Deep dive into IIC (Impact Investors Council)

Executive Summary

• The Impact Investors Council (IIC) in India has over 65 members, including impact investment firms, venture capital funds, family offices, foundations, banks, and development agencies, with both Indian and international representation.
• Research suggests the IIC has achieved significant growth in impact investing over the past decade, with annual reports showing increased investments and deals, and advocacy for supportive policies.
• It seems likely that criticisms include challenges in standardizing impact measurement, limited capital access for social enterprises, and high dropout rates among family office investors.

Overview of IIC Members

The IIC, based in India, comprises 64 members, a diverse group of organizations dedicated to impact investing. These include impact investment firms such as Aavishkaar and Caspian (equity) and Northern Arc and Trifecta Capital (debt), venture capital funds like Elevar Equity and Lok Capital, family offices including The Raintree and Waterfield Advisors, and foundations such as the Michael & Susan Dell Foundation and Rockefeller Foundation. The council also features professional service firms like Nishith Desai Associates and Deloitte India, as well as nonprofit organizations like Habitat for Humanity and National Skill Development Corporation. Geographically, while primarily India-focused, the IIC includes global members with an interest in the Indian market, such as ABC Impact, Acumen, and British International Investment. Link to complete member list by category. This diversity ensures a robust network, facilitating cross-sector collaboration and investment flows, though exact numbers per category are not publicly detailed beyond these examples.

Achievements Over 10 Years

Over the past decade, the IIC has made notable strides in strengthening impact investing. It has released annual reports, such as the 2020 report showing $2.6 billion across 243 equity deals, and conducted research on debt financing and sector-specific trends. The IIC has also engaged with policymakers like the Ministry of Finance and SEBI to advocate for supportive policies, facilitated investor-enterprise connections through events, and promoted impact measurement practices, with members cumulatively investing over $3 billion in more than 400 social enterprises.

Criticisms and Challenges

Despite its achievements, the IIC faces criticisms, including the lack of standardized impact measurement frameworks, which hinders comparison across investments. Access to capital remains a challenge, with 57% of social enterprises identifying it as a barrier. There’s also a high dropout rate among family offices and HNIs, with 80% discontinuing after initial investments, and slow progress in developing innovative financing like impact bonds, with only a few implemented to date.

Detailed Analysis

The Impact Investors Council (IIC), headquartered in India, is a pivotal industry body established to bolster impact investing, aiming to channel private capital towards bridging the social investment gap. Incorporated on December 19, 2014, and envisioned in 2013, the IIC has grown to encompass over 65 members, reflecting a diverse ecosystem of stakeholders. This note provides a comprehensive analysis of its membership, achievements over the past decade, and the criticisms leveled by detractors, based on available research and reports.

Achievements Over the Past Decade

Since its inception, the IIC has achieved significant milestones, particularly over the last 10 years, as of March 30, 2025. Key accomplishments include:

• Community Building and Membership Growth: Starting with around 40 members in 2018, as noted in an AVPN profile, the IIC now supports over 65, fostering a community that has cumulatively invested over $3 billion in more than 400 social enterprises, according to its LinkedIn profile.
• Research and Reporting: The IIC has published annual reports on impact investment trends, providing critical data. For instance, the 2020 report (“2020 in Retrospect: India Impact Investment Trends”) revealed $2.6 billion across 243 equity deals with 13 successful exits, while the 2021 report showed $6.8 billion across 345 deals, indicating growth despite challenges like the COVID-19 pandemic. These reports are available at Research Publications.
• Policy Advocacy and Government Engagement: The IIC regularly engages with regulators, including the Ministry of Finance, SEBI, and RBI, to advocate for policies supporting impact investing, as mentioned in its “Become a Member” page (Become a Member). This includes facilitating discussions on regulatory frameworks and incentives.
• Facilitation of Investments: Through events like Prabhav and LP-GP meetings, the IIC connects investors with social enterprises, enhancing capital flow. Its newsletter highlights initiatives like EMPACT, an e-mobility program, further supporting sector-specific investments (EMPACT Program).
• Promotion of Impact Measurement: The IIC emphasizes impact measurement and management, crucial for scaling investments, with reports like “Climate Tech Investment Trends in India: A 2022 Retrospective” aiding sector analysis (Research Publications).

These efforts have positioned India as a fertile ground for impact investments, with reports like the 2023 World Economic Forum article noting acceleration in later-stage funding opportunities (WEF Article).

Criticisms and Detractors’ Perspectives

Despite its achievements, the IIC and the impact investing sector face several criticisms, often highlighted in research and industry analyses:

• Lack of Standardized Impact Measurement: A significant challenge is the absence of a well-accepted definition and framework for measuring impact, as noted in a 2020 NextBillion article. This lack of cohesion hinders comparison and trust, with detractors arguing the IIC has not sufficiently standardized metrics (NextBillion Article).
• Limited Access to Capital: A 2019 Brookings report identified that 57% of social enterprises struggle with access to debt or equity, a barrier the IIC has yet to fully address, potentially due to regulatory and market constraints (Brookings Report).
• High Dropout Rates Among Family Offices and HNIs: A 2021 Waterfield Advisors report revealed that 80% of family offices and HNIs discontinue impact investing after initial investments, citing inability to demonstrate impact results (58%) and lack of common frameworks, suggesting the IIC needs to enhance investor education and retention strategies (Waterfield Report).
• Transparency and Evidence-Based Practices: Critics argue for greater transparency, with the Brookings report emphasizing the need for an evidence-backed knowledge base, which the IIC is seen as slow to develop, potentially undermining investor confidence.
• Slow Progress in Innovative Financing: Impact bonds remain nascent, with only two contracted in education and one in healthcare, as per the Brookings report, indicating slow adoption despite the IIC’s advocacy efforts, which detractors see as a missed opportunity for scaling impact.

These criticisms highlight areas where the IIC must innovate, particularly in standardizing practices and addressing investor retention, to fulfill its mission effectively.

Family Office Engagement

An unexpected detail is the significant engagement of family offices, contributing only 3% of total impact capital ($279.5 million from 2016-2020), yet showing polarized views on financial returns versus impact, with 52% believing they can coexist, per the Waterfield report. This nuanced investor base offers both opportunities and challenges for the IIC in scaling impact investing.

IIC Member List by Category