Sovereign Wealth Funds (SWFs) are increasingly steering their investments towards critical sectors for sustainable development, with healthcare and renewable energy taking the lead.
During the COVID-19 pandemic, the healthcare sector witnessed a remarkable surge in SWF investments, accounting for an impressive 42.3% of SWF's SDG-aligned deals, totaling a substantial USD $12.8 billion. Notable investments by entities like Temasek in BioNTech, GIC in Medline Industries, and Mubadala Investment Company in Envirotainer showcase SWFs' rapid response to global health crises. They are effectively merging public health objectives with strategic financial investments (Source: TIL, 2023).
This shift towards impactful investments underscores SWFs' commitment to sustainable development while aligning their financial prowess with global health and environmental imperatives.
The Business of Impact Investing in 2023
Impact investing is a form of investing that believes that every dollar invested can make a difference, while producing a profit. Over the past 20 years, impact investing has undergone a remarkable evolution, driven by a confluence of societal, economic, and technological factors. These influences have propelled impact investing into a crucial mechanism for addressing societal needs, traditionally the domain of public funding. In 2022, the impact investing market sat at US$1,146 billion, growing at a healthy compounded annual growth rate (CAGR) of 29% over the last four years. This special report features interviews with thought leaders in the impact investing space, and offers an insightful perspective on the current and future state of impact investing, its challenges and opportunities, and highlights case studies of investors, social enterprises, and the impact they are having on the world.