Over the last decade, the practice of responsible, sustainable and impact investing has increased in prominence among asset managers and investment funds as more asset owners seek to consider social and environmental effects of their investments and to catalyze solutions to social and environmental issues through their investments. In response, more companies and investment managers have responded to this changing market through their products, services, and practices. As a result of this growing interest, there are now over 100 venture capital and private equity funds in the United States and Canada that seek to deliver better than market or at-market risk-adjusted financial returns alongside clear and measureable impact as a core part of their investment strategies.

For asset owners looking to find these investment options, the Global Impact Investing Network (the GIIN) has emerged as a leading network for impact investors, while the U.S. Social Investment Forum, SRI in the Rockies and the UN PRI convene asset managers and advisors focused on sustainable and responsible investing. The ImPACT, CREO, TONIIC are networks of family offices that bring together asset owners to evaluate funds and direct opportunities. And as more foundations are considering program and mission related investing, the Mission Investors Exchange is a network that connects foundations with one another.  And in emerging markets, general partners of funds can connect with one another through the Emerging Markets Private Equity Association (EMPEA) and the Aspen Network of Development Entreprenuers (ANDE).

But despite the growth of the market, there are no networks that bring together the general partners of these market-rate funds focused on impact investing in the United States and Canada. Existing U.S. networks for general partners such as the National Venture Capital Association, the Small Business Investment Association or the Community Development Venture Capital Association have not adapted to serve the needs of this emerging cohort of general partners and their funds.

The Impact Capital Convening on February 2nd and 3rd 2017 will explore whether this group of investors should form as an independent network, or align itself with an existing organization, to best advance its interests.

At the convening participants will discuss:

• Challenges and opportunities that funds individually confront including things such as market standards for fundraising and limited partner expectations for terms like fee, carry, hurdle rates, etc.; or best practices for the measurement and reporting of impact;
• Policy opportunities to promote the expansion of market rate impact investing through CRA reform, the SBIC program and other policy initiatives;
• Exploration of whether increased collaboration would reduce shared barriers and generate opportunities for co-investment;
• Outline for a research and education agenda to advance the theory and practice of impact investing.

Ultimately, the objective is to determine whether there is sufficient common cause among the fund managers that it warrants either continued opportunities to meet together and/or the securing of resources to support a more permanent network of the funds.