Is responsible investing fit for purpose? Sector expert Scott Greenhalgh explores for Beacon…
New commission on impact investing announced.
A commission on how to encourage more individuals to use their private wealth to invest in social enterprises has just been announced.
The project – the Individual Impact Investing Commission (IIIC) – is seeking to develop a better understanding of the barriers individuals with personal wealth face from investing in social impact enterprises. It plans to make recommendations that would encourage and significantly increase social impact investing among this group.
The objective of the IIIC is to stimulate investment into social impact enterprises* by individuals and families as opposed to institutional investors. This will contribute to the development of a wider financing ecosystem to support these enterprises throughout their lifecycle.
The Individual Impact Investing Commission will aim to answer the following questions:
- What level of interest is there among (U)HNW individuals in investing in social impact enterprises versus other types of investment?
- What barriers are there to investing in this way – whether psychological, social, practical, regulatory, or motivational?
- What would facilitate (U)HNWs to increase their impact investment?
- What recommendations are there for government, the social finance sector, business angel networks, fund managers and professional wealth advisors to foster the flow of capital?
Hosted by the Beacon Collaborative in collaboration with Big Society Capital, the Commission will seek to maximise its impact by working alongside other initiatives in the sector, most notably the recently launched Catalytic Capital Commission hosted by the Association of Charitable Foundations. It is envisaged that there will be a direct link between the two projects and that findings and outputs from the Individual Impact Investing Commission will feed into this broader piece of work.
The Commission, which is funded by the Access Foundation for Social Investment through the Connect Fund managed by the Barrow Cadbury Trust, will bring together leading impact investors, practitioners, and experts, to examine research, interrogate industry practice and policy and make practical evidence-based recommendations through a final report.
*social impact enterprises = social and environmental enterprises comprising different legal structures including but not limited to, companies limited by guarantee or by shares, community interest company (CICs), charitable incorporated organisation (CIO).
Membership of the Individual Impact Investing Commission
The chair of Big Society Capital, Sir Harvey McGrath, will chair the Commission and the vice-chair will be the chair of the Beacon Collaborative, Matthew Bowcock. The Commission will include around 12 members with leading representatives from the following groups: (U)HNW individual philanthropists, family offices, angel investing networks, impact investment funds, Big Society Capital, Beacon Collaborative, professional and wealth advisers, individuals with expertise in impact investing.