Impact investing is about using markets and money for social good. Impact investing is built on the belief that private capital can play a powerful role in solving the massive global challenges of our day, and that capital markets should work for good as well as profit. This vision is realized through investments made into companies, organizations, and funds with the intention to generate measurable social and environmental impact alongside a financial return. Every month, PCV will give you a roundup of what’s new in the field, what conversations are taking place, and how you can get involved. Here are some highlights from June: This past month the global efforts to combat climate change suffered a blow in Washington. But follow the money — signals for climate action are in the capital markets, not the Rose Garden. BlackRock Investment Group —with $5 trillion in assets, is bullish on electric cars … Read More
California Initiative 2016 Report
The twelfth annual report examining CalPERS’ California Initiative, a $1 billion private equity, economically targeted investment (ETI). The California Initiative seeks to invest in companies located in traditionally underserved markets, primarily, but not exclusively, located in California. The California Initiative’s primary objective is to generate attractive financial returns, meeting or exceeding private equity benchmarks. As an ancillary benefit, the California Initiative was designed to focus investment in California’s underserved markets and invest in portfolio companies that: Have historically had limited access to institutional equity capital Employ workers who reside in economically disadvantaged areas Provide employment opportunities to women and minority entrepreneurs and managers
CalPERS For California 2016 Report
The seventh annual report documenting the California Public Employees Retirement System’s $27.3 billion of investments in California as of June 30, 2016. The report provides an examination of the broad ancillary benefits of all CalPERS investments in California across the asset classes of public equity, fixed income, private equity, real estate, and infrastructure. CalPERS is the nation’s largest public pension fund, with assets totaling $300 billion as of June 30, 2016. They have a strong track record of long-term returns, and of mobilizing financial capital in new and innovative ways. Ancillary benefits of CalPERS investments described in this report include the creation and support of jobs, infrastructure for communities and commerce, and business expansion and related economic activity.
Economically Targeted Investments by U.S. Pension Funds
U.S.-based public and private pension funds have been making Economically Targeted Investments (ETIs)—investments that generate societal benefits in addition to the investment return—since the 1960s. Over this time, pension funds have sought risk-adjusted returns for their plan’s participants and beneficiaries through investments in worker-friendly affordable housing, in-state businesses, infrastructure, and other projects. The practice of pension funds making ETIs has continued amidst challenges, such as the politicization of some ETIs in the 1980s and 1990s and economic downturns that significantly impacted the U.S. economy. More recently, new types of investments such as those that incorporate environmental social governance (ESG) factors and impact investments have emerged for consideration by pension funds, and the United Nations 17 Sustainable Development Goals are being utilized by some as a guide to investment. To be sure, amidst these developments pension funds must continue to invest prudently and carry out their fundamental obligation of paying their … Read More
What’s New In Impact Investing? May Roundup
Impact investing is about using markets and money for social good. Impact investing is built on the belief that private capital can play a powerful role in solving the massive global challenges of our day, and that capital markets should work for good as well as profit. This vision is realized through investments made into companies, organizations, and funds with the intention to generate measurable social and environmental impact alongside a financial return. Every month, PCV will give you a roundup of what’s new in the field, what conversations are taking place, and how you can get involved. Here are some highlights from May: CDFIs were perhaps the first impact investors in America, and as an industry we’re continuing to pioneer new ways to align investors and capital with social good. This month, after the recent news that our friends at LISC had issued the first-ever CDFI bond, we’re seeing … Read More
Public Policy and Investments in Good Quality Jobs
Despite years of economic growth and a declining unemployment rate, the economy – from the perspective of many Americans – is far from healthy. For decades, wages for everyone but the top quintile of earners have remained stagnant or declined, while Americans’ participation in the workforce is at its lowest level in nearly forty years. At Pacific Community Ventures, we believe that community development financial institutions (CDFIs) and the broader impact investing industry are ideally positioned to tackle this issue by supporting businesses that create high-quality jobs offering decent wages, benefits, career and wealth-building opportunities, and fair and engaging workplaces. Yet America’s jobs problem is too large and complex for individual businesses and investors to confront on their own. Without a concerted effort by government to improve job quality in partnership with businesses, investors, and the social sector, we cannot credibly expect to see changes in the economic trends that … Read More
What’s New In Impact Investing? April Roundup
Impact investing is about using markets and money for social good. Impact investing is built on the belief that private capital can play a powerful role in solving the massive global challenges of our day, and that capital markets should work for good as well as profit. This vision is realized through investments made into companies, organizations, and funds with the intention to generate measurable social and environmental impact alongside a financial return. Every month, PCV will give you a roundup of what’s new in the field, what conversations are taking place, and how you can get involved. Here are some highlights from April: The big news this month was The Ford Foundation’s announcement that it was putting $1 billion dollars of its endowment toward social impact investments. Foundations pioneered impact investing – or mission investing – with their program dollars, but it’s taken the maturation of the field for … Read More
What’s New In Impact Investing? March Roundup
Impact investing is about using markets and money for social good. Impact investing is built on the belief that private capital can play a powerful role in solving the massive global challenges of our day, and that capital markets should work for good as well as profit. This vision is realized through investments made into companies, organizations, and funds with the intention to generate measurable social and environmental impact alongside a financial return. Every month, PCV will give you a roundup of what’s new in the field, what conversations are taking place, and how you can get involved. Here are some highlights from March: Our friends at Mission Investors Exchange have been sponsoring an amazing series of articles in the Stanford Social Innovation Review, looking at foundations’ pioneering work in impact investing, and what those mission-investing leaders see next for the field. Over the last few years, foundations have, more … Read More
What’s New In Impact Investing? February Roundup
Impact investing is about using markets and money for social good. Impact investing is built on the belief that private capital can play a powerful role in solving the massive global challenges of our day, and that capital markets should work for good as well as profit. This vision is realized through investments made into companies, organizations, and funds with the intention to generate measurable social and environmental impact alongside a financial return. Every month, PCV will give you a roundup of what’s new in the field, what conversations are taking place, and how you can get involved. Here are some highlights from February: We’re excited to announce our newest report on how mission investing can create good, working-class jobs across underserved rural areas. Over the past ten years, the Northwest Area Foundation has invested in a total of 20 companies across various sectors through its pioneering Invest Northwest mission … Read More
Invest Northwest Ten Year Performance Review
We are pleased to share our latest report: Invest Northwest: Ten-Year Final Performance Review. For ten years Pacific Community Ventures has worked with the Northwest Area Foundation (NWAF) and the Annie E. Casey Foundation (AECF) to annually evaluate the social performance of Invest Northwest, a place-based mission-related private equity fund. Invest Northwest was created in 2004 with the twin objectives of generating market-rate financial returns and social returns aligned with NWAF’s mission — to support efforts by people, organizations and communities to reduce poverty and achieve sustainable prosperity in the northwestern states of the U.S. As a place-based investment, Invest Northwest was established to support business growth and retention as well as the creation of good jobs for residents within NWAF’s eight-state service region that encompasses Idaho, Iowa, Minnesota, Montana, North Dakota, Oregon, South Dakota, and Washington. Invest Northwest was developed at a time when mission investing was still an emerging … Read More