THE ROLE OF PRIVATE CAPITAL AND THE TOOLS FOR ITS PARTICIPATION IN THE DEVELOPMENT OF IMPACT INVESTING
Abstract
The article examines the role of private capital and its instruments in the development of impact investing as an approach aimed at achieving measurable social and environmental outcomes alongside financial returns. Based on international practice and market data, key drivers and constraints of scaling impact investments are identified. The analysis covers private equity, venture capital, sustainable debt instruments and blended finance mechanisms, highlighting their different levels of managerial influence, risk and scalability. Particular attention is paid to the role of family offices as providers of patient and catalytic capital. The study emphasizes the importance of transparency, standardized impact measurement and credible reporting in reducing impact washing risks and enhancing investor confidence in impact-oriented projects.
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Morgan Stanley Institute for Sustainable Investing. Sustainable Reality 2025. Sustainable Funds Deliver Strong Returns in 1H 2025. Morgan Stanley report. URL: https://www.morganstanley.com/content/dam/msdotcom/en/assets/pdfs/MS_ISI_Sustainable_Reality_2025_report-FINAL.pdf
Boston Consulting Group (BCG) (2025). Sustaining the Private Capital Opportunity in Climate. BCG report. URL: https://web-assets.bcg.com/pdf-src/prod-live/sustaining-the-private-capital-opportunity-in-climate.pdf
Laurent Y. Impact Investing Meets Private Equity: The Next Trend in Value Creation & AUM? Portfolio for the Future (CAIA Association Blog). URL: https://www.caia.org/blog/2025/04/03/impact-investing-meets-private-equity
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Morgan Stanley. Sustainable Debt Issuance Trends 2024–2025. Morgan Stanley Insights. URL: https://www.morganstanley.com/insights/articles/sustainable-debt-issuance
United Nations (2023). With Trillions Needed to Achieve Sustainable Development Goals, World Leaders Gather to Set Out Bold Solutions. UN News. URL: https://news.un.org/en/story/2023/07/1138307
Sightline Climate. Climate Tech Investment Trends 2025. Research note. URL: https://www.sightlineclimate.com/research
Emerson, J. (2003). The Blended Value Proposition: Integrating Social and Financial Returns. California Management Review, 45(4), 35–51. URL: https://journals.sagepub.com/doi/10.2307/41166187
Cohen, R. (2019). Impact: Reshaping Capitalism to Drive Real Change. Harper Business, New York. URL: https://www.harpercollins.com/products/impact-ronald-cohen
Brest, P., Born, K. (2013). Unpacking the Impact in Impact Investing. Stanford Social Innovation Review. URL: https://ssir.org/articles/entry/unpacking_the_impact_in_impact_investing
Höchstädter, A., Scheck, B. (2015). What’s in a Name: An Analysis of Impact Investing. Journal of Business Ethics, 132(2), 449–475. URL: https://link.springer.com/article/10.1007/s10551-014-2327-0
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