Generating Returns through Development Finance 2014: Impact Investment Report
This is Finance in Motion’s first Impact Investment Report and it coincides with the 5th anniversary of our foundation. This report provides an overview of the market for impact investments and highlights the different aspects of impact investments made by Finance in Motion. It highlights the achievements of FIM’s impact funds including European Fund for Southeast Europe, Green for Growth Fund, the SANAD fund for MSME, and eco.business.Impact investments can be made in both emerging and developed markets. Finance in Motion has deliberately chosen to specialize in impact investments in emerging markets, i. e. in the field of development finance. Investments in emerging markets differ fundamentally from those in developed markets with regard to their political, legal and economic risk profiles, but also in terms of investee profiles. The risk levels are inherently higher, which increases investor reticence in this space. Compounding the development challenge is the fact that these markets suffer from persistent lack of the long-term capital crucial to investments and development.