Impact investing combines financial returns with social and environmental benefits. This $1.571 trillion market is reshaping industries like healthcare, education, and renewable energy. Here’s what you need to know:

• 94% of impact investors report meeting or exceeding financial expectations.

• Key sectors:

  • Healthcare: Improves access and outcomes while reducing costs.

  • Education: Funds infrastructure and tech for better learning.

  • Renewable Energy: Drives clean energy adoption and job creation.

• Top frameworks for measuring impact:

  • IRIS+: Standardized metrics for tracking results.

  • SROI: Assigns monetary value to social returns (e.g., $1 invested = $3 in social value).

Quick Takeaway: Impact investing proves you can achieve profit and purpose across industries. Dive in to see how healthcare, education, and renewable energy are changing lives while delivering returns.

ESG and Impact Investing Across Asset Classes with Goldman Sachs | April 23, 2019

Impact Investment Analysis by Sector

Impact investing requires strategies tailored to achieve both financial returns and measurable social benefits. The approach varies significantly across sectors like healthcare, education, and renewable energy, each offering distinct opportunities and challenges.

Sector Requirements and Market Conditions

Investment strategies are shaped by the specific needs of each sector, influenced by regulations and market conditions. For example:

• Healthcare: Investments often focus on improving access to care while navigating strict regulatory frameworks.

• Education: These projects typically require long-term commitments to see measurable outcomes.

• Renewable Energy: Investments must align with local utility regulations and grid standards.

A recent example comes from BlackRock Impact Opportunities (BIO). In January 2024, Lone Peak Dental Group received funding to expand its clinics and enhance dental care for underserved children. Similarly, a partnership with IGS Energy JV in Dublin, OH, enabled the launch of residential solar energy projects in underserved communities [2].

"We designed BIO to pursue opportunities that have historically been undercapitalized and, as a result, may offer differentiated sources of return." – Larry Fink, CEO, BlackRock [2]

Local partnerships often play a critical role in amplifying impact. For instance, the Low Income Investment Fund (LIIF) has invested over $1 billion in low-income communities across the U.S., demonstrating how collaboration can enhance both social and financial outcomes [1]. However, achieving these results requires not just tailored strategies but also precise tools to measure impact.

Impact Measurement Methods

Measuring impact effectively relies on frameworks designed to evaluate outcomes across sectors. Two widely used methodologies include:

These frameworks help investors track and quantify their impact. In healthcare, metrics might focus on patient outcomes and improved access. For education, data on student achievement is key. Renewable energy projects often measure carbon reduction and job creation.

According to recent data from GIIN, 88% of impact investors reported meeting or exceeding their financial expectations while achieving their social impact goals [1]. By concentrating on specific dimensions of impact and leveraging data-driven insights, organizations can refine their programs and maximize outcomes [3]. These methods provide the foundation for the in-depth case studies that follow.

Healthcare Impact Investment Results

Healthcare impact investments tackle systemic issues while achieving measurable benefits in both social and financial terms. Let’s dive into how initiatives like housing-linked services and data-driven health platforms are making a real difference.

UnitedHealthcare: Housing and Health Outcomes

UnitedHealth Group has taken a proactive approach by integrating affordable housing with health services to improve community well-being. To date, the company has poured over $1 billion into affordable housing, resulting in more than 25,000 homes across 31 states and Washington, D.C. [4][5].

The results speak for themselves:

• Routine Check-ups: 95% of residents adhere to regular check-ups, compared to the national average of 67%.

• Mental Health: Only 10% of residents report poor mental health, a significant improvement over the 22% rate seen in low-income groups.

• Healthcare Costs: Individuals with stable housing experience 50% lower healthcare expenses [4][5].

One standout project is the Aya Tower in East Point, Georgia, completed in April 2024. This $24 million renovation, developed in partnership with the East Point Housing Authority, Grady Health, and Goodwill of North Georgia, offers 88 affordable apartments to families earning between $30,000 and $40,000 annually [4][5].

"Supporting healthier and more equitable communities does more than just improve individual lives. Understanding the needs of communities can help make the whole system work better for everyone. We will continue to work with communities to provide services that fit their specific needs."
– Catherine Anderson, Senior Vice President of Health Equity Strategy at UnitedHealth Group [4]

TPG Rise Fund: Global Health Solutions

TPG Rise Fund is leading the charge in healthcare investments with a focus on expanding access and improving outcomes. Using Y Analytics, they evaluate and manage the social effects of their investments [6].

One notable example is their investment in Foodsmart, which addresses food insecurity and diet-related illnesses - issues that cost the U.S. economy over $1 trillion annually. Foodsmart has delivered impressive results:

"Foodsmart's unique virtual care platform meets these challenges by providing access to the largest network of Registered Dietitians in the US alongside medically tailored nutrition guidance to improve metabolic and whole body health. Foodsmart has proven to be the category leader from our longstanding thematic focus on the Foodcare space."
– Tom Verghese, Business Unit Partner and Healthcare Lead for The Rise Funds [7]

The Rise Fund’s strategy focuses on scalable solutions that can be implemented across different markets. Their Impact Platform currently manages $28 billion in assets across 80 companies, all with a mission to drive meaningful change [8][6].

Education Investment Outcomes

Investments in education have the power to reshape learning environments, improve infrastructure, and make quality education more accessible. By employing innovative funding models, these efforts not only enhance educational outcomes but also demonstrate how strategic capital can deliver both social impact and operational gains - similar to investments in healthcare and clean energy.

Laird Norton Family Foundation: Charter School Growth

Charter schools often allocate about 15% of their budgets to facilities. By targeting investments in infrastructure, funds can be redirected to classrooms and teaching resources, directly benefiting students and teachers.

The Turner-Agassi Education Facilities Fund is a prime example of impactful investment in education infrastructure. Here's a snapshot of its achievements:

One standout example is the Beatrice Mayes Institute in Houston, Texas. In 2025, the Equitable Facilities Fund (EFF) financed the transformation of an old building into a modern educational facility. The results were profound:

"EFF enabled Beatrice Mayes to build a proper facility, a transformation that moved teachers who had devoted decades to the school to tears. This isn't just about construction but about fairness and opportunity."
– Anand Kesavan, Founder and CEO of EFF [9]

EFF also played a key role in the growth of Zeta Charter School, providing low-cost financing that allowed the school to expand from 500 to 10,000 students - all while maintaining high standards of education [9].

While infrastructure improvements are crucial for growth, integrating technology into education offers another path to meaningful change.

Bridge International Academies: Tech-Based Learning

Bridge International Academies focuses on delivering affordable, tech-enabled education to underserved communities. Their approach combines low-cost tuition - averaging just $6 per student per month - with data-driven teaching methods.

Here’s how their efforts measure up:

The program leverages tools like custom Nook tablets, automated attendance systems, and real-time analytics to enhance instruction and improve efficiency.

"At Bridge, we've redefined the boundaries of education access. By providing low-cost education coupled with our innovative use of low-maintenance devices like custom tablets is breaking down barriers, ensuring that quality education is not confined by geography. It's about reaching the unreachable and making a lasting impact on communities."
– Griffin Asigo, Managing Director of Bridge Kenya [13]

Renewable Energy Investment Results

Investments in renewable energy show how smart financial strategies can deliver both environmental gains and community benefits while achieving measurable financial returns.

Advantage Capital: Solar Project Results

Since 2017, Advantage Capital has facilitated $1.6 billion in renewable energy transactions, adding 1.9 gigawatts of power to the grid - enough to supply electricity to over 1 million homes [14].

Some key projects highlight their community-focused approach:

In Puerto Rico, their investment in residential solar and battery storage has improved resilience against natural disasters [14]. Another example, the Hoosier Solar project in Indiana, showcases how renewable energy can boost rural economies through land lease payments and increased tax revenues [14].

"Our annual impact report demonstrates the power of targeted investing. For more than 30 years, we have invested in the businesses and communities that are often overlooked by traditional forms of capital and we have seen how flexible financing powers growth and enriches lives." - Steven Stull, President, Advantage Capital [15]

Advantage Capital's portfolio also delivers notable social benefits:

• 98% of employees receive health benefits

• 94% of jobs are accessible without requiring a college degree

• 98% of employees have opportunities for wealth creation

• 77% of workers receive professional training [15]

In California, their renewable energy investments are helping to modernize the grid and create jobs, demonstrating the wide-reaching impact of clean energy initiatives.

California Clean Energy Fund: Grid and Jobs

California's clean energy efforts are transforming the state’s power infrastructure while generating significant employment opportunities. The state’s commitment to achieving 100% zero-carbon electricity sales by 2045 has driven investments in grid modernization [17]. As of now, 61% of retail electricity sales come from non-fossil-fuel sources, with renewables accounting for 39% of the state’s energy mix [17].

Recent progress includes:

• 16,000 MW of new energy resources added since 2020

• 18,800 MW of clean resources planned by 2028

• A $30 million grant for a 100-hour iron-air battery storage project in Mendocino County [17]

The clean energy sector is also fueling job growth at an impressive pace:

"Nearly every week, new clean energy projects are being added to the grid, moving us closer and closer to our goal of a clean, affordable and reliable energy system in California." - David Hochschild, CEC Chair [17]

California's dedication to renewable energy also extends to tribal communities, with significant funding directed toward long-duration storage projects for groups like the Paskenta Tribe of Nomlaki Indians and Viejas Tribe of Kumeyaay Indians [17].

Multi-Sector Investment Methods

Expanding on the sector-focused examples mentioned earlier, multi-sector approaches combine funding and management strategies to maximize outcomes.

Combined Funding Approaches

Blended finance brings together public, philanthropic, and private funds to amplify the reach of impact investments. This approach has already mobilized around $249 billion for sustainable development projects in developing countries [21].

Here’s a snapshot of funding trends across key sectors:

One standout example is the SDG Impact Finance Initiative (SIFI), launched in 2021. This public–private partnership aims to attract $1 billion in private capital by 2030. It employs creative tools like first-loss investments and grants to strengthen the impact investing ecosystem [22].

"Mobilisation is where a little concessionality can go a long way in attracting private finance into projects like renewable energy, clean transport, waste management, and industrial decarbonisation."

• Umberto Marengo, Impact Manager at British International Investment [24]

Blended finance models like these lay the groundwork for coordinated efforts among multiple stakeholders.

Multi-Party Project Management

Effective cross-sector collaboration is another key element of multi-sector investment. A great example is HealthierHere in King County, Washington. This initiative uses a 26-member board where participants prioritize collective, sector-wide goals over individual organizational interests [26].

Three critical factors contribute to the success of such projects:

• Stakeholder Mapping
  This involves identifying and categorizing stakeholders based on their influence, interest, and potential impact. It ensures resources are allocated where they’re most needed [19].

• Communication Framework
  Clear and consistent communication keeps all parties aligned. For instance, the Quality Education India Development Impact Bond shows how strong communication frameworks can support complex, multi-stakeholder initiatives [23].

• Impact Measurement Integration
  Centralized data hubs, like the Linked Information Network of Colorado (LINC), allow policymakers and service providers to assess outcomes across systems. This enables data-driven decisions to improve results [25].

"Having £1.4tn of assets under management helps to get yourself heard. We are a universal owner, which means we hold shares in every listed company. As a shareholder, we have a right to speak to the company, we have a seat at the table and that's really important. We could be silent, but we talk to the company and challenge them."

• Maria Larsson Ortino, Global ESG Manager at Legal & General Investment Management [20]

Conclusion

Case studies in healthcare, education, and renewable energy clearly illustrate that impact investments can yield both strong financial returns and measurable social benefits. These examples show how carefully planned strategies can balance profitability with meaningful change across various industries.

Here are some key factors driving these successes:

These findings emphasize the effectiveness of cross-sector strategies and blended financing models. A standout example is the Housing Partnership Equity Trust (HPET), which leveraged the MacArthur Foundation's stand-by purchase agreement to secure $244 million for sustainable housing investments by September 2016[27].

"Increased awareness of successful examples of investor collaboration through guarantees – and blended capital more broadly – could help spur much-needed, additional investment into solutions to pressing social and environmental problems. There is an enormous opportunity for different types of investors to collaborate to amplify impact."

• Amit Bouri, CEO and co-founder of the GIIN[27]

Recent insights from Blue Earth Capital further validate this approach. A survey revealed that 83% of impact investors achieved or exceeded their financial return goals, while 96% met or surpassed their social and environmental targets[28].

The future of impact investing looks especially promising in areas like energy efficiency, community-based renewable energy, healthcare access, food security, and small-business lending platforms[27]. These integrated solutions - addressing challenges like climate change and poverty - highlight the sector's potential to tackle global issues while delivering competitive financial outcomes.

FAQs

How do impact investors evaluate the success of their investments in sectors like healthcare, education, and renewable energy?

Impact investors evaluate their investments by looking at two key factors: financial returns and social or environmental results. To track these outcomes effectively, many rely on standardized tools like IRIS+ to monitor metrics tailored to specific sectors and their objectives.

For instance, in healthcare, success might be gauged by better patient outcomes, broader access to medical services, or lower healthcare costs. In education, it could mean higher student performance, increased graduation rates, or better access to learning tools. When it comes to renewable energy, common measures include reduced carbon emissions, improved energy efficiency, or the growth of clean energy usage.

By balancing financial gains with measurable positive impacts, these investors aim to drive change that truly makes a difference.

What challenges do impact investors face when navigating sector-specific regulations and market conditions?

Impact investors often encounter hurdles when trying to align their investments with the specific rules and market conditions of various industries. Take healthcare, for instance - investments in this sector must navigate strict regulations related to patient safety and privacy. On the other hand, renewable energy projects face a different set of challenges, such as navigating a patchwork of state and federal policies that can significantly affect funding and project viability. These differences mean investors need to stay informed and flexible to adapt to each sector's demands.

Beyond regulatory issues, market instability and changing political landscapes add another layer of complexity. These factors can lead to uncertainty, influencing both funding opportunities and the long-term success of projects. Another major challenge is proving results. Impact investors are expected to demonstrate not just financial gains but also meaningful social and environmental benefits - outcomes that are often tricky to measure and report. Overcoming these obstacles requires a thorough understanding of industry-specific regulations and a keen eye on evolving market trends.

What is blended finance, and how does it boost impact investments in developing countries?

Blended finance is an approach that mixes public or philanthropic funding with private investment to make high-risk projects more appealing and encourage capital flow. This strategy is especially useful in developing countries, where private investors might hesitate due to the combination of elevated risks and modest returns.

By offering concessional funding as a safety cushion, blended finance helps draw private sector investment into sectors like healthcare, education, and renewable energy. This not only increases the amount of money invested but also improves the balance between risk and potential returns, making these projects far more attractive to investors. So far, this method has successfully directed billions of dollars into projects that support sustainable development, proving its ability to spark meaningful progress in areas that need it the most.