Long-run Returns to Impact Investing in Emerging Market and Developing Economies
There is interest in impact investing, the idea of deploying capital to obtain both financial and social returns. But private financial returns are only possible if capital markets are not perfectly integrated, so profit opportunities still exist in certain markets. This proposition is put to th...
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World Bank, Washington, DC
2020
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| Online Access: | http://documents.worldbank.org/curated/en/171981598466193496/Long-run-Returns-to-Impact-Investing-in-Emerging-Market-and-Developing-Economies http://hdl.handle.net/10986/34383 |
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okr-10986-343832022-09-20T00:11:27Z Long-run Returns to Impact Investing in Emerging Market and Developing Economies Cole, Shawn Melecky, Martin Molders, Florian Reed, Tristan IMPACT INVESTING PRIVATE EQUITY EMERGING MARKET ECONOMIES VENTURE CAPITAL INTERNATIONAL CAPITAL MARKETS There is interest in impact investing, the idea of deploying capital to obtain both financial and social returns. But private financial returns are only possible if capital markets are not perfectly integrated, so profit opportunities still exist in certain markets. This proposition is put to the test by examining every equity investment made by one of the largest and longest-operating impact investors across 130 emerging market and developing economies. Since 1961 this portfolio has performed comparably to public and private equity in the United States, though it has under-performed since 2010. Investments in larger economies have higher returns, and returns decline as banking systems deepen and countries relax capital controls. These results are consistent with a core thesis of impact investing that some eligible markets do not receive sufficient investment capital. 2020-08-27T14:36:01Z 2020-08-27T14:36:01Z 2020-08 Working Paper http://documents.worldbank.org/curated/en/171981598466193496/Long-run-Returns-to-Impact-Investing-in-Emerging-Market-and-Developing-Economies http://hdl.handle.net/10986/34383 English Policy Research Working Paper;No. 9366 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo World Bank World Bank, Washington, DC Publications & Research Publications & Research :: Policy Research Working Paper |
| repository_type |
Digital Repository |
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Foreign Institution |
| institution |
Digital Repositories |
| building |
World Bank Open Knowledge Repository |
| collection |
World Bank |
| language |
English |
| topic |
IMPACT INVESTING PRIVATE EQUITY EMERGING MARKET ECONOMIES VENTURE CAPITAL INTERNATIONAL CAPITAL MARKETS |
| spellingShingle |
IMPACT INVESTING PRIVATE EQUITY EMERGING MARKET ECONOMIES VENTURE CAPITAL INTERNATIONAL CAPITAL MARKETS Cole, Shawn Melecky, Martin Molders, Florian Reed, Tristan Long-run Returns to Impact Investing in Emerging Market and Developing Economies |
| relation |
Policy Research Working Paper;No. 9366 |
| description |
There is interest in impact investing, the idea of deploying
capital to obtain both financial and social returns. But private
financial returns are only possible if capital markets are
not perfectly integrated, so profit opportunities still exist in
certain markets. This proposition is put to the test by examining
every equity investment made by one of the largest
and longest-operating impact investors across 130 emerging
market and developing economies. Since 1961 this
portfolio has performed comparably to public and private
equity in the United States, though it has under-performed
since 2010. Investments in larger economies have higher
returns, and returns decline as banking systems deepen and
countries relax capital controls. These results are consistent
with a core thesis of impact investing that some eligible
markets do not receive sufficient investment capital. |
| format |
Working Paper |
| author |
Cole, Shawn Melecky, Martin Molders, Florian Reed, Tristan |
| author_facet |
Cole, Shawn Melecky, Martin Molders, Florian Reed, Tristan |
| author_sort |
Cole, Shawn |
| title |
Long-run Returns to Impact Investing in Emerging Market and Developing Economies |
| title_short |
Long-run Returns to Impact Investing in Emerging Market and Developing Economies |
| title_full |
Long-run Returns to Impact Investing in Emerging Market and Developing Economies |
| title_fullStr |
Long-run Returns to Impact Investing in Emerging Market and Developing Economies |
| title_full_unstemmed |
Long-run Returns to Impact Investing in Emerging Market and Developing Economies |
| title_sort |
long-run returns to impact investing in emerging market and developing economies |
| publisher |
World Bank, Washington, DC |
| publishDate |
2020 |
| url |
http://documents.worldbank.org/curated/en/171981598466193496/Long-run-Returns-to-Impact-Investing-in-Emerging-Market-and-Developing-Economies http://hdl.handle.net/10986/34383 |
| _version_ |
1764480789179793408 |