What is social impact investing?

Social impact investment seeks to generate social impact alongside financial return.

This investment often brings together capital and expertise from the public, private and not-for-profit sectors to achieve a social objective. Investments can be made into companies, organisations or funds, whether they be not-for-profit or for-profit.

Social impact investments can also be used to finance social services and social infrastructure. In these types of arrangements, payments are normally made based on achieving agreed social outcomes rather than on inputs or activities. 

Where investors are involved, they will usually expect their investment to be repaid and, potentially, to earn a return. This return is likely to depend on the level of social outcomes achieved.