SELECTRA Management Company S.A. is actively engaged in the promotion and management of Impact Investing funds.
Impact Investing may be defined as a set of strategies and investment instruments in Companies, Organizations, and Funds with the intention of generating a financial return and other results which may not purely be definable in economic terms. Impact Investing has therefore the double objective of achieving significant financial results, along with realizing social, environmental and cultural goals, in accordance with the preferences and the intentions of the investor. It is the intentions of the investor that characterize and differentiate Impact Investing from other “socially responsible” investments.
How does the Impact Investing work?
From a technical point of view, the same basic financial instruments and capital categories typical of the most traditional sectors are identically applicable to Impact Investing. Impact Investing may in particular operate through different financial vehicles such as, for example, Donations, Venture Capital, Risk Capital and Mezzanine Debt or a combination of these, in order to obtain financing and to pursue objectives of social impact (the so-called “hybrid capital”). Impact investments may be directed to both emerging and developed markets. They may also direct capital towards geo-demographic areas presenting social, environmental and/or cultural complexity.