Open Menu

Insights

Policy-Enhanced Impact Investing: A New Take on Maximizing Societal Impact
Dec
10
2024

Policy-Enhanced Impact Investing: A New Take on Maximizing Societal Impact

By Liesel Pritzker Simmons

In the ever-evolving world of impact investing, we're constantly seeking innovative ways to amplify our positive influence on society and the environment. Today, I'm thrilled to share an exciting new approach we're developing at Blue Haven in partnership with LAVA Strategies: Policy-Enhanced Impact Investing.

The Power of Impact Investing and the Need for More

Over the years, impact investing has proven to be a powerful driver of positive social and environmental change. Since launching our family office, we have witnessed the rapid expansion of the impact investing industry, from $8 billion committed in 2012 to over $39.8 billion invested in 2022, according to organizations surveyed by the Global Impact Investing Network. While this growth is impressive, there's an untapped lever that could unlock even greater potential: policy engagement.

Now that the November election is over, we see an even greater opportunity to engage investor voices at the federal level and to increase activity on a broad range of issues at the state level.  Policy engagement is a tool that has been long used effectively by industries to influence rules and regulations that affect them. By strategically investing in political and legislative arenas, impact investors can harness the same powerful tool—policy engagement—to amplify our positive societal influence.

Similarly, successful movements that resulted in marriage equality, cannabis legalization, and the shift toward 100% clean energy standards have demonstrated how deploying philanthropic capital and advocacy can create lasting change. Policy-Enhanced Impact Investing draws lessons from these initiatives to foster long-term political influence, shaping policy development and ensuring its effective implementation. This approach integrates policy and advocacy considerations alongside investment decisions, strategically helping shape public policy before or after an investment to create a more favorable environment for achieving impact goals. By aligning political and philanthropic capital with for-profit investments, we can generate a synergistic effect that magnifies overall impact.

Our Vision: Building a Community of Impact-Driven Investors

Simply put, the most effective way for finance and investing to change the world is by thoughtfully navigating the complexities of working with the public sector. At Blue Haven, we believe that collaboration is the cornerstone of transformative change. Our most impactful work has always been rooted in strong partnerships. Guided by this spirit, we are convening a community of like-minded impact investors and family offices to explore and innovate with policy-enhanced approaches. This effort builds on the exceptional work of many trailblazers—Candide Group, Lafayette Square Institute, Propel, and others—whose insights and initiatives continue to inspire and inform our journey.

Together, we aim to shape policy development and ensure its effective implementation, in high-impact areas such as climate, clean energy, and financial inclusion. We invite you to join us in this collaborative effort to amplify impact and create lasting solutions.

A Bipartisan Approach for Lasting Change

Policy-Enhanced Impact Investing emphasizes collaboration across party lines to find common ground and build solutions that can garner broad support. By engaging with policymakers and stakeholders from diverse political backgrounds, we can develop robust and sustainable policy initiatives that benefit society as a whole. This bipartisan approach is central to creating a more inclusive and effective policy environment that aligns with our impact investing goals.

What We’re Pursuing—In Real Terms

For Investors, Limited Partners, and Asset Allocators:

  • You’ve committed to funds, companies, and strategies with meaningful impact theses. Are there legislative opportunities or challenges in the states where they operate that, if addressed, could significantly enhance their impact or returns?

For Asset Managers, Funds, and Companies:

  • Are there policy barriers, court cases, or political hurdles impeding your ability to achieve your impact objectives? Do you lack the time, resources, or expertise to fully address these issues?

We’d love to learn more! Email us at partner@policyenhanced.com.

How You Can Get Involved

We’re inviting impact investors, family offices, and those interested in driving meaningful change to join us in exploring Policy-Enhanced Impact Investing. There are multiple ways to participate:

  • Check Out This Conversation: We partnered with Sorenson Impact Foundation to host a recent conversation with Jacob Haar of Community Investment Management, Louis Caditz-Peck of the Responsible Business Lending Coalition, and Ryan Werder of Energy Action Fund on the opportunities to further impact through policy engagement. You can watch the video here.
  • Join an Upcoming Webinar: Learn about Policy-Enhanced Impact Investing and its potential to amplify impact at a series of webinars in January.
  • Explore Campaign-Focused Investment Menus: Consider our philanthropic and political investment options tailored to your interests.
  • Engage in Events: Participate in virtual and in-person gatherings designed to foster collaboration and innovation.
  • Build Relationships with Policymakers: Engage directly with policymakers and influence public policy development by participating in public events and private meetings.
Join Us in Amplifying Impact

By combining investment strategies with thoughtful policy engagement, we can maximize our collective impact and create a more equitable and sustainable future. We invite you to explore this journey with us and help shape the future of impact investing.

If you’re interested in learning more or joining us in this transformative initiative, please reach out to us at partner@policyenhanced.com. We will be sharing additional resources, events, and opportunities with those who opt in.

Liesel Pritzker Simmons is Co-Founder and Principal of Blue Haven Initiative.