Times of great crisis can be times of great opportunity. At the beginning of 2012, there is no end in sight for the economic malaise and fiscal crisis that is gripping many parts of the developed world. Global growth is slowing, even in emerging economic powerhouses like India, billions of people remain trapped in poverty. As politicians debate the best way to reform the financial system to prevent future collapses, protestors around the world are questioning the moral foundations of the capitalist system itself. Despite the crisis, shifting attitudes, new technologies and the promise shown by the microfinance revolution have led to new opportunities for market-based innovations to serve the global poor. These are being pioneered by ambitious entrepreneurs who are taking great risks for little potential financial reward, but for tremendous potential social value. Such ideas have elicited a rush to the new field of ‘impact investing'. Hundreds of funds have been set up in just a few years and billions of dollars are to be invested in the next year alone. But the field is young and doubts are creeping in as many investors report that they are struggling to find good opportunities in which to invest for impact. Why is that? And can impact investors take the pioneers of ‘the next microfinance revolution' all the way from idea to scale? These are important questions, not just for these new investors but for the private philanthropists and aid donors who have been working on these issues for decades. If market-based solutions hold real promise for impact, how should funders in development engage to catalyze its full potential? If impact investing capital is the key to scaling these solutions, what is the role of philanthropy?

Executive Summary  Our third annual survey on the impact investment market sheds light on this nascent and growing market by collecting data on investors' expectations and experiences in 2012, as well as their plans for 2013.  Respondents report that they committed USD 8bn to impact investments in 2012, and that they plan to commit USD 9bn in 2013.  Most respondents report that their portfolios' financial and impact performance are in line with their expectations, with nearly two-thirds of the sample targeting market rate financial returns on their impact investments.  Ninety-six percent of respondents measure their social and/or environmental impact, and four out of five fund managers highlight the importance of impact measurement for raising capital.  While respondents believe the market continues to be challenged by a lack of appropriate capital across the risk/return spectrum and a shortage of high quality investment opportunities, they indicate progress is being made evenly across these and other indicators of market growth.

Contents What is Impact Investment?.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 Executive Summary.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4 The Impact Investment Sector.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6 Main Findings and Conclusions.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10 Case Studies and the Asset Allocation Framework.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14 Financial First Cash Shorebank Deposit Program.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17 senior debt BlueOrchard . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18 Mezzanine/Quasi Equity Instruments Triodos Investment Management.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19 Public Equities Generation Investment Management . . . . . . . . . . 20 Venture Capital Bridges Ventures CDV Funds. . . . . . . . . . . . . . . . . . 21 Private Equity ProCredit Holding.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22 Real Estate JP Morgan Urban Renaissance Property Fund.. . . . . 23 other real assets Lyme Northern Forest Fund.. . . . . . . . . . . . . . . . 24 absolute return (hedge funds) BelAir SA Fund. . . . . . . . . . . . . . . 25 impact first Cash Charity Bank.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 26 senior debt Root Capital .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 27 quasi-equity instruments Bridges Ventures Social Entrepreneurs Fund.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 28 Venture Capital Aavishkaar.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 29 Private Equity Acumen Fund.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 30 real estate Ignia.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 31 other real assets Pico Bonito.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 32 Layered Structures.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 33 International Finance Facility for Immunisation (IFFIm).. . . . . . . . . . 34 The New York City Acquisition Fund.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 35 Acknowledgements.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 36 Appendix.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 37

Dans un monde où le secteur financier est à nouveau malmené et où les valeurs bancaires manquent de stabilité - c'est le moins que l'on puisse dire -, pourquoi ne pas s'intéresser à une autre finance qualifiée d'alternative, la finance islamique.