BayTree works with early stage companies that create impact to fulfill their capital needs
Impact Investing is generally defined as investing with the objective of achieving both a financial return and a positive economic, social and/or environmental impact. Impact investing has been called "investing with purpose," since it actively pursues positive social change, but not through philanthropy. Rather, impact investing is about making profit-seeking investments, using traditional debt and equity instruments, which support companies that have the power to change their communities and the world for the better.
The world is currently working towards a set of ambitious targets for addressing global challenges – Sustainable Development Goals (SDGs) and the Paris Climate Agreement. The cost of implementing these agreements, however, are astronomical. Over the next decade, the UN estimates that implementing the SDGs will cost between $50 trillion and $70 trillion; the Paris Climate Agreement will cost over $12 trillion over 25 years. The critical question is: how will we pay for it all? The answer is to leverage innovative finance mechanisms that can tap into the over $200 trillion in private capital invested in global financial markets and ensure that capital is deployed effectively towards development efforts.
We believe that impact investing represents a significant opportunity to bring the innovation, incentives, and resources from business to the social sector.