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Achieving impact for impact investing - A road map for developed countries

Brand new study by Ashoka, McKinsey and FASE provides harsh reality check but also fresh perspective: hybrid social finance can be key to unlock necessary capital to scale social enterprises.

Only €70m went into impact investments in Germany so far. This is just a small fraction of the SRI (Socially Responsible Investments) market and an even smaller one of the entire assets available for investment. So how can social enterprises find the necessary capital to scale? Should they compromise on social impact for the sake of more financial return? Or surrender to reality, stay small and reach only a handful of beneficiaries? A recent study by FASE, Ashoka and McKinsey not only shares its reality check but also a promise: Hybrid Social Finance can be the key to unlock impact investments on a much larger scale. The hybrid principle: syndicating different types of capital sources – from grant makers and donors to impact investors and public bodies – and combining them according to their needs in terms of risk, impact and return. The effect: social enterprises receive enough funding to develop and scale their business models. In other words: The impact investing market can finally take off and gain speed. The entire study with a detailed roadmap and recommendations how to develop a functioning ecosystem for social finance can be found here.

01 Jul 2016