Impact investing has been gaining huge popularity in recent years as more investors look to not just generate financial returns, but also create positive social and environmental impact. This has led to the rise of impact investing consulting firms that help clients develop impact investing strategies and connect them to impact investment opportunities. In this article, we will look at some of the top impact investing consulting firms in the US, UK and globally.
Top impact investing consulting firms help develop impact strategies
Many mainstream investment firms and high net worth individuals are new to impact investing. Impact investing consulting firms play a crucial role in educating these investors on impact strategies. The top firms have experts who can advise clients on developing customized impact investing policies, screening potential investments for impact, and measuring social and environmental outcomes. Firms like Tideline, ImpactAssets and Impact Capital Advisors are leaders in this strategic consulting.
Experienced impact consulting firms provide sourcing and due diligence
A major challenge for those starting out with impact investing is finding suitable impact investment opportunities across different asset classes. Established impact consulting firms leverage their networks and experience to source impact deals for clients. They also conduct rigorous due diligence on potential impact investments to assess financials as well as social & environmental impact. Aligned Impact, Capria Ventures, and Impact Capital Advisors offer such sourcing and due diligence services.
Top firms also help with impact measurement and management
A hallmark of effective impact investing is robust impact measurement and management. Leading impact consulting firms guide investors on monitoring social and environmental performance of investments, and collecting data on relevant impact metrics. ImpactAlpha, Sonen Capital and Tideline have expertise in designing impact management systems and impact measurement frameworks for investors. This enables better evaluation and reporting of impact investments.
Large global consulting firms also have impact investing capabilities
In addition to boutique impact firms, large global consulting firms have also been boosting their impact investing capabilities. For instance, McKinsey & Company has a dedicated team called McKinsey.org that advises foundations and nonprofits on impact investing. The Boston Consulting Group offers impact measurement and management services through its BCG Social Impact unit. Prominent accounting and advisory firms like Deloitte, EY and KPMG also have impact investing advisory capabilities.
In summary, leading impact investing consulting firms like Tideline, Aligned Impact, ImpactAssets, and McKinsey.org provide strategic, sourcing, due diligence and impact measurement services to help clients implement impact investing effectively.