The Italian impact investing market grows from 46 to 109 million in 4 years

According to FSVGDA’s Impact Investing Report, the capital available for impact investing in Italy has more than doubled (+137%), from $56 million (€46 million) to $133 million (€109 million), while the amount invested annually reached $15.9 million (€13 million) in 2020 compared to $7.9 million (€6.5 million) in 2017 (+100%; CAGR +26%); cumulatively over the years $50.7 million (€41.5 million) were invested.

The growth of the Italian market in 2020 compared to the previous year is significant: the active operators have increased from 4 to 6 (+50%) while the available capital (commitment) has increased by $50 million (€41million), from $83 million (€68 million) in 2019 to $133 million (€109 million) in 2020 (+60%).

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The growth of the impact investing market (in its broadest sense) at the global level is continuing at a high pace

That is testified by the data reported by the Impact Investor Survey 2020 published by GIIN, the Global Impact Investing Network which includes asset managers, advisory firms, and investors whose portfolios are managed according to impact logics, which show that at the global level the trend is constantly growing: about $715 billion is the estimated size of impact finance.

Also in Italy, the impact investing sector has been growing since 2013 and currently counts a growing number of active funds in the market.

According to data from the latest Social Impact 2019 – conducted by Tiresia – in the two-year period 2018-2019, the impact finance sector, which within it also includes impact investing, reached a total volume of $9.8 billion (€8 billion) in Italy, of which €2 billion in the form of assets managed by equity players. The research has identified about 101 players, analyzing a total of 58 – 38 operators on the supply side of capital (not all of them “strictly impact”) and 20 investors.

The impact capital deployed from 2006 to 2018 is approximately $9.8 billion (€8 billion)

Total equity investments made by respondents since entering the industry is $1.54 billion (€1.26 billion) (15.7% of total deployments). Total funding provided by respondents in the form of credit to social impact organizations is $8.3 billion (€6.77 billion) (84.3% of total lending). In 2019, on the other hand, the total assets managed by equity operators is $2.22 billion (€1.82 billion), with a possible growth margin of 19% for next year.

With respect to the areas of social impact, among the objectives of investments and financing, classified according to the 17 UN SDGs, prevails No. 8 “Good employment and economic growth” (73.7% of operators) followed by No. 9 “Enterprises, innovation and infrastructure” (65.8%).

Among the players in the Italian market, the Foundation has invested a total of $7.3 million (€6 million) in 17 initiatives: 2.5 in 4 impact investing funds and 3.5 in 8 companies and 5 startups that have successfully completed the empowerment and impact investment readiness courses offered as part of the Get it! The portfolio of direct investments in companies and startups is very heterogeneous and divided between the cultural sector (55%), social sector (30%), and environmental sector (15%).

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(Featured image by nattanan23 via Pixabay)

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First published in Impact, a third-party contributor translated and adapted the article from the original. In case of discrepancy, the original will prevail.

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