In London and for London

Think tank: Centre for London

Author(s): Claire Harding; Josh Cottell; Jon Tabbush; Zarin Mahmud

November 16, 2022

This report from UK think tank the Centre for London looks at impact investing for the capital.

This report looks at ways to maximise the local benefits of impact investment capital – with five key recommendations on how to support and boost the sector. Impact Investments are investments made with the intention to generate positive, measurable social impact alongside a financial return. When choosing where to put their money, investors consider the positive difference a project will make to society as well how much and how quickly they will achieve a financial return. Our research identifies five key ways to grow London’s impact investment sector. To support the sector, access to capital should be more inclusive, with the creation of funds for minority led projects which champion diversity. Impact investment should reflect the real needs of Londoners, and asset managers should ask organisations applying for funding to demonstrate that it’s what the people who benefit want and need. To fill gaps in the market, funding should be expanded for early to mid-stage SME projects seeking £100-300k, with blended finance options for projects with deep impact but limited scalability. To build connections and community by connecting the right type of capital with the right project, the Greater London Authority should provide a forum for investors. Finally, to reach more people, the sector needs to speak the same language. It should work on common definitions of goals and measurements of impact.