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

How to Become an Impact Investing Analyst (1) Business

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Finance – B.S.

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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: 62%of graduates finish similar programs within 24 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:

  • Management
  • Accounting
  • Finance
  • Spreadsheets
  • Financial Analysis
  • Problem Solving

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.

How to Become an Impact Investing Analyst (2) Business

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Accounting – B.S. Business Administration

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

Have a knack for numbers or fine-tuning finances?

  • Time: 62%of graduates finish within 24 months
  • Tuition:$3,755 per 6-month term
  • Courses: 41 courses in this program

Skills for your résumé you will learn in this program include:

  • Accounting
  • Finance
  • Financial Statements
  • Communication
  • Detail Oriented
  • Research

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

How to Become an Impact Investing Analyst (3) Business

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Accounting – M.S.

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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: 62%of grads finish within 19 months.
  • Tuition:$4,755 per 6-month term.
  • Courses: 10 total courses in this program

Skills for your résumé that this program will prepare you for:

  • Accounting
  • Auditing
  • Tax Planning
  • Financial Management
  • Online Communication
  • Research

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

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 to Become an Impact Investing Analyst? ›

Interpreting and analysing social and environmental data and information on companies and sectors. Making recommendations on investments with a social and environmental impact. Communicating information and reports to investors on the performance of social and environmental impact investments.

What does an impact investing analyst do? ›

Interpreting and analysing social and environmental data and information on companies and sectors. Making recommendations on investments with a social and environmental impact. Communicating information and reports to investors on the performance of social and environmental impact investments.

How to start a career in investment analyst? ›

How to become an investment analyst
  1. Earn a bachelor's degree. The first step you can take to become an investment analyst is to earn a bachelor's degree. ...
  2. Build professional experience. ...
  3. Pursue a master's degree. ...
  4. Get certified. ...
  5. Apply for jobs as an investment analyst.
Mar 15, 2024

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

How long does it take to become an investment analyst? ›

Investment Analyst Qualifications

A bachelor's degree in Finance, economics, accounting, or a related field. 1-3 years of experience working in the financial industry. Strong analytical and problem-solving skills. Excellent communication and presentation skills.

What skills do I need for impact investing? ›

Match your skills
  • Demonstrated excellence in quantitative and qualitative analysis.
  • Strong verbal and written communication skills.
  • Great interpersonal skills, ability to work effectively with team members and clients.
  • Relevant experience in investing, private equity, consulting, or financial services.

What are the cons of 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.

How hard is it to become an investment analyst? ›

Entry-level positions typically require a bachelor's degree. After several years of working and learning in a junior position, many analysts head back to school to complete a graduate degree in preparation for further advancement in the field.

What is the path to becoming an investment analyst? ›

How to become an investment banking analysts
  • Earn a relevant bachelor's degree. ...
  • Complete an internship in the finance sector. ...
  • Pursue industry certification. ...
  • Get investment analyst experience. ...
  • Gain professional registration and licensing. ...
  • Consider a master's degree.
Jun 30, 2023

Can you become an investment analyst without a degree? ›

Financial Analyst Degree and Educational Requirements. There is no specific degree required for a career as a financial analyst, but finding a job will probably be easier if you have a bachelor's degree, and most companies require it. Nearly all financial analysts start with an internship or entry-level position.

How to start a career in impact investing? ›

To become an impact investing analyst, you can follow these steps:
  1. Earn a bachelor's degree in finance, economics, or a related field. ...
  2. Get an internship in finance to gain relevant skills and learn about investing. ...
  3. Earn a master's degree in finance or an MBA. ...
  4. Apply for an entry-level job in finance.

What is the 70% rule investing? ›

Basically, the rule says real estate investors should pay no more than 70% of a property's after-repair value (ARV) minus the cost of the repairs necessary to renovate the home. The ARV of a property is the amount a home could sell for after flippers renovate it.

What is the 80% rule investing? ›

An example of the 80-20 rule is 80% of a company's revenues coming from 20% of its customers or 20% of a portfolio's most risky assets generating 80% of its returns.

Do investment analysts work from home? ›

Work from home financial analysts often measure key performance indicators, produce reports on request, ensure data integrity, and support regulatory compliance activities. This is a remote, home-based position, though some companies may occasionally ask you to visit the office to attend meetings or give reports.

Do investment analysts need CFA? ›

Financial analysts do not need the CFA credential to work in the field, but employers may prefer individuals with certification. Candidates with a relevant degree alone can qualify for entry-level positions.

How old are investment analysts? ›

If you have more than 2 – 3 years of full-time work experience after university, it will be very difficult to get in at the Analyst level (estimated age cut-off of 25, but it may be more like 27 – 28 depending on when you started the degree).

What is an example of impact investing? ›

Affordable Housing: Some impact investors put their money into development projects that increase the availability of affordable housing. These projects can have a significant social impact by providing stable housing for low-income families.

What are the main three features of impact investing? ›

Core Characteristics of Impact Investing
  • Intentionality. Impact investing is marked by an intentional desire to contribute to measurable social or environmental benefit. ...
  • Use Evidence and Impact Data in Investment Design. ...
  • Manage Impact Performance. ...
  • Contribute to the Growth of the Industry.

What are the three components of impact investing? ›

The main elements of impact investing include:
  • Intentionality. Impact investing is purpose-driven. ...
  • Measurable Impact. Impact investments have measurable, quantifiable and transparent outcomes. ...
  • Expected Returns. Like traditional investments, impact investments involve an assessment of risk and return.
Oct 25, 2023

What is impact investment for dummies? ›

Unlike traditional investing, where the goal is purely financial gain, impact investing seeks to make a difference. Impact investing firms support causes like renewable energy, healthcare, education, and economic development.

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