Investors are increasingly seeking to do well by doing good, and a growing number of funds are emerging to facilitate that goal. Social impact investment, which aims for both financial returns and positive social change, is gaining traction across Latin America and Europe.
Impact Investing Gains Momentum in Brazil, Spain and Beyond
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A new wave of funds is channeling capital into ventures tackling challenges from healthcare access to youth unemployment.
- Brazil’s Vox Capital is pioneering impact investments in education, health, and inclusion.
- The Acumen Latin America Early Growth Fund supports initiatives in agriculture, energy, and basic services.
- In Spain, organizations like COFIDES and Spain NAB are driving growth in social impact investment.
Social investment managers are demonstrating, with data, how invested capital is changing company human resources policies, reducing carbon emissions and water usage, or increasing opportunities for vulnerable youth. This focus on measurable impact is attracting investors who want to see tangible results alongside financial gains.
Brazil Leads with Focused Impact Funds
In Brazil, Vox Capital is a pioneer in impact investment, specializing in projects that improve education, health, and inclusion. Their 2024 investment portfolio includes Isa Lab, a platform expanding access to home healthcare services, and Mevo, a digital health platform streamlining prescription digitalization and at-home pharmaceutical assistance.
Regional Funds Expand Reach
The Acumen Latin America Early Growth Fund operates across Colombia, Mexico, and Peru. A joint initiative of the NGO Acumen and the Development Bank of Latin America (CAF), the fund focuses on positive impact in sectors like agriculture, energy, health, and basic services. Investments include support for small Colombian coffee and cocoa producers and programs aimed at reducing youth unemployment in the region.
What is social impact investment? It’s a strategy that intentionally seeks to generate positive, measurable social and environmental impact alongside a financial return.
Spain Sees Sustained Growth in Impact Investing
In Spain, entities such as COFIDES, a public-private partnership linked to the Ministry of Economy, Commerce and Business, and associations like Spain NAB (a member of CSG) are actively promoting social impact investment. According to the latest Spain NAB report, both direct investment and impact banking financing have experienced consistent growth.
Notable projects supported in Spain include Kanjo and BCN-Resol, start-ups developing technological applications to prevent and reduce violence against children and adolescents. Irisbond, a company designing digital devices enabling communication for individuals with special needs through eye movements, is also receiving support.
