We’re getting an update on trends, successes and challenges playing out within the impact investing landscape from the Global Impact Investing Network’s (GIIN) annual investor survey.

The update from the field shows that impact investing continues to gain momentum, with more than 13,000 deals made in 2018 by the 266 organizations surveyed and plans to make 15,000 deals this year.

The survey respondents collectively manage $239 billion in impact investing assets, which is estimated to be half of the worldwide impact investing assets under management.

Of the 34 foundations that participated in the global survey, three are CMF members, the Battle Creek Community Foundation, Ford Foundation and W.K. Kellogg Foundation.

The 34 participating foundations reported $643 million in capital invested in 2018 with plans to collectively invest $907 million this year.

“The impact investing industry offers glimmers of an impact-aware future, in the here and now, and we have a lot to be proud of,” Sapna Shah, managing director of GIIN said.

The survey shows that when it comes to assets under management by sector, the top areas for the investors included energy, microfinance, financial services and food, and agriculture.

Additional key findings:

Impact investing continues to grow.

• While tracking a group of survey respondents from four years ago to now, GIIN learned that the group grew their impact investing assets from $37 billion to nearly $69 billion in that time period.

• Nearly a quarter of respondents say they made their first impact investment within the last five years.

• Of those surveyed, respondents say they have seen substantial progress which has helped to grow the industry. This growth includes the availability of research, sophistication of impact measurement and management practice, and availability of financial professionals with relevant skills.

Impact measurement and management is central to investors’ goals and practices.

• Of those surveyed, 80 percent said their staff is motivated by a desire to work for a mission-driven organization.

• Nearly all investors measure and manage their impact and about 60 percent track their investment performance aligned with the United Nations’ Sustainable Development Goals (SDGs).

Impact investors say their performance is in line with financial and impact expectations.

• More than 90 percent of respondents reported investment performance in line or exceeding both their impact and financial expectations.

• Approximately 15 percent said their investments have outperformed their expectations since inception.

 “In this ninth year of the survey, it is heartening to see the continued growth of impact investing, year over year, not just due to new investors entering the market but also because existing investors are increasing their allocation of investment assets to impact,” Jennifer Oertel, CMF’s impact investing expert in residence said.

Oertel highlights that the findings around investment performance are particularly telling given common misconceptions “that impact investors have to sacrifice returns.”

Many impact investors say they are committed to helping grow and develop the industry by sharing best practices, supporting the development of businesses and training financial professionals.

Additionally, about 72 percent of respondents said they “have policies in place to ensure that their impact investing practices promote diversity, equity and inclusion.”

While the industry is continuing to grow and develop, the survey shows that challenges remain, as respondents cited a lack of appropriate capital across the risk-return spectrum and a lack of suitable exit options.

“The challenges reported are similar to what we’re seeing in Michigan and for which CMF is actively seeking solutions,” Oertel said. “Also, as reported by respondents, I think CMF members and others across the state are realizing the power of impact investing to benefit their mission in other ways, such as promoting diversity, equity and inclusion as well as working toward attainment of the SDG’s.”

Want more?

Read GIIN’s annual investor survey.

Connect with CMF’s impact investing resources.

Read Jennifer Oertel’s blog, The A to Z of Impact Investing.