Seminar 217, Risk Management: Impact Investing

Seminar | February 14 | 11 a.m.-1 p.m. | 639 Evans Hall

 Speaker: Adair Morse, UC Berkeley

 Center for Risk Management Research

Abstract:
We study investments in impact funds, defined as venture capital or growth equity funds with dual objectives of generating financial returns and positive externalities. Being an impact fund elevates a fund’s marginal investment rate by 14.1% relative to a traditional VC fund, even more for funds focused on environmental, poverty, and minority/women issues. Europeans and UNPRI signatories have sharply higher demand for impact. Three investor attributes – household-backed capital, mission-oriented investors, and investors facing political/regulatory pressure to invest in impact – account for the higher impact demand. In contrast, legal restrictions against impact (e.g., ERISA) hinder 25% of total demand.

 jschellenberg@berkeley.edu