Rochus Mommartz, CEO at responsAbility, joined a recent ION Influencers Fireside Chat, focusing on the optimal impact investment strategy: manager-led versus portfolio building. Rochus Mommartz shared insights from his extensive experience in impact investments, particularly in emerging markets.

Background of Rochus Mommartz and responsAbility Investments AG

• Rochus Mommartz: CEO of responsAbility Investments AG, a Swiss-based impact asset manager.
• responsAbility Investments AG: Founded in 2003, specializing in financing and investing in emerging markets with a focus on climate finance, sustainable food investments, and financial inclusion.

Defining Impact Investment

• Impact Investment: Aimed at real-world change, focusing on intentional investments designed with a clear impact narrative.
• Emerging Markets: Countries with significant needs in areas like education, healthcare, sustainable food, and financial services.

Manager-Led vs. Portfolio Building Strategies

• Manager-Led Strategy: Involves selecting specific managers for private equity investments, suitable for institutional investors with the infrastructure to evaluate long-term partnerships.
• Portfolio Building Strategy: Offers diversified investment opportunities across various funds, ideal for mid-sized institutional investors seeking broad exposure and risk mitigation.

Job Creation and Impact

• Job Creation: A fundamental aspect of impact investments, particularly in emerging markets, focusing on creating quality jobs.
• Sector-Specific Impact: Different sectors contribute uniquely to impact, such as climate-related investments and sustainable food.

Blended Finance: Combining Public and Private Capital

• Blended Finance: Integrates public and private capital to leverage resources and achieve larger-scale impact.
• Public Sector Collaboration: ResponsAbility’s partnerships with governments, including the Swiss Government, to manage portfolios and create investment opportunities.

Regional Focus and Future Outlook

• Regional Focus: Current emphasis on Southeast Asia, including countries like India, Indonesia, Cambodia, and Vietnam, due to their dynamic growth and opportunities.
• Future Outlook: Optimism for private equity investments and the need for specialized impact funds with deep local expertise.

Conclusion

Rochus Mommartz highlighted the importance of creating opportunities for people in emerging markets, the benefits of blended finance, and the promising future of impact investments. The discussion provided valuable insights into the strategies and considerations for achieving optimal impact in investment portfolios.

Key timestamps:

00:07 Introduction
02:26 Defining Impact Investment
04:38 Emerging Markets Explained
07:49 Manager-Led vs. Portfolio Building Strategies
12:26 Impact vs. Non-Impact Private Equity
18:10 The Role of Public and Private Capital
21:10 Challenges in Public-Private Collaboration
23:12 Collaboration with the Swiss Government
25:59 Investment Trends in Private Equity and Credit
27:09 Regional Investment Opportunities in Asia
28:42 Navigating Uncertainties in Emerging Markets