Mapping the Impact Investing Sector in Brazil

During the past 10 years of impact investing in Brazil, we have observed a significant development in the impact investing space. Five years ago, only a few players identified themselves as impact investors, very few organizations in the social sector were investor-ready, and there were almost no co-investment opportunities. A steep increase in the number of investors and amount of capital, greater coordination among players, and a more professional workforce active in the industry today have facilitated the development of impact investing. This market study of the impact investing sector in Brazil reveals significant market growth. Nineteen of Brazil’s largest impact investors, including fund managers, banks, foundations, family offices and others surveyed expect to commit 40% to 50% more capital to impact investments in 2014 compared to 2013.

Executed by Aspen Network of Development Entrepreneurs (ANDE), LGT Venture Philanthropy, Quintessa Partners in collaboration with University of St. Gallen Hub São Paulo.

This report has found a consensus among impact investors that the market will continue to grow and that there are many reasons to be optimistic about the future. For one, the Brazilian market itself is a great opportunity: not only has the middle class increased by 45 million people over the past 10 years, but there is also an unmet market demand for services and products offered to the base-of-the-pyramid (BOP). However, the ability to prove that social and financial returns can be combined is a key factor that will determine the pace of market development. These successful examples have the potential to attract talented entrepreneurs, and subsequently bring in mainstream investors and additional potential entrepreneurs in a virtuous cycle.