Over ten years of providing impact asset consulting services, Australian Impact Investments (Aii) have facilitated 75 deals that have mobilised $338 million of capital. Managing Director Kylie Charlton contends that the time is now ripe for impact investing in Australia to scale up.
“After ten successful years we are able to dispel some myths about impact investing and take on some persistent challenges,” said Ms Charlton.
“Many conversations about impact investing start with concerns that ‘it sounds good in theory but we don’t want to sacrifice returns’. Our experience over the last ten years shows that you can invest for impact and generate competitive returns.
“We have concrete evidence from Australian investments across multiple asset classes, which show that it’s possible to invest for impact and generate risk-adjusted, market-rate returns.”
Renewable energy investments have generated strong returns for Aii’s clients. A solid example is Infradebt, a specialist infrastructure debt manager. Aii has facilitated nearly $20 million of investment from a range of clients into Infradebt’s Ethical Investment Fund, which supports renewable energy and social infrastructure projects. This fund has returned 6.4% since inception, with a 1-year return to October 2024 of 8.2% (these returns are net of fees).
A range of unique opportunities coordinated by Aii have delivered investors returns upward of 10% while enabling outcomes ranging from quality education for children living with autism, integration of Aboriginal knowledge seamlessly alongside the National curriculum, installation of solar on the Sydney International Convention Centre, and restoring children in out-of-home care to their families.
“For the past decade, Aii has demonstrated unwavering commitment to helping investors navigate the evolving impact investment market. Combining financial and impact expertise, it has been at the forefront of shaping investment strategies, conducting rigorous due diligence, and building portfolios that deliver on both financial returns and positive impact,” says Michael Traill, Executive Director, For-Purpose Investment Partners Chair; Federal Government Social Impact Investing Task Force (2019-2023)
While the impact investment sector has matured and become more well established in the last decade, Charlton says there are three areas that need to be addressed to unlock further capital for impact investing:
1. Tackle green washing and impact washing – robust impact measurement and monitoring practices and standards need to be implemented to enable investors to distinguish between genuine impact and superficial claims. Measurement is key to informing better investment decisions and enabling capital to be directed to where it can make the most difference.
2. Diversification across asset classes – while venture capital plays a crucial role in supporting early-stage impact businesses, it is essential that a range of investment instruments catering to the diverse requirements of investors are activated to drive deeper, system change and enable solutions for the big issues of climate change and social inequality.
3. Wealth advisors and institutional investors need to embrace impact investing – with the growing body of performance data now available, citing concerns about performance and complexity is unacceptable. Wealth advisers and institutions, such as endowments and superannuation funds, need to lean in to navigating compelling opportunities that allow them to better serve their clients, members and broader stakeholders.
“Our track record over the last ten years shows that financial goals can be achieved simultaneously with social and environmental goals. Together with investors, we are transforming how capital is allocated to benefit people and the planet,” concluded Ms Charlton.
DOWNLOAD REPORT: Impact Report 2024: Celebrating ten years of mobilising capital for a better tomorrow
Key Facts:
Over ten years Aii has facilitated 75 deals that have mobilised $338million.
Infradebt's Ethical Investment Fund has returned 6.4% since inception with a 1-year return of 8.2% to October 2024.
Three areas need to be adressed to unlock capital for impact investing:
1) Tackle green washing;
2) Diversification across asset classes;
3) Wealth Advisors and Institutional investors need to overcome hesitation and embrace impact investing.
About us:
Australian Impact Investments (Aii) was founded in December 2014 as Australia’s first dedicated impact asset consultant. We exist to mobilise capital for a better tomorrow, creating positive social and environmental impact alongside financial value. We believe that every investment has an impact and that every dollar of an investment portfolio can be mobilised for a positive impact.
Contact details:
Carolin Wenzel ph: 0417 668 957