Impact Investing Insights: LP-GP Dynamics and Emerging Trends
Impact investing continues to evolve as GPs work hard to develop effective ways to measure impact potential in their portfolios and improve the quality of reporting. This is something that LPs are increasingly focused on as they screen deals to determine the strength of the impact thesis. Returns are still a priority but investors are becoming more forensic in understanding the tangible improvements to society.
Over the last two years, IPEM has made significant strides highlighting many of the key topics and challenges facing impact funds. During the Impact Summit on Day 2 of IPEM Paris 2024, supported by Astanor, Capricorn Investment Group, Indefi and Simpl, delegates heard about what LPs are looking for in impact funds, opportunities in emerging markets, whether or not impact funds were now mainstream, and investing in education and social inclusion.
Some of the key investment themes that LPs are considering range from industrial decarbonization to food supply chain innovation – i.e. alternative protein, regenerative farming – and plastic waste.