are emerging as investors continue to deploy capital in innovative ways — and we’re seeing these in real time at ImpactAssets.
Impact-First Investments – Impact-first investments intentionally prioritize social and environmental outcomes, and often leverage flexible capital to accelerate solutions where traditional finance falls short. When such investments accept disproportionate risk or concessionary returns — also known as catalytic capital — they can play a critical role in advancing innovations and reaching underserved communities This is reflected in ImpactAssets’ 2024 investment activity, where more than half of private market impact investments (by count) were catalytic investments, primarily deployed through below-market-rate debt, hybrid instruments that provided flexible capital, and investments into emerging funds.
Nature-Based Solutions – Nature-based solutions harness ecosystems, such as forests, wetlands and oceans, to address the changing climate, biodiversity loss and community resilience. ImpactAssets’ clients are increasingly investing in nature-based solutions, with an emphasis on ocean health. With the ocean economy contributing $3-6T globally and supporting over three billion livelihoods, the impact potential is enormous. ImpactAssets’ investees are advancing sustainable aquaculture, marine conservation, plastic reduction, climate tech innovation and more.
Energy Abundance – Impact investors are increasingly prioritizing investments that improve energy access and affordability for low-income communities. Focusing on energy abundance helps ensure that all households have reliable access to power and can handle extreme weather and grid disruptions. By investing in community-centered solutions such as distributed energy, these investments can reduce energy insecurity, strengthen resilience and address long-standing inequities.
Multi-Donor Funds – Multi-Donor Funds pool contributions from philanthropists and impact investors who are passionate about the same issue areas and who want to invest in similar organizations and causes. By aligning around shared priorities, these funds reduce duplication, spread risk, and enable deeper, more coordinated impact to address root causes and spark systemic change. ImpactAssets has more than 900 donors who have made contributions to 30 Multi-Donor Funds spanning themes such as gender-lens investing, the creative economy and ocean health.
About ImpactAssets
ImpactAssets is an impact investing trailblazer dedicated to changing the trajectory of the planet’s future and improving the lives of all people. As a leading impact investing firm, ImpactAssets offers deep strategic expertise to help its clients define and execute on their impact goals.
Founded in 2010, ImpactAssets increases flows of money to impact investing in partnership with its clients through its impact investment platform, philanthropic solutions, and field-building initiatives, including the IA 50 database of private debt and equity impact fund managers. ImpactAssets has more than $4 billion in assets, working with purpose-driven individuals and their wealth managers, family offices, foundations, and corporations. ImpactAssets is an independent 501(c)(3) organization. Learn more at www.impactassets.org