The Impact of Impact Investing on Funding and Financing Processes

Attorney Zac Barnett is an experienced fund financing lawyer with nearly 20 years of experience in commercial lending legislation and asset management. As a co-founder of Find Finance Partners, attorney Zac Barnett is an accomplished writer and researcher in the investment field, leveraging recent trends like impact investing on the viability of financing and asset management processes.

Impact investing relies on the effects of a company’s environmental, social, and governance policies (ESG) on long-term fiscal stability and perceived equity support. Socially responsible investments are on the rise, with research showing 88 percent of investors reporting achieving more than the expected profit in 2020. Companies with European Union investments are likely more used to the prospect of impact investment-guided practices due to most leadership in the industry coming from those areas.

Larger and middle-market businesses have most likely noticed the slight paradigm shift from traditional to impact investing in recent years. However, based on empirical evidence, smaller companies have compelling reasons to consider developing ESG policies to attract external funding. Even if institutional-quality programs are beyond the scope of a small company’s capabilities, there are still ways to make headway on addressing their areas of potential improvement.