‘Get your feet wet!’

What do you have to keep in mind when you’re going into impact investment? During a masterclass on the Pymwymic Impact Days in Amsterdam, wealth holders and investors heard all about it. “Impact investment? Invest in a specific object that gives positive impact and financial return.’” The Swiss social impact expert Julia Balandina is in lead of a Masterclass for wealth holders and investors about her knowhow.

In the Grand Hotel in Amsterdam a lot of investors came together Tuesday 3rd of April for the Pymwymic Impact Days (put capital to use for good and invest money with meaning). About fifty investors and wealth managers follow Baladina with interest. “Positive impact means a good influence on the environment and social matters.” She mentioned an example about a rural community in the Third World where poor people make money with solar lamps. Normally enterprises want to maximize their profit, but with impact investing sometimes social impact is the main goal. Or financial return with next to it social impact as an important result.

The motivations for impact investments for private investors are:

  • Philanthropic; to be responsible and empower people in a more effective way than by giving them money.
  • Financial; to maintain or increase wealth.
  • Personal; fulfillment, having fun, to be proud and to educate.

Impact Investors have to keep a few things in mind, Balandina says:

  • Set up a strategy
  • Focus on a branche like climate solutions or for example a country
  • Results have to be measurable
  • Do you want to be in charge of the project yourself or do you want a manager to take care?
  • It can take a long time before you see (financial) results
  • Impact investment is still in its early days so get your feet wet!

And last but not least: Not everything you touch as an impact investor turns into gold.

This post was written by Jolanda Breure of The Social Reporters