Private Market Impact Investing Firms: Ownership Structure and Investment Style

Forthcoming, International Review of Financial Analysis

Michael J. Brennan Irish Finance Working Paper Series Research Paper No. 21-12

Posted: 24 Jun 2020 Last revised: 30 Sep 2023

See all articles by Theodor Cojoianu

Theodor Cojoianu

Edinburgh Business School - The University of Edinburgh

Andreas G. F. Hoepner

Smurfit Graduate Business School, University College Dublin; European Commission - DG FISMA

Yanan Lin

UCD Michael Smurfit Graduate Business School

Date Written: August 17, 2022

Abstract

Impact investing and ESG investing are specific “ethical” investing types integrating social, environmental, and moral values with financial goals. Despite receiving heightened scholarly attention, the difference between impact and ESG investing is largely unexamined, and it is not clear how they differ from conventional investment. To explain the differences between ESG, impact, and conventional investing, this paper draws on a dataset of over 8,000 private market investment (PMI) firms. It compares impact, ESG, and conventional investment across firm characteristics, investment preference, and ownership. Results show that impact investors are more likely to be owned by the government, focusing on agriculture, cleantech, and education while avoiding “sin” industries like gambling and tobacco.

Keywords: impact investment, private equity, sustainable finance

JEL Classification: G24, L26, L31, O35, Q01, Q56

Suggested Citation

Cojoianu, Theodor and Hoepner, Andreas G. F. and Lin, Yanan, Private Market Impact Investing Firms: Ownership Structure and Investment Style (August 17, 2022). Forthcoming, International Review of Financial Analysis, Michael J. Brennan Irish Finance Working Paper Series Research Paper No. 21-12, Available at SSRN: https://ssrn.com/abstract=3615094 or http://dx.doi.org/10.2139/ssrn.3615094

Theodor Cojoianu

Edinburgh Business School - The University of Edinburgh ( email )

Old College
South Bridge
Edinburgh, Scotland EH8 9JY
United Kingdom

Andreas G. F. Hoepner (Contact Author)

Smurfit Graduate Business School, University College Dublin ( email )

Blackrock, Co. Dublin
Ireland

European Commission - DG FISMA ( email )

2 Rue de Spa
Brussels, 1000
Belgium

Yanan Lin

UCD Michael Smurfit Graduate Business School ( email )

UCD Michael Smurfit Graduate Business School
Carysfort Ave.,Blackrock
Dublin, Dublin 4
Ireland

HOME PAGE: http://https://people.ucd.ie/yanan.lin

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