What exactly is impact investing?
Traditionally, there are three levels of investing in the world today, Capital Investing, Impact Investing, and Philanthropy. With Capital Investing, private equity and/or various other private and public investment funds in the world engage only in projects that would provide an attractive return on investment for their clients regardless of whether or not they generate a positive social and/or environmental impact. This means that only risk in the financial instrument is considered and what specifically the client’s funds are promoting are not considered as an important factor.
With Impact investing, investments made into NGOs, intergovernmental organizations (“IGOs”), educational institutions, socially-responsible businesses, and other entities have the intention of not only providing a financial return to investors, but most importantly generating a measurable, beneficial social or environmental impact.
Finally, Philanthropy seeks to invest capital that will generate positive social and/or environmental impact for society but with no expectation whatsoever on any financial returns. These entities exist solely to provide measurable impact to our planet and population in order to advance and be able to provide the next generation with a better situation then the present day.
With Earth’s rapidly increasing populations, and the modern day problems that exist in our world, Interlumin is one of the few impact investing funds that strives to not only find prudent and attractive investments while mitigating risk, but most importantly investments and projects that will help address global issues that are affecting our planet and our population. With one project at a time, we continue to help build our future for our children.