How to Become an Impact Investing Analyst (2024)

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OVERVIEW

What Is an Impact Investing Analyst?

An impact investing analyst evaluates investment opportunities based on both financial and impact considerations. They’re responsible for conducting research, analyzing data, and measuring the social and environmental impact of potential investments.

In comparison to traditional investing, which focuses solely on generating financial returns, impact investing takes a more holistic, often philanthropic approach. In traditional investing, utility or benefit comes from consumption, not investment. In impact investing, utility or benefit to an investor varies depending on the investment's environmental, social, and governance (ESG) impact along with its inclusion impact.

To become an impact investing analyst, most employers expect you to hold aMaster of Business Administration(MBA) degree. Relevant experience in finance, data analysis, or a related field is also typically required. Future impact investing analysts should also focus on developing strong analytical skills, excellent communication skills, attention to detail, and a passion for creating positive impact is important to perform successfully in this role. In order to be successful in this role, Impact investing analysts often need to explain complex financial and impact data to a variety of stakeholders.

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RESPONSIBILITIES

What Does an Impact Investing Analyst Do?

Impact investing analysts support day-to-day impact measurement and management work. This includes supporting annual impact data collection and analysis and contributing to annual impact reports. Impact investment analysts are responsible for:

  • Supporting deal sourcing and initial evaluations.
  • Performing detailed due diligence on potential impact investments, including impact forecasting, management, and product, market, and financial analysis.
  • Helping refine back-end investment infrastructure through nurturing co-investor networks of like-minded funds, accelerators, and corporates.
  • Conducting sector and industry analyses to help sharpen investment focus.
  • Helping review and manage a portfolio of global, high-impact ventures using innovations in philanthropy to solve pressing social and environmental challenges.
  • Analyzing and distilling portfolio findings.

Where Does an Impact Investing Analyst Work?

Impact investing analysts can work in a variety of settings, including larger companies, organizations, and investment agencies. The need for impact investing analysts is becoming increasingly important as more companies and organizations recognize the value of investing in socially and environmentally impactful ventures.

The demand for impact investing analysts is growing across a range of industries and sectors as more organizations seek to integrate impact investing into their investment strategies. As a result, there are many opportunities for impact investing analysts to work in a variety of settings and make a positive change through their work.

EDUCATION & BEST DEGREES

How Do I Become an Impact Investing Analyst?

Becoming an impact investing analyst requires a combination of relevant education and work experience. It’s required that aspiring professionals in this field earn a bachelor's degree in finance or economics, but candidates with MBAs are typically preferred by employers. Since the role of an impact investment analyst is not entry level, applicants should first work or intern in finance, data analysis, or similar positions in the financial industry.

To become an impact investing analyst, you can follow these steps:

1.Earn a bachelor's degree infinance,economics, or a related field. This will provide you with a foundational understanding of finance,accounting, and investment analysis.

2.Get an internship in finance to gain relevant skills and learn about investing. This will give you practical experience and help you develop skills in financial modeling, data analysis, and investment analysis. If you are particularly interested in creating a positive impact in your career, consider seeking a role within a philanthropic foundation.

3.Earn a master's degree in finance or anMBA. This advanced degree will provide you with a deeper understanding of finance, investment analysis, and impact investing and will make you more competitive in the job market.

4.Apply for an entry-level job in finance. Some examples of entry-level positions include financial analyst, investment analyst, research analyst, data analyst, junior portfolio manager, and operations analyst. Working in any of these roles can help you gain the skills and experience you need to eventually become an impact investment analyst. Look for opportunities with organizations that are committed to galvanizing change, such as impact investment funds, philanthropic foundations, or impact-driven companies.

Specialized certifications can also help you accelerate your career in impact investing. Organizations such as theGlobal Impact Investing Network(GIIN) offer certification programs for impact investing professionals. There are also many courses and workshops available on topics such as impact measurement and management, social entrepreneurship, and sustainable finance.

Best Degrees for aImpact Investing Analyst

Finance – B.S.

This online finance program is career-focused so you will gain relevant...

This online finance program is career-focused so you will gain relevant industry skills.

  • Time:70% of graduates finish similar programs within 42 months.
  • Tuition:$3,575 per 6-month term.
  • Courses: 41 courses in this program.

Some careers and jobs this business degree will prepare you for:

  • Financial analyst
  • Finance director
  • Investment banker
  • Insurance agent
  • Accountant

The competency-based model at WGU allows you to move as quickly as you can master the material, and do your coursework on your schedule. Flexibility is key with the B.S. in finance at WGU.

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Accounting – B.S. Business Administration

Have a knack for numbers or fine-tuning finances?...

Have a knack for numbers or fine-tuning finances?

  • Time:70% of graduates finish within 42 months.
  • Tuition:$3,755 per 6-month term.
  • Courses: 41 courses in this program.

Some careers and jobs this business degree will prepare you for:

  • Accounting manager
  • Financial director
  • Vice president of finance and operations
  • Chief financial officer
  • Forensic accountant

Take your first step toward CPA certification and learn how to use GAAP, ledgers, and journals.

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Accounting – M.S.

Become better qualified to pursue a greater variety of public and private...

Become better qualified to pursue a greater variety of public and private accounting positions:

  • Time:72% of grads finish within 24 months.
  • Tuition:$4,755 per 6-month term.
  • Courses: 10 total courses in this program

Some careers and jobs this business degree will prepare you for:

  • Accountant
  • Accounting manager
  • Internal audit manager
  • Senior accountant
  • Other specialized finance roles

This MAcc program is designed to prepare you for the CPA exam and also the CMA or CIA exams.

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How Much Does an Impact Investing Analyst Make?

$49,153

Glassdoor reports that impact investment analysts or associates earn$49,153 per yearon average. The top 25% of earners make between $63,000 and $83,000 per year. Salaries for impact investing analysts can vary depending on factors such as location, experience, and place of work.

What Is the Projected Job Growth?

5%

The Bureau of Labor Statistics projects a 5% growth rate for financial and investment analysts, including impact investing analysts, from 2019 to 2029, which will result in54,350 new jobs.

The BLS attributes this growth to the increasing demand for financial analysis and economic advice as businesses seek to make more informed investment decisions and improve their financial performance. In addition, the growing interest in sustainable finance and impact investing is expected to create new opportunities for impact investing analysts in the coming years.

SKILLS

What Skills Does an Impact Investing Analyst Need?

Being an impact investing analyst requires a unique set of skills and abilities that combine financial analysis with social and environmental impact assessment. Impact investment analysts must:

  • Enjoy data analysis and writing:An impact investing analyst must be comfortable working with data, conducting research, and analyzing information. They should be able to communicate findings effectively through clear and concise writing.
  • Be proficient in Excel, relational databases, and data visualization tools:These professionals should have strong technical skills, including proficiency in tools such as Excel, Airtable, Power BI, Salesforce, and other databases and visualization tools to collect and analyze data.
  • Remain open to different perspectives and learning new methods of analysis:Impact investing demands a diverse range of perspectives, and analysts must be open to learning new methods and working with various stakeholders throughout their career.
  • Possess skills in prioritizing competing demands:A skilled impact investing analyst can juggle competing priorities, meet deadlines, and work effectively with teams that have varying priorities and perspectives.
  • Be intellectually curious and ready to take risks:Impact investing requires creativity, innovation, and a willingness to think big in pursuit of mobilizing change. As such, professionals in this field should be intellectually curious, able to generate new ideas, and willing to take calculated risks.
  • Have a “can-do” attitude and be focused on implementing solutions:An impact investing analyst has a positive, solution-focused outlook, works collaboratively with others, and remains committed to achieving positive social and environmental outcomes through their work.

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How to Become an Impact Investing Analyst (2024)

FAQs

How do I become an impact investing analyst? ›

Earn a bachelor's degree in finance, economics, or a related field. This will provide you with a foundational understanding of finance, accounting, and investment analysis. 2. Get an internship in finance to gain relevant skills and learn about investing.

What questions are asked in impact investing interview? ›

Impact investing interview sample questions

How do you demonstrate a commitment to social and environmental change in your own life? Tell me about a time you overcame a significant challenge on the job. When you are stuck on a project, what is your go-to response? Are you comfortable learning new skills?

Why are you passionate about impact investing? ›

As Amy put it, impact investing is “giving people the chance to make decisions over where their money is invested, and ensure it reflects their values and helps to solve problems in the world”.

Why do you want to get into impact investing? ›

The growing impact investment market provides capital to address the world's most pressing challenges in sectors such as sustainable agriculture, renewable energy, conservation, microfinance, and affordable and accessible basic services including housing, healthcare, and education.

What qualifications do I need to be an investment analyst? ›

Educational Qualifications

Many advanced analyst positions and investment management positions require a master's degree. Relevant graduate degrees include an MBA with a quantitative focus or a master's degree in finance.

What skills do I need for impact investing? ›

1 Financial analysis and management

Social finance and impact investing professionals need to have a solid grasp of financial analysis and management, such as accounting, budgeting, valuation, risk assessment, and portfolio management.

What are the biggest challenges in impact investing? ›

One of the key risks is that impact investments may not generate the intended social or environmental impact. Another risk is that financial returns may be lower than anticipated. There are a number of different types of impact investments.

What makes a good impact investor? ›

Investors with credible impact investing practices use shared industry terms, conventions, and indicators for describing their impact strategies, goals, and performance.

What is impact investment for dummies? ›

Impact investing firms support causes like renewable energy, healthcare, education, and economic development. The companies and projects these funds invest in are creating innovative solutions to issues like poverty, lack of access to resources, inequality, and environmental degradation.

What is it like to work in impact investing? ›

Working in impact investing can be both rewarding and challenging, offering professionals the opportunity to combine financial expertise with a passion for social and environmental impact.

How do impact investors make money? ›

Impact-focused investments are investments made with the intention to generate positive, measurable social and environmental impact alongside a financial return. By generating profits from an innovative business model, a company can pay financial returns to investors alongside doing something good for the world.

What is impact investing summary? ›

Impact investors are motived by a desire to advance social or environmental goals and an intuition that pursuing two goals at once - investment returns and social or environmental returns - is more effective than keeping them separate.

How much can you make in impact investing? ›

Impact Investing Salary in California
Annual SalaryHourly Wage
Top Earners$138,560$67
75th Percentile$90,089$43
Average$71,249$34
25th Percentile$39,169$19

What is the difference between ESG and impact investing? ›

Impact investing is more focused and deliberate in seeking investments with a specific social or environmental outcome. In contrast, ESG investing considers a company's ESG factors and traditional financial metrics. This is one of the main differences between ESG and Impact investing.

Does impact investing pay well? ›

As of Apr 9, 2024, the average annual pay for the Impact Investing jobs category in New York is $75,894 a year. Just in case you need a simple salary calculator, that works out to be approximately $36.49 an hour. This is the equivalent of $1,459/week or $6,324/month.

How do I start an ESG career? ›

The field requires a combination of education, technical skills, knowledge of ESG principles, professional certifications, relevant experience, and strong communication and problem-solving skills. With the proper preparation, you can increase your chances of landing an ESG job or advancing your ESG career.

How much does an impact investor make? ›

Impact Investing Salary in California
Annual SalaryWeekly Pay
Top Earners$138,560$2,664
75th Percentile$90,089$1,732
Average$71,249$1,370
25th Percentile$39,169$753

Do you need CFA for investment analyst? ›

Many hiring managers for financial analyst jobs list the CFA charter as a desired qualification.

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