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Project
The role of impact investors in private firms
Impact investors have become increasingly active in the entrepreneurial finance ecosystem. Academic research on equity impact investing in private firms is largely missing. There is a lack of theoretical and empirical knowledge on how equity impact investors can successfully combine potentially competing financial, social and/or environmental goals. Additionally, we lack insights on the optimal financing mix of private firms who pursue both financial profit and have an environmental or social mission. The central research objective of this proposal is to increase our limited understanding of equity impact investing by addressing three largely unexplored questions: (1) Which private firms attract equity impact investors? (2) How do private equity impact investors interact with impact and traditional, non-impact investors? (3) What are the real effects of attracting equity impact investors? To answer these questions, we will mainly rely on quantitative research methods by constructing a unique, hand-collected dataset including equity impact investors and their portfolio companies across Europe. In study 1 and study 2 we will closely examine the UK market for impact investing. In study 3 we will study impact investors involved in B Corporations across Europe. Overall, we aim to provide fundamental insights in how equity impact investors can contribute to private firm development and can facilitate a transition to a more inclusive, equitable and sustainable economy.
Date:5 Jan 2022 → Today
Keywords:Impact investors, Private firms
Disciplines:Business economics
Project type:PhD project