Impact investing: 3 things our private equity firm in Dallas, TX needs you to know
As its name implies, impact investing is when investors use their funds to support companies focused on creating a positive impact on the world — rather than just padding their bottom line.
However, it’s also a relatively new practice, so investors like you may still be unsure about its long-term feasibility and results.
To help provide some insight into the matter, we’ve created this guide for you. Here’s what you need to know about impact investing — straight from the experts at our private equity firm in Dallas, TX.
1. What is the goal of impact investing?
Impact investing has two main goals:
- To generate positive financial returns
- To generate positive impact in society and the environment
You’ll often see funds from impact investing go to companies in industries like renewable energy, environmental conservation, healthcare, and education. Why? By supporting companies that are already making a positive change, you can reasonably expect them to continue making a greater impact with even more funds.
2. Do impact investments do well financially?
There used to be a long-standing belief that if you wanted to invest for impact, you would have to accept lower market returns to do so. But times are changing, and more impact investors are seeing that that’s not the case anymore.
Of course, some purposely aim for lower returns on investment while others aim for above-average ones.
However, the vast majority of investors are finding that impact investments are performing better than they expect — both in terms of their overall impact and their financial returns.
3. How does gTC Group find good investment opportunities?
Here at gTC, we follow a list of criteria that has been useful in identifying attractive opportunities for our clients. Some of them include:
- Operating history of at least 5 years with recurring revenue and stable customer base
- EBITDA of at least $3 million
- Positive cash flow
- Alignment with gTC values of delivering an impact to communities
We also look for companies with a strong leadership team, values, and corporate governance as well as service offerings that show that they’re able to bring in consistent revenue over time.
Our clients trust us because we have in-depth knowledge about the industries we invest in, in addition to the breadth of investing knowledge that’s crucial for our clients’ success. By honing in on healthcare companies harnessing technology to give themselves a better edge, we’re able to pass on these opportunities onto our clients as well.
Get in touch with gTC Group today
When you’re looking for a private equity firm in Dallas, TX that focuses on impact investing, turn to the team at gTC Group. We’re here to help you identify investment opportunities with attractive returns and a positive impact on the world.
To help our investors with the latter, we’re developing the Center for Impact Indices to show that “investments for good” are profitable ventures too. Not only will you be able to find potential investment opportunities in a wide variety of industries, you’ll be able to measure the impact of their non-financial practices (including sustainability, social good, and governance) as well.
Contact us using the form on our website to learn more about our services and our mission. You can also email info@gTC.Group or call (214) 310-1094 for any questions or concerns you may have.