Dear Presidential Candidates,
At tonight’s debate, we will hear about the many issues that divide you. We would like to offer for your consideration a new approach that could unite us across party lines, across the country, and indeed, around the world.
What if we could create good jobs, educate our kids, fix our electrical grids and sewers and roads, address climate change, and in so doing all of that, we could also jet-propel the economy, too? What if we could develop powerful new technologies that fuel prosperity here at home and then go on to share that innovation and prosperity with the rest of the world?
What if private capital could be mobilized to tackle urgent challenges for which public and philanthropic capital isn’t enough? And what if that effort could produce impressive financial returns as well?
Sound good? It’s called The Impact Economy, and it’s already happening. Private capital invested for public good. Billions and potentially trillions of dollars of values-aligned capital driving demonstrable social and environmental progress—and not just to do good, but also because it’s good business.
Impact investing is a growing movement across industries, geographies, communities, races and classes seeking to create an economy that works for all. Bit by bit, the capital markets are beginning to reorient themselves toward a more holistic definition of value—one that rests on the creation of long-term value, rather than short-termism.
Impact investing is already improving the economy, energizing communities, and healing the planet — delivering strong financial returns while creating a world we’re proud to pass onto our children and grandchildren. It is an inclusive financial movement, promoting diversity across gender, race, income and geography.
Who’s doing it? Institutional investors (such as pension and sovereign wealth funds and university and foundation endowments) and individual investors (from billionaires to 401k holders) seeking positive social and environmental impact, as well as compelling financial returns. Firms like Goldman Sachs, JPMorgan Chase, Merrill Lynch and Morgan Stanley are hearing the drumbeat and launching products to meet client demand. And asset managers like Blackrock and Bain Capital are looking for growth prospects by investing in public companies and private businesses in positive-impact areas like agriculture, food, energy, water, healthcare, education and financial inclusion.
To read the full letter, visit ImpactAlpha.