Contracts with Benefits

Brief Summary

Katherine Klein and David Musto discuss impact investing, its financial performance, and the significance of contracts in ensuring social benefits.

Key points

• Understanding Impact Investing. Impact investing aims to generate social benefits alongside profits. It's a dual bottom-line approach.
• Research Findings on Financial Performance. Recent research shows that impact funds perform similarly to traditional funds financially.
• The Role of Contracts in Impact Investing. Contracts in impact investing explicitly include social impact goals, ensuring accountability.
• Impact Investing Insights. Initial findings suggest you’re likely making market rate returns in impact investing.
• The Challenge of Measuring Impact. Understanding the actual impact of investments remains a significant challenge.