A Conversation with Maya Chorengel, The Rise Fund
Maya Chorengel is a managing partner of The Rise Fund, a global impact investing fund with $2.1 billion under management that is part of global alternative asset firm TPG. Here she tells us more about what makes for a successful impact investor.
Hear more from Chorengel at the Bloomberg Sustainable Business Summit in New York on October 22, where corporate executives, influential investors, and prominent experts will discuss emerging trends and opportunities in sustainability.
- What does it mean to be an impact investor?
We are at a critical moment in global development, and we have an opportunity to leverage investment to create significant positive impact on society and the environment. That opportunity is driven by a generation of consumers with new demands of business and the private sector, and entrepreneurs focused on building businesses that create positive change. This shifting demand dovetails with an increasing need for impact-focused capital to help reach the United Nation’s Sustainable Development Goals.
Impact investors are committed to seeking out companies that drive social and environmental impact alongside growth. We partner with innovative entrepreneurs to build successful businesses that drive meaningful, measurable and positive impact on society and the environment. Ultimately, our goal at The Rise Fund is to find companies where growth in the core business will drive more positive impact.
- How do you measure success in the impact investing space?
Success means expanding the reach of capital in order to help a new generation of entrepreneurs build profitable businesses that deliver positive impact, and ultimately help the world achieve the U.N. Sustainable Development Goals. It will take more than $2.5 trillion per year to meet these goals; and although global private capital markets control more than $200 trillion in assets, less than 1% of that is committed to impact.
To accomplish this, we need to hold ourselves accountable and build new assessment tools to ensure that social impact can be measured and quantified, which will help ensure that each dollar invested is achieving the maximum amount of impact possible. The includes rooting our investment decisions in research about what works to create impact and providing investors and capital allocators the tools they need to effectively channel capital towards positive change.
- How can an individual investor without the resources of an investing firm begin to incorporate impact investing strategies into their personal investments?
There are several industry organizations and institutions that provide resources to accelerate the development of impact investing. For an individual investor, the key to incorporating impact investing strategies lies in applying evidence to link financial decisions to positive social impacts. Careful measurement enables much more than score keeping–it enables us to make better, more successful investments.
An individual investor can also assess their current portfolio from an impact lens. It’s critical to understand the industry—the trends and demands from activists, NGOs, and stakeholders—to determine which investments pose potential risk and which can drive meaningful impact and financial returns.