To get an idea of where impact investment might be headed over the next decade, the authors examine where the field has been in three areas that play an outsized role in its goals and practices.
There are some promising innovations in capital markets instruments to serve the liquidity needs of institutional investors. Recent announcements from Germany and Britain about new issuances have helped set the green bond market to grow to $1 trillion. New bonds linked to social outcomes—such as the Ford Foundation’s $1 billion offering—are starting to leverage the growing investor demand for impact in listed securities.
Collateralized loan obligations, securitizations of development finance risk, and special purpose acquisition vehicles (SPACs) can be structured to finance the SDGs and are better suited to the scale of institutional investors.
Volta Finance Limited (LON:VTA) is a closed-ended limited liability company registered in Guernsey. Volta’s investment objectives are to seek to preserve capital across the credit cycle and to provide a stable stream of income to its Shareholders through dividends that it expects to distribute on a quarterly basis.