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Fund Economics
Impact Investing

Impact Investing Returns

Asked by:
Community Member
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Jul 19, 2023
Do Impact funds generally generate lower returns than others?  What is the expectation held by Limited Partners? 
1 answer
1
Mike Suprovici
Accepted Answer
Jul 19, 2023
There are lots of funds with an Impact thesis that are over-performing while others under perform. They follow a Pareto distribution for returns just like all other funds.
Thank you Mike, from what I have read that sounds about right with the key variation being those that deliberately place financial returns lower on their priority list.  I found this article interesting: 
https://impactalpha.com/do-impact-venture-capital-funds-outperform-traditional-vc-yes-no-and-maybe/#:~:text=Using%20the%20latest%20Cambridge%20Associates,a%20bottom%20quartile%20of%201%25.
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Community Member
Jul 21, 2023 11:39pm
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