Impact Investing Returns

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Community Member

Jul 19, 2023

Do Impact funds generally generate lower returns than others? What is the expectation held by Limited Partners?

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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.

1 answer

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.

Impact Investing Returns

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