The co-founder and CEO of APPA Real Estate, Aaron Marzwell, is a distinguished real estate developer in Los Angeles, California, who focuses on providing housing at affordable rates. Aaron Marzwell is also well-versed in various real estate fields, including workforce housing and impact investment.
Impact investing combines the traditional concept of investing with the principles of philanthropy, resulting in a sustainable and profitable investment portfolio that contributes to social and environmental benefits. Impact investment draws on a synergistic effect. Compared to either of the integral parts, impact investing boasts unmatched prospects. The sum of the impact of the integral parts does not fully equate to the synergistic effect of impact investing.
The federal government and other entities endeavor to drive positive impact through pension funds and other strategies. Philanthropic contributions from private entities amass $390 billion, according to Rockpa.org. However, the US capital market encompasses over $60 trillion.
This unpredictable size of the capital market compared to philanthropic donations from entities shows how constrained philanthropy is as an endeavor to drive change. Rather than merely donating to charitable endeavors, entities can push the envelope further by creating impact investing pipelines, which are investment assets that drive positive social and environmental impacts. Assuming one percent of the US capital market is devoted to impact investing, this translates into over $600 billion worth of assets actively committed to driving change, which is significantly higher than philanthropic input.
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