Professor Shaughnessy, Executive Professor Entrepreneurship & Innovation Group at Northeastern University, talks about the 3rd way wealthy individuals are making investments. The 3rd way represents social impact investing (don’t forget about environmental impact), a sector that is estimated to represent $200bn in investment capital.
While this is an impressive number please note that social impact investing currently accounts for less than one-half of 1 percent of all assets managed globally.
That said, Professor Shaughnessy holds high expectations as he predicts investor demand will cause the impact investing market to explode over the next 10-30 years. He urges current industry leaders, such as JP Morgan and Credit Suise, along with the lagging financial service sector (known as the impact investing disconnect), to step up their game if they don’t want to miss the boat.