Impact Engine Selected to the ImpactAssets 50™ 2023 Impact Fund List for Its Commitment to Generating Positive Social, Environmental and Financial Impact
The 2023 edition of IA 50 features 163 fund managers, $122 billion in assets under management, and a record number of private impact fund managers delivering social and environmental impact
March 24, 2023 — Impact Engine, an independent, women-led and employee-owned institutional investor managing venture capital and private equity strategies, announced today that it was selected for ImpactAssets’ 50™ 2023 (IA 50), a free publicly available, searchable database of impact investment fund managers for impact investors, family offices, corporations, foundations and institutional investors.
Impact Engine has been featured in this annual showcase of impact investment fund managers for five years in a row for its work investing in companies that drive scalable solutions to improve economic opportunity, environmental sustainability and health equity.
“Impact Engine is honored to be included in the IA50 for a fifth consecutive year," said Jessica Droste Yagan, CEO of Impact Engine. "I am encouraged by this year’s record-breaking list of impressive fund managers which proves that our industry is continuing to grow and thrive. The demand for innovative impact investing solutions to drive systems change and generate market rate returns has never been stronger. We are proud to be listed alongside our peers on this prestigious list.”
In its twelfth year, the IA 50 continues to raise awareness of impact fund managers across impact areas, maturity, and geography, serving as a basis for deepening understanding of the field.
The IA 50 breaks out managers into three categories, including the core IA 50 list, IA 50 Emerging Impact Managers list and IA 50 Emeritus Impact Managers list. Across all three categories, a record 163 impact fund managers were included totaling $122.48 billion in assets, invested across a range of asset classes and impact themes.
“This year’s IA 50 showcase is a watershed, as the industry continues to allocate more investable assets into social and environmental solutions with both time-tested strategies and creative, new approaches,” said Jed Emerson, ImpactAssets Senior Fellow, IA 50 Review Committee Chair and Chief Impact Officer at AlTi Global. “Established funds continue to impress, while new funds are bringing fresh approaches and insights that move the needle in critical areas through impact investing.”
Some takeaways from this year’s IA 50 include:
Maturing Industry: While many investors see impact investing as the “next new thing,” this year’s IA 50 highlights the long roots and deep experience of an industry focused on making measurable, beneficial social or environmental impact alongside a financial return. More than four in ten (43%) IA 50 2023 fund managers have been managing assets for more than 10 years, and nine fund managers have been selected in all 12 IA 50 showcases.
Growth in Billion Dollar Funds: As impact investing continues its rapid ascension—the Global Impact Investing Network estimates the global impact investing market at $1.16 trillion—the IA 50 has seen a steady increase in the number of billion dollar funds in its ranks. This year, 18 managers with assets exceeding $1 billion were selected, up from 15 in 2022, while an additional 11 had assets under management between $500 million and $1 billion, up from ten in 2022.
Investment Themes and SDGs: A quarter (25%) of IA 50 managers across all three lists focused on clean technology, alternative energy, and climate change, making it the top impact theme. Microfinance, low-income financial services, and micro-insurance (12%) comprised the second-largest impact focus. The most represented UN Sustainable Development Goals cited by fund managers included Decent Work and Economic Growth (20%), Climate Action (17%), No Poverty (12%) and Reduced Inequality (11%).
Increased Diversity & Representation: IA 50 fund managers embrace diversity in contrast to the asset management industry as a whole—asset managers who are women, Black, Indigenous or People of Color manage just 1.4 percent of $82.2 trillion in U.S. assets. Nearly half (48%) of fund managers reported their investment teams are 50% or more People of Color; 43% reported investment teams with 50% or more women. Similarly, 37% of fund managers reported their senior management is 50% or more women, while 35% said senior management is 50% or more People of Color.
Aligning Incentives with Impact: IA 50 managers are finding new ways to commit to impact. This year, 19% of core IA 50 managers, 17% of Emerging Impact Managers and 10% of Emeritus Managers said they tie fund compensation structure to achieving impact. A total of 17% said they have had their impact reporting verified by a third party.
Private Equity is the Largest Asset Class: Focused on deep impact in private markets, 60% of IA 50 fund managers are primarily investing in private equity, while 32% are primarily invested in private debt. Early Stage Venture Capital in Developed Markets is the most popular category, representing 12% of all funds.
Impact Doesn't Mean Financial Sacrifice: A total of 76% of IA 50 managers target market rates or above market rates of return, and 98% reported delivering either in line or above their initial target returns.
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About Impact Engine
Impact Engine is a women-led and employee-owned institutional investment firm that has been working to build the impact ecosystem since 2012 through investments that deliver superior risk-adjusted returns and deep impact outcomes. Based in Chicago, we invest exclusively in funds and companies that are driving positive impact in economic opportunity, environmental sustainability, and health equity. We provide investment capital along all stages of the life cycle of an enterprise, from early-stage venture to private equity, investing directly in technology companies, through co-investments with our GP partners, and in funds across this spectrum. Our multi-faceted investment approach ensures that we operate at the center of the impact innovation ecosystem, giving us unique access to differentiated, high-quality deal flow as well as comprehensive knowledge of the market. To learn more, please visit www.theimpactengine.com.
About the ImpactAssets 50™
The IA 50 is the first publicly available database that provides a gateway into the world of impact investing for donors and/or investors and their financial advisors, offering an easy way to identify experienced impact investment firms and explore the landscape of potential investment opportunities. The IA 50 is intended to illustrate the breadth of impact investment fund managers operating today, though it is not a comprehensive list. Firms have been selected to demonstrate a wide range of impact investing activities across geographies, sectors and asset classes.
The IA 50 is not an index or investable platform and does not constitute an offering or solicitation to buy or sell securities or a private placement, or recommend specific products. Nor is this an endorsement of any of the listed fund managers. It is not a replacement for due diligence. To be considered for the IA 50 2023, fund managers needed to have at least $25 million in assets under management, more than three years of experience as a firm with impact investing, documented social and/or environmental impact and be available for US investment. Additional details on the selection process are available here.
The IA 50 Emerging Impact Managers list is intended to spotlight newer fund managers to watch that demonstrate potential to create meaningful impact. Criteria such as minimum track record or minimum assets under management may not be applicable.
The IA 50 Emeritus Impact Managers list illuminates impact fund managers who have achieved consistent recognition on the IA 50.
About ImpactAssets
ImpactAssets is an impact investing trailblazer, dedicated to changing the trajectory of our planet’s future and improving the lives of all people. As a leading impact investing firm, we offer deep strategic expertise to help our clients define and execute on their impact goals. Founded in 2010, ImpactAssets increases flows of money to impact investing in partnership with our clients through our impact investment platform and field-building initiatives, including the IA 50 database of private debt and equity impact fund managers. ImpactAssets has more than $2 billion in assets in 1,700 donor advised fund accounts, working with purpose-driven individuals and their wealth managers, family offices, foundations and corporations. ImpactAssets is an independent 501(c)(3) organization.
For more information, please contact:
Katy Wilner
Confluence Partners
424-207-7332
Impact Engine has not compensated any party for any endorsement or rating shared or referenced herein, and Impact Engine is not aware of any material conflicts of interest arising from any endorsement or rating.