Make Asia's wealth work harder for its poor

Six years ago, the term impact investing had yet to even be coined, much less developed into the viable opportunity for investors that it is today. Since then, hundreds of millions of dollars have flowed from US and European investors seeking both financial and social impact.

Now, with recent economic gains and shifts in global wealth, Southeast Asia is poised to be the next big hub for impact investing activity.

The need for this capital - which goes beyond the capacity of philanthropic dollars, development aid and corporate social responsibility to benefit poor and vulnerable people - is particularly urgent in Southeast Asia, where millions lack access to education, clean water and other essential goods.

In Hong Kong alone, more than 1.25 million people live in poverty, and the gap between rich and poor remains among the highest in the world. Rapid urbanisation and climate change will continue to exacerbate these challenges.

Fortunately, social entrepreneurs are increasingly launching innovative business models to address these problems. These social enterprises create opportunities for investors to provide jobs, better health-care outcomes, environmental protection and a range of other benefits.

Indeed, Avantage Ventures, an Asia-based social investment and advisory firm, estimates that if 1 per cent of all investments destined for Asian interests were funnelled into these kinds of double-bottom-line assets, all the current funding needs of social enterprises in Asia would be met.

To discuss these opportunities and the barriers that remain, nearly 100 investors, entrepreneurs, industry experts and philanthropists gathered in Hong Kong for a conference hosted by the Rockefeller Foundation and our partners last week. The Rockefeller Foundation has created a dedicated fund to support impact investing ideas that come from the discussions.