By Lauryn Agnew, Stephen Malta
Our History of Place-Based Impact Investing:
Traditional investing has focused on measuring risk and returns, and only recently has impact emerged as part of this equation so that we can now measure risk, return, and track our impact. What would this need to look like if we were to focus on impact for an entire region while achieving market-rate returns on investment?
In 2011, Lauryn Agnew launched the Bay Area Impact Investing Initiative (the BAIII) to begin a community-wide conversation about investing for regional impact. Lauryn recognized that there were limited options for those with community-aligned missions that also sought to uphold a fiduciary responsibility.
Initially the initiative’s goal was to develop the blueprint of a regional impact solution, and a detailed model for “place-based” impact investing emerged from this effort and was released this 2017 with the proposal for the Center For Place-Based Impact Investing in the Bay Area.
Why Place-Based Impact Investing?
If we work towards regional impact together, we can centralize, coordinate, and invest public, private, and philanthropic capital directly into our local economy. In one place, we can provide the stringent due diligence while balancing our unique risk, return, and impact goals across all asset classes with specific targeted impacts:
The Bay Area has the right combination of wealth pools, talent, innovative spirit and generous philanthropists to achieve collective impact with place-based impact investing. Early adopters will demonstrate the variety of financial instruments, strategies and collaborations that will promote and enhance the economic resilience, prosperity, and sustainability of our region. With our model for place-based impact investing, we are working together towards impact in our own backyard.
This is the second article of our Place-Based Series. Check out the first article: “What is Place-Based Impact Investing?“.