Private Market Impact Investing Firms: Ownership Structure and Investment Style

Impact investing and ESG investing are specific “ethical” investing types integrating social, environmental, and moral values with financial goals. Despite receiving heightened scholarly attention, the difference between impact and ESG investing is largely unexamined, and it is not clear how they differ from conventional investment. To explain the differences between ESG, impact, and conventional investing, this paper draws on a dataset of over 8,000 private market investment (PMI) firms. It compares impact, ESG, and conventional investment across firm characteristics, investment preference, and ownership. Results show that impact investors are more likely to be owned by the government, focusing on agriculture, cleantech, and education while avoiding “sin” industries like gambling and tobacco.

Keywords: impact investment, private equity, sustainable finance

JEL Classification: G24, L26, L31, O35, Q01, Q56

Suggested Citation: Suggested Citation

Cojoianu, Theodor and Hoepner, Andreas G. F. and Lin, Yanan, Private Market Impact Investing Firms: Ownership Structure and Investment Style (August 17, 2022). Forthcoming, International Review of Financial Analysis, Michael J. Brennan Irish Finance Working Paper Series Research Paper No. 21-12, Available at SSRN: https://ssrn.com/abstract=3615094 or http://dx.doi.org/10.2139/ssrn.3615094