Europe and Asia’s investors show their soft side New legal structures are needed for impact investments to succeed as an asset class. Although it is possible to utilise non-profit or for-profit structures for impact investments, investors – and their counsel – hope that more jurisdictions will consider social enterprise structures to simplify matters. Impact investments involve investing in both for-profit and not-for-profit social enterprises that prioritise their missions over conventional business objectives. But the strategy has blurred the distinction between between for-profit and non-profit companies. Recently we've seen charities invest in for-profit companies, such as Oxfam's investment into Mongolia's Xac Leasing, and private equity firms such as KKR prioritise environmental, social and governance issues.
October 30 2012