Three Things: What Is Impact Investing?

Impact investing is not charity. In fact, it came about because of the failure of philanthropy to effectively address social problems.

The “investing” part of the concept is essential to how it makes impact, and investors may be attracted by the solutions companies offer and the financial return; this means organizations aren’t dependent year to year on the whims of donors, who may be well-intentioned but out-of-touch with on-the-ground problems. Impact investing is about long-term, sustainable solutions to improve the world.

In this Three Things video, Darden Professor Elena Loutskina discusses three important aspects of impact investing.

About the Expert

Elena Loutskina

Peter M. Grant II Bicentennial Foundation Professor of Business Administration

Loutskina is an authority on banking and securitization. She researches corporate financing, venture capital and innovation, and earnings management.

Her main research focus is on the impact of the securitization markets on the financial management of financial and nonfinancial corporations. Loutskina also explores the role of corporate venture capitalists in increasing the value of entrepreneurial firms. She has been invited to present her research at the Federal Reserve System, Federal Reserve Board, International Monetary Fund, European Central Bank and Banque de France.

Loutskina’s most recent papers in top finance journals include “Corporate Venture Capital, Value Creation and Innovation” (with Thomas J. Chemmanur and Xuan Tian) in the Review of Financial Studies and “Financial Integration, Housing and Economic Volatility”(with Philip E. Strahan) in the Journal of Financial Economics.

B.S., Belarus State University; M.S., Stat University of New York; Ph.D., Boston College

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