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Laxman Pai, Opalesque Asia:

Impact investing in private markets could be as much as $2.1 trillion in assets under management, although only $505 billion is clearly measured for development impact and financial returns, said a report.

According to IFC, a member of the World Bank Group, this means that the market is meeting only about 10 percent of the demand, estimated by IFC a year ago at $26 trillion if the right opportunities were available.

However, the impact investing industry is continuing to attract investors despite the global recession caused by the COVID-19 pandemic, said the new report, Growing Impact-New Insights into the Practice of Impact Investing.

In public equity markets, the report suggests that $10 trillion in assets actively managed could be directed toward achieving impact.

"There is an increasing demand for more responsible capitalism. The current crisis is casting a harsh lens on inequalities and the importance of sustainability and could accelerate the demand for investments in jobs, gender equality, and environmental protection. These core values can ensure continued long-term financial performance," said Philippe Le Houérou, Chief Executive Officer of IFC.

In the years ahead, impact investing will face strong headwinds in the shape of tighter liquidity conditions, an aversion for risk and widespread economic disruption, all of which will threaten the viability of many impactful firms.

One year after the introduction of the Oper......................

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