Social Financing
Impact investments with social benefits, allowing investors to generate both financial returns and positive social outcomes by funding initiatives that address pressing societal challenges. This dual-purpose approach helps create systemic change while building sustainable investment portfolios.
Dual Returns
Generate financial profit alongside measurable positive social impact
Community Focus
Support projects addressing critical needs in underserved communities
Impact Tracking
Transparent measurement and reporting of social outcome metrics
Key Features
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Dual returns: financial performance and measurable social impact
Investments structured to deliver both monetary value and tangible improvements in social conditions such as poverty reduction, increased access to education, healthcare, or financial services.
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Investment in underserved markets with high growth potential
Access to emerging opportunities in underbanked communities and developing markets that often deliver stronger growth than saturated mainstream markets, providing both impact and potential upside.
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Portfolio diversification with reduced correlation to traditional markets
Social investments often respond to different drivers than conventional markets, providing diversification benefits and potentially reducing overall portfolio volatility during market downturns.
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Transparent impact measurement and reporting standards
Rigorous frameworks for evaluating, measuring, and reporting social outcomes ensure accountability and demonstrate the tangible difference your investment makes in communities.
Potential Returns
Social financing aims to deliver market-competitive financial returns while creating positive social outcomes. Investments range from market-rate returns to concessionary returns depending on impact goals and investor preferences.
Return Drivers:
- Business model sustainability of funded enterprises
- Market development in underserved communities
- Operating efficiency improvements over time
- Potential for scale and replication of successful models
Risk Assessment
Risks vary by investment type but may include operational challenges in developing markets, regulatory changes affecting social enterprises, and balancing financial returns with impact goals in evolving conditions.
Risk Factors:
- Execution challenges in complex operating environments
- Policy and regulatory shifts affecting social enterprises
- Potential longer time horizons for financial returns
- Impact measurement complexity and standardization
How It Works
Impact Assessment
Opportunities are evaluated for both financial viability and potential social impact using rigorous metrics aligned with recognized standards like IRIS+ and UN SDGs.
Capital Deployment
Investments fund social enterprises, community development projects, or impact-focused businesses with clear theories of change and implementation plans.
Results Measurement
Both financial performance and social impact outcomes are regularly tracked and reported to investors through transparent, data-driven reporting frameworks.
Investment Example
An investment in a microfinance organization providing financial services to women entrepreneurs in underserved communities.
Investment Details:
- $100,000 in a microfinance debt fund
- 3-year minimum investment term
- Focus on women-led businesses
- Operating in 5 emerging markets
- Quarterly financial reporting
Outcome:
- 6.8% annual financial return
- 2,500+ entrepreneurs supported
- 73% business survival rate after 3 years
- 35% average increase in borrower income
- 3,800+ indirect jobs created
Note: This example is illustrative only. Past performance is not indicative of future results. Impact metrics vary by investment type and region.
Frequently Asked Questions
What types of social impact can I support?
Our platform offers investments across various impact areas including affordable housing, healthcare access, financial inclusion for underserved communities, education, clean water initiatives, and sustainable agriculture.
Each opportunity is clearly labeled with its primary and secondary impact focus areas. You can filter opportunities by impact category, allowing you to align your investments with specific social causes that matter most to you. We also provide impact metrics specific to each sector so you can track the tangible outcomes your investment helps create.
How is social impact measured and reported?
We employ industry-standard impact measurement frameworks such as IRIS+ metrics and align with UN Sustainable Development Goals.
Each investment includes specific, measurable key performance indicators (KPIs) for social outcomes. Investors receive quarterly financial updates and semi-annual impact reports detailing progress against these metrics. Our impact measurement approach combines quantitative data (number of beneficiaries, units of service delivered, etc.) with qualitative assessments (stakeholder interviews, case studies) to provide a comprehensive view of social outcomes generated by your investment.
Do I have to sacrifice financial returns for social impact?
Not necessarily. Our investment offerings range across the returns spectrum.
Some opportunities target market-rate returns while delivering meaningful social impact, while others may accept below-market returns to maximize social outcomes. Each investment clearly states its financial return targets, allowing you to choose investments that align with both your financial goals and impact priorities. Many investors create a balanced portfolio including both market-rate and concessionary investments to achieve their overall impact and financial objectives.
What is the typical investment horizon for social investments?
Social investments typically require a medium to long-term perspective.
Most opportunities have a 3-7 year investment horizon, reflecting the time needed to implement social programs, achieve scale, and generate both financial returns and measurable impact. Some investments like social impact bonds may have defined terms tied to outcome achievement, while others in affordable housing or infrastructure may have 10+ year horizons. We offer a range of liquidity options, including some investments with quarterly or annual redemption windows after an initial lock-up period.