Based on an analysis of the seven key problems facing institutional investors wishing to participate in impact investing, we provide a series of recommendations for key industry players and public policy-makers. We propose a focus on financial instruments, host regulatory mechanisms and policy initiatives. In particular, we suggest that innovations in financial instruments and fund structures may help resolve the primary challenges faced by pension and sovereign wealth funds, while government support can help reduce the barriers related to secondary problems. We also discuss an ecosystem approach to impact investing and entrepreneurial activity and apply this framework to the Indian ecosystem.
