Impact investing glossary
Find below terminology that is used worldwide in the impact investing industry by institutional investors and fund managers.
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Investing terms
Committed capital
Amount committed in a fund vehicle by its Limited Partners (LPs) /investors.
Fund managers
Organisations managing commingled, pooled and customised vehicles invested by institutional asset owners.
Institutional asset owners
Outsourced Chief Investment Officers (CIOs), pension funds, insurance companies, family offices, sovereign wealth funds, endowments, foundations, banks, fiduciary managers, discretionary investment consultants.
Target fund size
Amount the fund manager is targeting when raising capital.
Vintage
Year where the fund manager first calls capital from investors.
Asset class
Hedge fund
Private investment partnership that uses its less regulated nature to generate investment opportunities that are distinct from those offered by traditional investment vehicles, which are subject to regulations such as those restricting their use of derivatives and leverage. Hedge funds represent a wide-ranging set of vehicles that are differentiated primarily by the investment strategy implemented.
Private equity
Equity stakes in privately held companies/funds: venture capital, growth, buyout strategies.
Private equity – buyout: A specialised form of private equity, characterised by controlling investments in established and mature privately-held firms that are undergoing a fundamental change in operations or strategy.
Private equity - growth: A specialised form of private equity, usually a minority investment, in relatively mature companies that are looking for capital to expand or restructure operations, enter new markets or finance a significant acquisition without a change of control of the business.
Private equity - venture capital: A specialised form of private equity, characterised by high-risk investment in early-stage or young companies following a growth path in technology and other value-added sectors
Real assets
Encompasses real estate, infrastructure, farmland & cropland, timberland & forestry assets.
Timberland & forestry: Ownership and/or management of productive forest lands focused on biodiversity preservation, biological growth and sustainable timber sales. More about Timberland & forestry
Farmland & cropland: Land dedicated to the systematic and controlled use of livestock and production of crops.
More about Farmland & cropland
Real estate: Commercial and residential properties and/or Real Estate Investment Trusts (REITs) focused on green buildings, elder care, disability and affordable housing properties.
Infrastructure: Greenfield and brownfield facilities or asset investments focused on social (airports, roads…), healthcare (hospitals), education (schools), energy (hydro, wind, solar...).
Market & Regions
Market targeted
Markets fund managers target for their investments: global, developed markets, emerging markets.
Global: Funds that have an investment geographic scope encompassing both developed and emerging markets.
Developed markets: We include Europe (excl. Eastern Europe), North America, Asia Pacific (Singapore, Japan, and South Korea only), Oceania (New Zealand, Australia) Middle East and Africa (Israel only).
Emerging markets: We include Latin and Central America, Asia Pacific (excl. Singapore, Japan, South Korea), Middle East and Africa (excl. Israel) Europe (Eastern Europe only).
Regions targeted
Regions fund managers target for their investments: Asia Pacific (East Asia, Central Asia, South Asia, South East Asia), Europe (Western Europe, Eastern Europe) Global, Latin and Central America, Middle East and Africa (East Africa, Middle East, Northern Africa, West Africa, Southern Africa), North America, Oceania.