Week 8

Question 1

What is the Impact Investing Institute?

Answer 1

The Institute is an independent, non-profit organisation

Our mission: To make capital markets fairer and work better for people and the planet.

Question 2

Who are the impact investors at III?

Answer 2

Private foundations
Banks
Pensions funds and insurance companies
Asset Managers
Family offices
Social investors

Question 3

What are the 6 pillars of Place Based Impact Investing (PBII)?

Answer 3

1. Housing
2. Regeneration
3. Infrastructure
4. Clean Energy
5. SME Finance
6. Natural Capital

Question 4

What are the 5 barriers of PBII?

Answer 4

Awareness
Financing Vehicles
Capacity and Capability
Impact measurement frameworks
Project origination

Question 5

What is a CDFI?

Answer 5

Community Development Finance Institutions (CDFIs) are mission-driven, independent social enterprises set up specifically to serve individuals, communities and businesses that are unable to secure credit through mainstream lenders.

• They provide debt finance and support through a relationship-based approach to lending.
• Currently funding comes mostly from social investors and social banks, with additional support from the British Business Bank.
• The CDFI sector has yet to receive major investment by large commercial banks – but the interest is there, as is the appetite to take on additional finance on from the CDFIs themselves.
• In the US, the CDFI sector is older and much more established, partly driven by supportive legislative and regulatory requirements.

Question 6

What are 3 steps to turn ideas into flagship investment projects?

Answer 6

1. Identify regional strengths
2. Articulate opportunities associated with strengths
3. Co-design project ideas and prioritise them

Question 7

What are 3 insights of Enhancing Capacity and Competency in PBII?

Answer 7

Local Authority capacity challenge: Navigating the demanding landscapes in which local authorities operate poses significant challenges. While local authorities we collaborate with recognise the benefits of adopting a PBII approach, the journey necessitates acquiring new skills and dedicated resources.

Local Authority capability challenge: Despite harbouring innovative ideas, local authorities often encounter difficulties in effectively engaging with investors and aligning suitable projects with the right backers. Developing robust tools that simplify adoption for officers is imperative.

Evidence-based de-risking for investors: Robust examples showcasing local authorities effectively fulfilling various roles within PBII serve to de-risk investment decisions. These exemplars provide valuable blueprints for replication and aid in embedding the PBII approach.

Question 8

What are 3 insights in Facilitating Connections Between Investors and Opportunities in PBII?

Answer 8

The value of facilitating dialogue: There exists tangible value in convening stakeholders to engage in open discussions regarding identified needs. Approaching these interactions with a spirit of openness and receptiveness fosters productive exchanges.

Importance of early investor engagement: Local governments recognize the significant value that the perspective of impact investors brings to projects, particularly through early engagement. There is a willingness to collaborate in problem-solving alongside impact investors, acknowledging their expertise and experience in developing innovative solutions. Establishing connections at an early stage is paramount to realising this potential.

Cultivating trust and relationships: The successful execution of place-based investment relies on the cultivation of mutual trust and understanding among stakeholders. Building robust relationships is essential for effectively delivering impactful investment initiatives.

Question 9

What are 2 insights in Beyond investment: embracing placemaking?

Answer 9

Embracing a Place-based Approach: Shifting focus from isolated investments towards a broader understanding of place-based transformation and the interconnectedness of investments can yield greater impact and opportunities. There lies a significant potential for blended finance solutions, necessitating the cross-subsidization of challenging projects by integrating them within comprehensive multi-sector plans. Prioritising

Community Engagement: The integration and longevity of community engagement are crucial to ensuring that outcomes and impacts align with community needs. Our comprehensive community engagement guide offers insights into how investors can effectively approach and sustain community involvement in their initiatives.

Question 10

What are 5 reasons to do community engagement?

Answer 10

1. Building Trust
2. Deepening understanding of the local context
3. Improving financial performance
4. Enhancing risk management
5. Securing commercial opportunities