Blog Posts by Andrew Luu

  • SBA Proposes Designation and Additional Requirements for Impact SBICs

    The US Small Business Administration (SBA) has proposed new regulations that would provide an additional designation and requirements for impact-oriented Small Business Investment Companies (SBICs). “Impact SBICs”, as designated by the SBA, refers to investment companies that aim to generate positive financial returns alongside measurable social impact. This proposal is part of the SBA’s effort to increase the pool of investment capital devoted to low-to-moderate income (LMI) and underserved communities. The SBA and the SBIC Program: Facilitating Long-Term Capital to US Small Businesses ...Read More »

  • Criticism of Chan Zuckerberg Initiative and Implications for Impact Investing Industry - The Challenges in Using Market Forces to Do Good

    Facebook co-founder and CEO, Mark Zuckerberg, announced earlier this week that he and his partner, Dr. Priscilla Chan, would devote 99% of their wealth, approximately $45 billion, to create social good by making impact investments in sectors such as health, education, and energy.  ...Read More »

  • Merrill Lynch Publishes White Paper Regarding Impact Investing

    In a white paper published by the Merrill Lynch Wealth Management Institute, Anna Snider, Head of Global Equity and Impact Investing Due Diligence, provides an overview of the contemporary impact investing landscape, derived from analysis of academic research and industry data. “Impact Investing: The Performance Realities” discusses risk assessment in impact investing, the growing body of evidence surrounding the financial performance of impact investing, and key development challenges to the impact investing industry.    Some key findings and observations include: ...Read More »

  • Profits and Purpose: Wharton Study Finds that Impact Investments Can Produce Both Market-Rate Returns and Long-Term Impact

    Impact investments are capable of producing market-rate returns alongside long-term impact, according to a study released by the Wharton Social Impact Initiative (WSII) at the Wharton School of the University of Pennsylvania. In their study, Great Expectations: Mission Preservation and Financial Performance in Impact Investments, the WSII analyzes 53 impact-focused private equity funds, representing 557 individual investments, to determine the interplay between investment performance and impact mission preservation of portfolio companies on exit. ...Read More »

  • IRS Ruling Makes Impact Investments More Accessible for Private Foundations

    In an announcement released by the IRS, mission-related investments (MRIs) – investments made from a foundation’s endowment with the intention of generating social impact in addition to financial returns – made by foundations will be seen as “non-jeopardizing”, and thereby will not be subject to an investment gains tax. PRIs and MRIs: A Tax Perspective ...Read More »

  • Pay for Success Impact Investments

    Source:  Third Sector Capital Partners

    In partnership with Abode Services and Third Sector Capital, Santa Clara County announced Project Welcome Home, one of the first Pay for Success (PFS) impact investments in California. ...Read More »

  • The Financial Performance of Impact Investments

    The Impact Investing Benchmark demonstrates that impact investments are capable of producing internal rates of return (IRR) equal to, and at times better than, traditional investments of comparable size and geography. The Report was produced by the Global Impact Investing Network and Cambridge Associates.  Read on for more information. ...Read More »

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