TPG, KKR, Apollo & Co. moving into Impact Investing
TPG Growth has set up The Rise Fund (http://therisefund.com/), a PE/Growth Equity style social impact fund of $2bn, a year ago or so. In recent weeks there were news that KKR has registered for a Global Impact Fund and in 2016 Apollo has teamed up with the IFC, the private sector arm of the World Bank to create a $1bn Credit fund targeting distressed assets in Emerging Markets.
I was wondering if someone has some from PE has some view about whether this is trend or does even has insight from the groups mentioned?
IMO this might be really great new assets class and exiting sector to work in, given you could do really well not only for yourself but also for the Greater Good.
The IFC / Apollo fund isn't "Impact Investing" - This fund is part of IFC AMC, the IFC's PE arm.
"Impact investing" in when you invest in socially responsible businesses, e.g. investing in a bank that only lends to women entrepreneurs in Ghana.
IFC is a development institution - basically invests in sound businesses within Emerging Markets for a commercial return, but the investment ends up having a development impact since any foreign direct investment helps grow an economy. This is the same as Abraaj Group.
Lot of people mistake "impact investing" with emerging markets private equity - completely different investing strat.
The IFC does however have a separate arm that does the social / impact investing.
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