Alternative investments with an SRI bent are gaining traction with investors, according to a new study by US SIF Foundation.
In 2010, $80.9 billion was invested in 375 alternative investment funds, a nearly 16% jump in dollar amount from $69.8 billion in 346 funds the year before, according to a study, Sustainability Trends in Alternative Investments in the United States.
The study was conducted for US SIF Foundation by the Center for Social Philanthropy at the Tellus Institute. The former is affiliated with US SIF - The Forum for Sustainable and Responsible Investment.
The alternative investments featured in the report include private equity and venture capital funds, property investment funds and hedge funds.
Environmental criteria were the primary consideration among those alternative vehicles, with $68.9 billion in total investments going toward environmental themes. Social criteria were second with $48.8 billion, and governance was third at $37.5 billon. There was overlap between the criteria.
"We see interest in green building, climate change issues, clean technology, renewable energy and energy efficiency," says Meg Voorhes, US SIF deputy director and research director. "These managers look to produce market rates of return for their clients while helping to foster businesses, generate jobs and introduce products that will yield social and environmental benefits."
Lisa Woll, US SIF CEO, adds, "Alternative investments in sustainable and responsible investing are attracting a wide range of investors (including) high-net-worth families and individual angel investors; mission driven institutional investors such as philanthropic foundations, hospitals and faith based institutions; and some of the largest and most prominent pension funds and private equity firms.
Private equity and venture capital funds led the field of sustainable alternative investment vehicles with 233 funds. At the same time, property and real estate investment funds had the most assets invested with $44.3 billion.
The lead sponsor of the report is Azimuth, as well as Arborview Capital, DBL Investors, Ecotrust Forest Management, Lyme Timber, Mission Markets, SJF Venture, TerraVerde Capital Management, Trillium Asset Management and Working Lands Investment Partners.