The Impact Investment Trust is looking for a £118.5m listing on London’s Main Market this July. It will also list on the Social Stock Exchange, becoming the second trust to list there after Menhaden Capital.
Impact investing has been defined as any investments "made into companies, organisations, and funds with the intention to generate a measurable, beneficial social or environmental impact alongside a financial return."
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The trust is looking to bring social impact investing to retail investors and is set to invest into six different sectors including education, healthcare, agribusiness, small scale renewable energy, small scale infrastructure and access to finance.
According to the trust's co-founder:
What we're doing is very simple – we're trying to have a positive effect on the lives of poor populations in developing countries. We do that by investing in small and medium-sized enterprises (SMEs) which are great measures of economic growth and job creation.
The fund is looking to have a number of investment teams in Africa which boast hands-on experience and expertise. According to an article in Fund Strategy, ‘approximately 40 per cent of the investment trust will be invested in Africa, 40 per cent in Asia and the remaining 20 per cent in Latin America.'
In the long run the trust is aiming for an eight percent return by investing in private equity and impact funds and is set to float on 10th July.