Community Development Innovation Review

December 2011

"Impact Investing": Theory, Meet Practice


The loud buzz of excitement about Impact Investing is cause for concern, but not only because the enthusiasm is ahead of the practice. The practice of so-called “impact investing” lacks clarity of purpose, definition, and results. The often-referenced J.P. Morgan research report, Impact Investments: An Emerging Asset Class, suggests that the potential market for “impact investing” is “vast.” I disagree.