We are thrilled that Vital Capital was highlighted in the Global Impact Investment Network’s flagship report, the “2020 Annual Impact Investor Survey.” The report incorporates data from more respondents than ever before – almost 300 impact investors – focusing on their investment activity, capital allocations, performance, and impact measurement and management.
To mark the 10th edition of the study, this year’s report looks back on the impact investing industry’s significant advancement over the past decade – and it starts with Vital Capital’s 2011 fund launch. The timeline “Notable Commitments Over the Past Decade” on page 20 of the report begins with our successful $350 million investment fundraise. We are proud that our smart, targeted investments have delivered essential development impact to millions of individuals in low and middle-income communities and helped kick-off a decade that has seen so many important developments in impact investing.
The report also features Vital’s insights on how the impact of the COVID-19 pandemic reinforces the need for investments along SDG themes. Though each firm’s contributions are unattributed, you can find our quotes on page 65. In addition, Vital’s data contributed to the survey’s research.
Some key findings from the report:
- Most respondents (57%) indicated that they are ‘unlikely’ to change the volume of capital they plan to commit to impact investments in 2020: This uninspired response from the industry underscores the need for additional funds similar to the Vital Impact Relief Fund.
- Strong performance is motivating investment activity: One critical driver of market growth is the industry’s performance – in both impact and financial terms – over time. 88% of respondents report meeting or exceeding their financial expectations. In terms of impact performance, 99% of respondents noted that they have met or exceeded their expectations since inception.
- “Sophistication of impact measurement and management practice” is cited as one of the greatest areas of progress over the past decade: Impact measurement and management (IMM) practices enable impact investors to demonstrate real results and ensures accountability. IMM practices now reflect greater sophistication and strategic use of tools. As the market matures, much opportunity still exists for greater depth and refinement.
- Interest in key sectors and geographies (excluding outliers): Top sectors to which respondents allocated capital were energy (16%), followed by financial services (excluding microfinance), with 12% of sample AUM. The majority of capital is allocated to developed markets (55%), with the top region of investment being US & Canada (30%). Top asset classes are private debt, comprising 21% of the sample AUM, while public equity accounts for 19%.
- Growth marked by 17% compound annual growth rate (CAGR) among repeat respondents: Among repeat respondents to the GIIN’s 2016 Annual Impact Investor Survey (2015 year-end data) and this year’s survey, aggregate AUM grew from USD $52 billion to $98 billion.
- The current market sizing was calculated to be USD $715 billion based upon assets of the 294 respondent investors from the 2020 Annual Impact Investor Survey.
