Responsible Investing: Southeast Asia top destination for impact investments

Posted on October 3, 2018 by Patamar Capital

Southeast Asia has seen a significant increase in impact investments in recent years, according to the Global Impact Investing Network (GIIN).

Private impact investors (PIIs) — fund managers, family offices, pension funds and other types of private capital — poured nearly US$1 billion into the region from 2007 to 2017 while development finance institutions (DFIs) deployed US$11.2 billion, it says in its “Landscape of Impact Investing in Southeast Asia” report, published in early August.

“Southeast Asia has been the fastest growing impact investing market in the world for the past five years. The region offers dynamic business environments, with increasing entrepreneurial and investment activity focused on ensuring inclusive and sustainable economic development,” says GIIN director of research Abhilash Mudaliar in a media statement.

Impact investments have been the most prolific in the financial services, energy and manufacturing sectors, capturing 82% of the total capital deployed (63% of total deals) from 2007 to 2017. Indonesia, the Philippines and Vietnam were the three largest markets in the region, having attracted 60% of the capital deployed.

When it comes to impact investments made by PIIs, Cambodia, Indonesia and the Philippines lead the region in terms of investment amount and the number of deals. Of the three countries, Cambodia has received the most impact investment dollars by far.

DFIs also invest in PIIs (typically impact fund managers) to drive impact investments in more targeted areas such as poverty alleviation, job creation and women’s empowerment. By investing through PIIs, DFIs are able to target smaller enterprises.

Read the full article on The Edge Malaysia.

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