Dual-Purpose Fund

A Dual-Purpose Fund is an investment vehicle designed to achieve two main objectives: generating financial Returns and fulfilling a social or environmental mission. These funds often target sectors like renewable energy, affordable housing, or community development, aligning profit-making with positive societal impact.

For instance, a Dual-Purpose Fund might invest in a company that produces solar panels while also providing job training for underrepresented communities. Another example could be a fund that finances low-income housing projects while ensuring a reasonable return for investors.

Cases include:

• Impact Investing Funds: These funds focus on both financial return and measurable social impact, like a fund that supports small businesses in economically disadvantaged areas.
• Green Bonds: Issued to finance projects with environmental benefits, such as renewable energy installations, while offering investors fixed Returns.