Boston, MA (PressExposure) November 08, 2011 -- Alternative Asset Analysis (AAA), which is a major advocate of impact investing, has welcomed the announcement from the Overseas Private Investment Corporation (OPIC) that it has approved finance for six new impact investment funds.
The Board of Directors at OPIC, which is the development finance institution for the US government, said the extra finance and the new funds will see some $875 million being injected into the industry.
The financing from OPIC total some $285 million, which will raise some $875 million for projects in emerging markets. AAA claims the investment marks an important day for the future of impact investing. POIC President, Elizabeth Littlefield, stated, "This is a watershed day in the evolution of impact investing."
The money will go towards a range of projects that will all be looking to help fund environmentally and socially responsible projects in the developing world. Impact investing has been successful in providing small business loans in Africa, which help communities to work their way out of poverty by providing education and access to essential financial help.
AAA has supported impact investing, not only as a way to make a difference, but as a way to see healthy returns during a time when traditional investment looks increasingly unattractive. AAA's analysis partner, Anthony Johnson, said, "Impact investment projects an really change peoples lives for the better and investors are starting to view the as a viable and ethical alternative to putting cash in stocks and shares that could lose their value overnight."
AAA also promotes investment in other ethical projects, such as plantations in Brazil, run by Greenwood Management. This project gives anyone with EUR 10,000 to invest, a chance to own their own section of Brazilian forest. The non-native tree plantations are also an effective way to protect native species from deforestation, claims AAA.
Past successful impact investment funds have offered banking services to the unbanked in Africa, improved healthcare and invested in small businesses in countries affected by conflict, such as Liberia and Sierra Leone.