October 18, 2012
By: Ashley Lee of International Financial Law Review
Why impact investing is the next corporate innovator
Oxfam’s £1 billion loan to Mongolia’s Xac Leasing blurs the line between private equity funds and not-for-profit organisations.
The transaction highlights the growing trend of impact investments, or utilising private equity strategies for investments focused on the greater good. It also signals environmental, social and governance (ESG) issues becoming more important for private equity funds.
However both trends raise questions about the for-profit and non-profit status of companies, and may signal the introduction of new corporate structures.