Washington, D.C., April 12, 2019—RockCreek, a leading global investment firm that applies data-driven technology and innovation to sustainable investing, today joined with dozens of major impact investors to sign the Operating Principles for Impact Management—a new market standard for impact investing under which investors seek to generate positive impact for society alongside financial returns.
The Principles, developed by the International Finance Corporation (IFC), the private sector arm of the World Bank Group, aim to bring greater transparency and discipline to the global impact investing market.
RockCreek – which has a long history of managing impact investments for endowments, foundations, sovereign wealth funds, and pension funds – was one of 16 firms worldwide that participated in early consultations with IFC on the Principles and worked closely to help develop them.
The 60 organizations (listed below) adopting the Principles today collectively hold at least $350 billion in assets invested for impact, which they commit to manage in accordance with the Principles. Future investments for impact will also adhere to the Principles. The Principles provide a common market standard for what constitutes an impact investment, addressing concerns about “impact-washing.”
IFC led the development of the Principles, in collaboration with a diverse array of leading asset managers, asset owners, asset allocators, development banks, and financial institutions, following a three-month public stakeholder consultation.
“This is history in the making,” said IFC CEO Philippe Le Houérou. “We believe there is now potential to bring impact investing into mainstream. Our ambitions are very high – we want much more money managed for impact because there’s no time to lose to protect our planet and communities around the world.”
RockCreek Founder and CEO Afsaneh Beschloss said, “This is a huge step forward for catalyzing flows in impact investing, and it offers investors and companies alike a pragmatic, much-needed balance between a rigorous framework and flexibility to implement for investment management firms globally.”
In a new report—Creating Impact: The Promise of Impact Investing—IFC estimates investor appetite for impact investment could today be as much as $26 trillion. This includes $5 trillion in private markets involving private equity, non-sovereign debt, and venture capital, and as much as $21 trillion in publicly traded stocks and bonds.
To fulfill this potential, impact investing will need to offer investors a transparent basis on which they can invest their money to achieve positive measurable outcomes for society in addition to adequate financial returns. The Principles will help create clarity and consistency regarding what constitutes managing investments for impact and bolster confidence in the market.
The Principles reflect best practices across a range of public and private institutions. They integrate impact considerations into all phases of the investment lifecycle: strategy, origination and structuring, portfolio management, exit, and independent verification.
First Adopters of the Operating Principles for Impact Management
- Acumen Capital Partners
- AlphaMundi Group
- AXA Investment Managers
- Baiterek National Managing Holding JSC
- Belgian Investment Company for Developing Countries (BIO)
- Blue like an Orange Sustainable Capital
- BlueOrchard Finance Ltd.
- BNP Paribas Asset Management
- Calvert Impact Capital
- Capria Ventures
- Cardano Development B.V. (ILX fund and TCX)
- CDC Group plc.
- CDP – Cassa Depositi e Prestiti
- Community Investment Management (CIM)
- Cordiant Capital
- Credit Suisse
- DEG – Deutsche Entwicklungs- und Investitionsgesellschaft mbH
- Development Bank of Latin America (CAF)
- European Bank for Reconstruction and Development (EBRD)
- European Development Finance Institutions (EDFI)
- European Investment Bank (EIB)
- FinDev Canada
- Flat World Partners
- FMO – the Netherlands Development Finance Company
- IDB Invest, Member of the Inter-American Development Bank
- IFC Asset Management Company (AMC)
- IFU – Investment Fund for Developing Countries
- Incofin Investment Management
- Investisseurs & Partenaires – I&P
- Islamic Corporation for the Development of the Private Sector, Member of IsDB Group
- Kohlberg Kravis Roberts & Co. L.P.
- LeapFrog Investments
- LGT Impact
- LGT Venture Philanthropy
- MicroVest Capital Management
- Multilateral Investment Guarantee Agency (MIGA)
- Oesterreichische Entwicklungsbank AG (OeEB)
- Overseas Private Investment Corporation (OPIC)
- Partners Group
- Prudential Financial Inc.
- STOA Infra & Energy
- Swiss Infestment Fund for Emerging Markets (SIFEM)
- The Rise Fund
- The Rock Creek Group
- WaterEquity Zurich Insurance Group Ltd.
RockCreek is a leading global investment management firm that applies data-driven technology and innovation to sustainable investing. Its portfolio managers invest in emerging markets and alternatives, and its asset allocation teams invest in multi-asset class portfolios and customized solutions. RockCreek’s client base is made up of sophisticated institutional investors, including endowments, foundations, pension plans, and sovereign funds. The firm is highly focused on the integration of environmental, social, and governance (ESG) factors and sustainable impact across portfolios to generate long-term returns. For more information, visit www.therockcreekgroup.com.
IFC—a sister organization of the World Bank and member of the World Bank Group—is the largest global development institution focused on the private sector in emerging markets. We work with more than 2,000 businesses worldwide, using our capital, expertise, and influence to create markets and opportunities in the toughest areas of the world. In fiscal year 2018, we delivered more than $23 billion in long-term financing for developing countries, leveraging the power of the private sector to end extreme poverty and boost shared prosperity. For more information, visit www.ifc.org