Fund administration’s pivotal position in impact investing

Monday, May 10, 2021 | By Claudia Krasnow – Senior Associate, Business Development, and Daniel Pallone – Vice President, Mortgage REIT & Loan Solutions

Fund administration’s pivotal position in impact investing

Investor interests, competitive edge and general principled beliefs have spurred a fresh wave of innovation in impact investing. Asset managers are keeping a finger on the pulse of the evolving international market and rising needs across the globe by uncovering ways that returns can be aligned with the interests of social and environmental causes. This strategy is on the precipice of worldwide change. The Global Impact Investing Network (GIIN) estimates that more than 1,340 organizations manage $502 billion in impact investing assets.

As the largest fund administrator, SS&C has a unique position in the impact investing realm. We are positioned to enable managers to operate under ideal efficiency so their teams can pour the utmost focus into successful and meaningful investments. We signed SunFunder as a client in 2016, which provides debt capital for solar energy in Sub-Saharan Africa. SunFunder has unlocked $143 million in funding for these solar projects and "has impacted 8 million people with improved energy access".  

This clean and reliable energy is bolstering the global economy by granting underprivileged regions the ability to develop and contribute. SunFunder co-founder, Ryan Levinson expressed his excitement about his partnership with SS&C by saying “The SS&C team’s dedicated high-touch service has increased our effectiveness as a firm. I’m looking forward to growing our relationship.” While not front and center of investment activity, the administrator is responsible for taking on the brunt of operations so the firm can be lean and nimble.

GIIN reported that 66% of impact investments earned market-rate returns according to their 2019 study (some impact investing firms aim for below-market returns as their main priority is performance and advancement of the cause). This performance indicates the viability of this investment strategy given cultural shifts towards social/environmental consciousness. Impact investing is charged with momentum and is projected to continue forging ahead in growth in 2021. If you’d like to learn more about the operational nuances of ESG, SS&C & KPMG register for our "The Rising Momentum of ESG - Operational Considerations for Investors and Managers." webinar with Sunfunder CFO, Ritesh Shah, on May 26 at 1:00 pm EST. 

Alternative Investments, Fund Administration

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