The INSEAD Entrepreneurship Forum (IEF) 2013 -- "Impact Investing: Creating an Industry from Innovations" May 23, 2013 (Fontainebleau campus)

Over the past several years, we have seen the growth of a new sector – Impact Investing.  Beginning with a handful of people with a vision to combine social and environmental return with financial return, the sector is now believed to be at a tipping point – on the cusp of being a viable industry much like venture capital grew to become an asset class 30 years ago.  Signs that this sector is thriving are plentiful: Whereas just a few years ago, there were only a few seminal market reports on impact investing such as those by the Monitor Institute (FN1) and Bridges Ventures (FN2), there are now dozens of reports summarizing the industry (FN3) citing case studies and trends, and giving projections. Whereas in the not so distant past there were only a few registered impact investing firms, there are now almost 200 globally.(FN4) And whereas in 2009 the estimated market size for these types of investments was $50billion, (FN5) there is now an estimated $400 billion to $1 trillion in capital to spend. (FN6)

The past years have not only seen growth of the sector in general, but also have seen the emergence of innovative mechanisms to apply capital for social and environmental purposes, aligning risk and reward in ways that benefit society.  From the innovative Social Impact Bond, now replicating across the globe, to creative means of accelerating social enterprises such as the LGT iCats Fellowship, and from social stock exchanges being launched in London and Asia to market-building social investment banks like Big Society Capital – the number of innovations and new institutions to channel investment capital to achieving social good is impressive.

So what is next? We have surpassed the stage of “uncoordinated innovation” and “market building.” (FN7) We are now on to the stage of “industry building.”(FN8)  How do we get to a point where there is a recognized lexicon, governing bodies, a supportive regulatory environment, reliable measurement tools, viable funds, and widely accepted financial instruments etc.?  These are the questions with which sector players are currently grappling.

At the 2013 INSEAD Entrepreneurship Forum, we will explore these questions. We will look at Impact Investing from the perspective of creating an industry from the innovative efforts of the early pioneers. From the perspective of key players – funds, intermediaries, limited partners – we will explore challenges, gaps in the ecosystem, and ways of achieving buy-in from all players.  We will also take into account key aspects of the sector – the investment lifecycle, assessment tools, and the potential impact of enterprises.  How do we work together to achieve efficiencies? Further, we will take a look at how the development of the Impact Investing sector compares with the development of the venture capital and private equity sectors. Can we draw parallels and predict future trends and pitfalls?

With renowned market leaders in this space, with the participation of players from the mainstream investing space, with the energy of INSEAD students, alumni and faculty, this year’s IEF on Creating an Impact Investing Industry promises to be stimulating and fruitful. We welcome you to attend and be part of the exciting process of developing an investment industry that serves society’s most critical needs.

Confirmed Speakers Include:

Wolfgang Hafenmayer, LGT Venture Philanthropy Eric Archambeau, Wellington Partners Marc Flammang, Bank Degroof

Jean-Philippe de Schrevel, Bamboo Finance Anna-Marie Harling, EVPA

Panel Discussions:

- Funds: How do you manage fund viability and attract investors?

- Intermediaries: Who is doing what? Where?

- Limited Partners: Why should you invest in this new sector and how to select the best opportunities?

- Impact: How do you manage the impact goal throughout the investment process?

- Financing: What is the optimum financing lifecycle for impact initiatives and what new instruments do we need?

  

Also, please note that the INSEAD Private Equity Conference will take place the day after the IEF on Friday, May 24th and we are including a combined registration option In addition, it is a reunion weekend, and the Summer Ball will take place on Saturday May 25th.   So, there are many reasons to come to INSEAD, re-connect with friends, meet alumni, and network with new faces. 

The IEF is organized and sponsored by the Rudolf and Valeria Maag INSEAD Centre for Entrepreneurship and the INSEAD Social Entrepreneurship Initiative. 

For questions about the event, sponsorship opportunities, and to suggest speakers, please contact Christine Driscoll Goulay, Associate Director of the INSEAD Social Entrepreneurship Initiative.

For additional information, please go to our web site. 

References:

(1) Freireich, J. and Fulton, K. (2009) Investing For Social & Environmental Impact, A Design for Catalyzing an Emerging Industry, Monitor Institute.

(2) Pun Palandjian, Tracy. (2010) Investing for Impact: Case Studies Across Asset Classes, Bridges Ventures and The Parthenon Group.

(3) See http://www.bigsocietycapital.com/research.

(4) Impact Report (2010) Aspen Network of Development Entrepreneurs.

(5) See Monitor report.

(6) O’Donohoe, N., Leijonhufvud, C., Saltuk, Y., Bugg-Levine, A. and Brandenburg, M. (2010) Impact Investments: An Emerging Asset Class, JP Morgan.

(7) See Monitor report.

(8) Harji, K, and Jackson E. T. (2012) Accelerating Impact: Achievements, Challenges and What's Next in Building the Impact Investing Industry, Rockefeller Foundation.