“Impact investing” is a dreamy amalgam of financial and social goals, promising an acceptable rate of return with the satisfaction of also attempting to save the world.
Coined in 2007 by the Rockefeller Foundation shortly before the financial crisis, it’s still relevant nearly a decade later. It mostly attracts wealthy people who prefer to promote social enterprises that can make a difference rather than simply donating their money.
“The younger heirs of large fortunes, in particular, want to contribute to development objectives formulated by the World Bank,” said Thomas Rüschen, chief executive of the Deutsche Oppenheim Family Office, which specializes in wealth management and is responsible for more than €10 billion in the sector. “Issues such as the exclusion of investments in weapons, nuclear energy or alcohol have long been standard, but now it’s also about actively financing positive examples.”