Western Australia has seen $58m in impact investments in the past two years, with a further $123m in the pipeline, according to the first ever WA-specific industry report assessing the state of the WA impact investment market.
The report Investing with Purpose, produced by not-for-profit impact investment intermediary Impact Seed, includes an assessment of current and forward deal flow, investor sentiment, and policy and market recommendations based on industry data and a survey of participants in the WA investment market.
Mr Chuck Berger, Impact Seed’s Executive Director of Investment, said “We’ve suspected there is a great deal of investor interest in social and environmental impact methodologies, and now we have the data to prove it. A growing number of investors are searching for ways to invest in WA’s regions, in our environment, and in our social systems – but the marketplace for these deals still needs to catch up.”
According to the study, investor demand for impact deals is strong but development is hindered by a lack of government support, brokering capacity and market transparency. 55% of survey respondents indicated that “social impact” would be of “main importance” to them in the coming five years – a percentage equal to those identifying “financial returns” as of “main importance”.
Impact investment involves investing intentionally to create measurable environmental or social outcomes, alongside a financial return. Across Australia, there are at least $78b in assets under management in impact investments, but those investments are weighted to the Eastern States. Impact Seed’s highlights the central importance of WA’s growing pool of Aboriginal capital, estimated at between $4b-$6b in financial assets and growing rapidly, to leveraging better results for WA.
The full report can be accessed on Impact Seed’s website.
