ANDE released a report in partnership with LGT Impact and the Latin American Private Equity & Venture Capital Association.
The Aspen Network of Development Entrepreneurs (ANDE) in partnership with LGT Impact and the Latin American Private Equity & Venture Capital Association (LAVCA) released a report on the growing landscape of impact investing in Latin America. Impact investing-investing with the intent to achieve both financial and social return-is a relatively nascent industry, and this report aims to fill the data gap.
Latin America is a region with great promise yet plagued by social inequalities. As the report points out, Latin American countries are approximately 30 percent more unequal than the world average, and changes are needed to improve education and healthcare and to create more formal employment opportunities. The region does boast an entrepreneurial culture-with an engaged millennial population interested in social progress-and affinity for startups.
Impact investing has grown quickly within the past five years and demonstrates that effective collaboration among entrepreneurs, financial markets and local governments can help solve social challenges and spark job creation. The report finds that firms headquartered in Latin America manage USD1.2 billion in assets under management (AUM) dedicated to impact investing, and local and international firms deployed USD1.3 billion across more than 520 impact investing deals in 2014 and 2015. The report offers trends in regional impact investing-exploring fundraising, deals and exits-with a focus on impact measurement, talent and gender. It provides a deep dive in impact investing in three key markets: Brazil, Colombia and Mexico. More than 70 investors were surveyed while additional in-person interviews were conducted in the above target geographies.
Click here to read the full report.