In my first post we looked at some of the challenges involved in developing a social finance portfolio, managing its risks and measuring its returns. Both of these posts are based on the white paper titled “Enabling Social Innovation through Development Impact Investing”, co-authored with Frances Westley and Olaf Weber.
Developing an investment portfolio is a challenge. It involves taking a diverse set of investment opportunities, comparing them to each other, and estimating the potential returns and risks involved in each. Once you’ve done all this, you then have to decide which you will put your money into, which can be an additional challenge if the entrepreneurs requesting investment need a minimum amount to get their projects of the ground.