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For a global impact investing market that the GIIN estimated at $1.164 trillion in 2022, looking at all the Phenix Impact Database metrics, there is no doubt that there is a clear US-European divide.
Perhaps the starkest difference is in number of funds dedicated to, and assets invested in, impact in the public equity markets, which stands at 71% and 86%, respectively. There are likely to be a number of potential reasons for this.
Culturally, European investors see financial inclusion as an important part of being a developed world and, as such, are often willing to accept a marginally reduced rate of return to achieve social and environmental goals.
Meanwhile, Americans are big philanthropists. The global philanthropy market was estimated to be £182 billion, according to Barclays Philanthropy Outlook 2021, with the UK giving £11.3 billion in 2020, and US charities receiving $499.33 billion in 2022.
Report Highlights from our impact database:
- 33% more EU funds than US funds
- 44% more European impact investors than US impact investors
- 71% more public equity funds in Europe compared to the US
- 86% more allocated to public equity by European vs US investors
- 58% of the US fund universe are private equity funds compared to 42% for European funds
- 62% more assets raised by European vs US private equity funds
- 88% more public equity assets raised by European funds vs US ones
Download the report (pdf) on request
