With the rise of impact investing, the career path of an impact investment manager has become increasingly attractive for aspiring investors who want to generate social and environmental impact alongside financial returns. However, successfully embarking on an impact investment management career requires understanding the roles, skills and knowledge needed in this emerging field. This article will provide an overview of impact investment manager career paths, drawing from insights shared by experienced practitioners.
Core responsibilities of an impact investment manager
The main responsibility of an impact investment manager is to make investment decisions that achieve measurable and beneficial social or environmental outcomes, in addition to financial returns. This involves identifying impact investment opportunities, conducting rigorous due diligence on potential deals, structuring investments, managing relationships with stakeholders, monitoring the performance of portfolio companies, and reporting impact results to investors. Leading an investment team and developing impact measurement frameworks are also key duties. Deep expertise across both financial analysis and impact assessment is needed to excel as an impact investment manager.
Common career paths to become an impact investment manager
A common career path is to gain initial experience in investment banking, consulting or private equity before specializing in impact investing. This provides foundational training in financial modeling, valuation, due diligence and portfolio management. Aspiring impact investors can then develop sector expertise and impact assessment capabilities through roles focused on ESG investing, sustainable finance or venture philanthropy. Leadership experience at an impact-focused fund or investment platform helps cement impact investing competencies. Advanced impact investing credentials such as the GIIN’s CAP® certification can boost prospects. In some cases, experienced impact investors transition later in their careers from mainstream finance or social sector roles.
Required skills and knowledge for impact investment managers
Expert financial analysis skills are mandatory, encompassing modeling, valuation, due diligence, risk management and portfolio optimization knowledge. Equally important is deep understanding of impact measurement – selecting metrics, collecting data and assessing impact performance. Strong interpersonal skills are vital for stakeholder management. Commercial acumen, resilience and entrepreneurial thinking also help in the fast-evolving impact investing industry. Ongoing learning across ESG factors, impact sectors, blended finance and innovative deal structures is essential. Leading impact investment managers combine analytical rigor with creative problem-solving to structure high-impact investments.
Future career development prospects within impact investing
With the growth of the impact investing industry, career opportunities are expanding rapidly. After gaining experience as an investment analyst or associate fund manager focused on impact deals, progression to Partner or Fund Head roles is possible. Some move into impact investment advisor or consultant positions. Opportunities to pioneer new impact investing vehicles or platforms also exist for experienced managers. Senior experts may teach impact investing programs or author field-building research. Geographical mobility is often required to access the most exciting impact investment manager roles.
From rigorous financial training to creative impact assessment capabilities, a multifaceted skillset is required for a successful career as an impact investment manager. A range of career paths can lead to these coveted roles centred on melding purpose with profits.