Investors are increasingly finding impact investing as risk-adjusted and return-driven just as any other traditional approach.
Saima Rehman, investment officer, Private Equity & Funds at IFC, said, during the panel discussion at the Asia PE-VC Summit 2021, the firm, at a minimum, invests in GPs that bring environmental, social, and governance (ESG) criteria “to the heart of their operations.”
“What we have found over decades of investing and working with good GPs,” she said, is that the best GPs use ESG and impact investing positively as “a lever for value creation” and “a tool for managing underlying risks.”
IFC, a member of the World Bank, has committed a record $31.5 billion to private companies and financial institutions in developing countries in the fiscal year 2021.