Impact Investing Returns
Do Impact funds generally generate lower returns than others? What is the expectation held by Limited Partners?
There are lots of funds with an Impact thesis that are over-performing while others under perform. They follow a Pareto distribution for returns just like all other funds.
Thank you Mike, from what I have read that sounds about right with the key variation being those that deliberately place financial returns lower on their priority list. I found this article interesting:
https://impactalpha.com/do-impact-venture-capital-funds-outperform-traditional-vc-yes-no-and-maybe/#:~:text=Using%20the%20latest%20Cambridge%20Associates,a%20bottom%20quartile%20of%201%25.
https://impactalpha.com/do-impact-venture-capital-funds-outperform-traditional-vc-yes-no-and-maybe/#:~:text=Using%20the%20latest%20Cambridge%20Associates,a%20bottom%20quartile%20of%201%25.