Prof Kunjana Malik, a faculty in the Finance & Accounting area of VPSM has co-authored an article on how the conventional investment model is undergoing changes. The summary of the article is reproduced below:
The impact investing ecosystem is a novel innovation across the financial world. It has always been contemplated if there is the willingness of accepting lower returns in exchange for the larger interest of the society and the investment decisions oscillate between negative and positive selections based on environmental, social, and governance (ESG) criteria on one side and financial returns on the other. Impact investing looks at the core of the products and services which are expected to have a positive impact on society and the environment. Agriculture, education, and healthcare have seen the highest number of investments by impact investors and return followed by financial services, housing, and skilling. Successful exits are an important component of a private equity deal. For impact investors, it is important to safeguard the company post the exit. When a private equity company exits there are several risks associated with the exit like drifting from the mission and business failure. To mitigate these risks, the investors must exit responsibly. The article is an attempt to discuss the status of Impact investing and the involvement of the traditional Private Equity and Venture Capital Investors in India carving out their relationship of exiting responsibly.