Fellow Travelers: Bringing Emerging Markets And Impact Investing Back Together

This article explores how impact investing has drifted away from its roots in emerging markets, with more capital flowing into developed economies and larger deals. The authors trace this shift to the entrance of major asset managers whose scale and mandates crowd out small, high-impact investments in emerging markets. They call for renewed dialogue among investors, underwriters, and development finance institutions to realign capital flows with the original promise of impact investing: supporting small and growing businesses that drive inclusive growth.