Achieving impact for impact investing

Investing for profit and the philanthropic use of financial resources are commonly perceived as irreconcilable alternatives. Nevertheless, recent publications and debates have seen a rise in awareness of impact investing, which is defined by yielding both a social and a financial return. A current example of impact investing would be profit-oriented investments in additional integration programs for asylum seekers in Germany, which could yield a high social benefit. Building on the example of Germany, the following report cross-examines this hybrid investment class and its relevance and performance in developed markets. An assessment of the status quo of impact investing and potential development paths is intended to shed some light on opportunities and restrictions for Germany and similar markets.