Redefining capitalism: how impact investing merges profit with purpose. Listen to the podcast interview with Priya Parrish
Insights from Priya Parrish on the evolution and future of purpose-driven investing.
Welcome to #275 weekly newsletter from The Purse.
Who They Are:
Priya Parrish is the Chief Investment Officer at Impact Engine, a Chicago-based, women-founded and women-led venture capital and private equity firm.
Established in 2012, Impact Engine is dedicated to aligning financial returns with positive societal outcomes, focusing on sectors such as economic opportunity, environmental sustainability, and health equity. As of early 2024, the firm manages over $244 million in assets.
What They Did:
In 2024, Priya authored The Little Book of Impact Investing: Aligning Profit and Purpose to Change the World, offering readers an insightful guide on achieving financial returns while making a positive societal impact.
Under her leadership, Impact Engine partnered with Bernstein Private Wealth Management to launch the Bernstein Impact Alternatives II fund, focusing on investments in environmental sustainability, economic opportunity, and health equity.
Key Takeaways:
Evolution of impact investing:
Priya Parrish highlights the transformation of impact investing from its early days, where it was often associated with subpar performance and skepticism from traditional investors, to its current state, characterised by sophisticated strategies and the involvement of credible, proven investors. She emphasises that today, impact investing attracts top talent, with many investors seeking to align profit with purpose.
Defining & measuring impact:
The conversation the importance of defining and measuring impact, acknowledging challenges in standardisation but underscoring the necessity for intentionality and accountability in impact investing.
Overcoming misconceptions:
Priya addresses the skepticism some traditional investors or venture capitalists have toward impact investing, often perceiving it as yielding lower returns. She counters this by illustrating that impact investments can achieve market-rate returns while addressing unmet needs, turning market failures into opportunities for meaningful change.
Empowering future investors:
Through her work and teaching, Priya encourages the next generation to expect more from their capital, advocating for investments that not only provide financial returns but also contribute positively to society.
🎧 Listen to the full episode: see link below.
💡 What are your thoughts? Will “impact investing” just become how we invest one day?
We’d love to hear from you. Get in touch with Jana via the The Purse website or tweet @jointhepurse and janicka. We do no provide investment advice. Please do your own research or speak to a financial adviser.
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