New impact report on EU vs US Impact Investing Market.
For a global impact investing market that the GIIN estimated at $1.164 trillion in 2022, looking at all the Phenix Impact Database metrics, there is no doubt that there is a clear US-European divide.
Perhaps the starkest difference is in number of funds dedicated to, and assets invested in, impact in the public equity markets, which stands at 71% and 86%, respectively. There are likely to be a number of potential reasons for this.
Culturally, European investors see financial inclusion as an important part of being a developed world and, as such, are often willing to accept a marginally reduced rate of return to achieve social and environmental goals.
Meanwhile, Americans are big philanthropists. The global philanthropy market was estimated to be £182 billion, according to Barclays Philanthropy Outlook 2021, with the UK giving £11.3 billion in 2020, and US charities receiving $499.33 billion in 2022.
- 33% more EU funds than US funds
- 44% more European impact investors than US impact investors
- 71% more public equity funds in Europe compared to the US
- 86% more allocated to public equity by European vs US investors
- 58% of the US fund universe are private equity funds compared to 42% for European funds
- 62% more assets raised by European vs US private equity funds
- 88% more public equity assets raised by European funds vs US ones
About Phenix Capital Group
Phenix Capital Group is an impact investment consultant that enables institutional investors to make impact investments. Founded in 2012, the company has been dedicated to building a solid knowledge base of the impact investing industry, educating asset owners, and catalysing institutional capital to impact investing.
About the Impact Database
Phenix Capital Group’s Impact Database provides investors with access to and intelligence on the impact fund market opportunities available to them. The Phenix Capital’s Impact Database has been tracking the allocation of capital to impact investing since 2015, and now includes new data sets of outcome-based investable themes mapped against the Sustainable Development Goals (SDGs).
The Impact Database includes a detailed overview of more than 2,200 impact funds. Three main variables are used to construct, monitor and update the dataset: 1) funds considered to have an impact proposition; 2) institutional scale, and 3) target market-rate returns.
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