The Global Impact Investing Network’s (GIIN) State of the Market 2025 Report has revealed Oceania’s allocations dropped from US$3,251.5 million in 2019 to US$793.3 million projected for 2025.
In just the past year alone, investments fell 15 per cent, from US$1,815.2 million to US$1,549.1 million.
Meanwhile, over the six-year period, the dollar amount invested in Northern America increased by a compound annual growth rate (CAGR) of 34 per cent, while investments in western, northern and southern Europe increased by a CAGR of 38 per cent.
“The high rates of investment in northern America and western Europe were consistent with investors preferring to keep their dollars at home,” the report said.
The Global Impact Investing Network said investor behaviour is changing.
“The percentage of investors targeting market-rate returns has increased over the past six years. Most impact capital remains concentrated in high-income countries, particularly in northern America and Europe, despite the growing opportunities in emerging markets,” the report said.
More than 400 organisations responded to the GIIN’s 2025 Impact Investor Survey, with only 2 per cent allocating more than 75 per cent of their impact AUM to the Oceania region.
The results revealed impact investors invested US$49.8 billion in 2024 and expect to invest US$58.6 billion in 2025. Most investors reported raising capital from family offices, high-net-worth individuals and foundations, however the majority of dollars raised came from pension and retirement funds.
Eighty-five per cent of the sample were headquartered in high-income countries, with 87 per cent of the total group having made at least one impact investment since inception, the majority being investment managers, followed by foundations and family offices.
The US had the highest percentage of investors from any one country, with only 3 per cent in Oceania. Participants noted macroeconomic challenges, including inflation, interest rates, general economic downturns and climate change as having the greatest effect on their investments.
GIIN’s co-founder and CEO, Amit Bouri, said despite seismic shifts in the global economy, the impact investing market continues to grow.
“Impact AUM increased at a compound annual growth rate of 21 per cent over the past six years – a signal of enduring confidence in our market,” Bouri said in the report.
“Investors are increasingly allocating capital with the intention to generate measurable social and environmental benefits – delivering real-world outcomes and compelling financial returns, often outperforming traditional assets.”
Eighty-two per cent of investors allocated impact AUM dollars to investees and investments targeting low-income individuals.
Bouri said investors appear to be targeting sectors where capital is most needed, including financial services, healthcare, housing and clean energy.
“These investments generate meaningful outcomes, especially for people with lower incomes and limited access to essential services,” he said.
Nearly three quarters of surveyed impact investors focused on private markets, while just 6 per cent focused on public markets. Investors relied overwhelmingly on private market instruments to make their investments. Seventy-four per cent of investors made at least one allocation through private equity, followed by private debt and private real assets.
Private equity only made up 41 per cent of sample impact AUM, compared to 21 per cent invested using private debt and 14 per cent using private real assets. Public equity was the most used public market instrument, with 16 per cent of investors making at least one allocation through it.
“Over two-thirds of investors targeted growth-stage companies (67 per cent), these companies received only 25 per cent of impact AUM invested,” the report said.
“Though only 35 per cent of investors reported investing anything in mature private companies, these investments received 28 per cent of impact AUM reported. In other words, those who invested in mature private companies had larger average ticket sizes.”
For organisations not yet making impact investments, many cited lack of resources, lack of client demand and lack of shareholder demand as barriers to starting.
“When considering an impact investment, 58 per cent of impact investors ranked potential financial performance above potential impact performance on their list of priorities,” the report noted.
Forty-three per cent of organisations ranked mission-alignment as their top priority ahead of potential financial or impact performance when considering a new impact investment.
GIIN said a majority of impact investors expect to increase or maintain their allocations across all major impact categories and geographies in the future – a sign that even as global markets waver, impact investors will remain firm.
“Macroeconomic concerns were identified as the top challenge for investors over the past year. Moreover, investors reported that increased client demand has emerged as a growing challenge in the last three years, indicating mounting pressure on the impact investing market,” the report said.
“The volume of capital required to address global challenges at scale remains insufficient, and impact investors are encouraged to explore opportunities in low- and middle-income countries, alongside innovative financial models and technologies that serve people and the planet.”
Regions such as South America, south-eastern Asia and sub-Saharan Africa, including several emerging economies, are expecting the highest increases in allocations. Key sectors anticipating the highest increases are energy, agriculture and healthcare.
“Over the next five years, over half of investors plan to ramp up their investments in the energy sector. Investors also reported planning to increase their investments in agriculture and forestry, healthcare and water, sanitation and hygiene,” the report stated.
Seventy-nine per cent of impact investors are seeking risk-adjusted, market-rate returns, according to GIIN.
“Across all asset classes, impact investments are held to higher target returns than traditional investments,” the report said.
The organisation believes impact investors need to be forthright with their stakeholders about their goals, their successes and their shortcomings.
“Such transparency aligns with established impact management practices, as reflected in the Impact Principles, and is essential for growing the industry and its credibility.”
GIIN said pullbacks in official development assistance and humanitarian aid have left major funding gaps.
“While impact investing is not structured to replace this funding, in some instances, significant market gaps may offer opportunities for impact investors who are willing to engage with them.”
“Impact investors have a generational opportunity to make a difference,” the report said.
