Private market impact investing firms: Ownership structure and investment style

Impact investing and ESG investing are specific “ethical” investing types integrating social, environmental, and moral values with financial goals. Despite receiving heightened scholarly attention, the difference between impact and ESG investing is largely unexamined, and it is not clear how they di...

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Bibliographic Details
Published in:International review of financial analysis 2022-11, Vol.84, p.102374, Article 102374
Main Authors: Cojoianu, Theodor F., Hoepner, Andreas G.F., Lin, Yanan
Format: Article
Language:English
Subjects:
Impact investment
Private equity
Sustainable finance
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Summary:Impact investing and ESG investing are specific “ethical” investing types integrating social, environmental, and moral values with financial goals. Despite receiving heightened scholarly attention, the difference between impact and ESG investing is largely unexamined, and it is not clear how they differ from conventional investment. To explain the differences between ESG, impact, and conventional investing, this paper draws on a dataset of over 8000 private market investment (PMI) firms. It compares impact, ESG, and conventional investment across firm characteristics, investment preference, and ownership. Results show that impact investors are more likely to be owned by the government, focusing on agriculture, cleantech, and education while avoiding “sin” industries like gambling and tobacco.
ISSN:1057-5219
1873-8079
DOI:10.1016/j.irfa.2022.102374