With the rise of impact investing, there has been an increasing number of opportunities for students and graduates to gain experience in this field through impact investing internships. Impact investing aims to generate positive social and environmental impact alongside financial returns, appealing to a new generation wanting careers with purpose. Internships provide the perfect way to get first-hand experience in impact investing across different funds, firms and organizations. This article will explore the landscape of impact investing internships, key skills developed, top employers, and tips to stand out in the application process.
Learn the Fundamentals of Impact Investing
An impact investing internship will allow you to learn the fundamentals of this rapidly growing field. You will gain exposure to how funds conduct rigorous due diligence to select investments that balance financial returns with positive impact. By reviewing prospective deals and portfolio companies, you will understand how impact is measured and managed alongside financial performance. You may also learn how fund managers raise capital, promote their impact strategies to investors, and report on impact metrics. Furthermore, you will discover innovative business models and financing structures targeted at solving social or environmental problems.
Gain Broad Exposure through Rotational Programs
Some impact investing firms and funds offer rotational internship programs that allow you to experience different parts of the organization. For example, you may spend time working with the investment team while also rotating through the impact and investor relations functions. This provides a comprehensive overview of the entire impact investing process while allowing you to explore your interests. A rotational experience is ideal for those new to the field looking to discover which area excites them the most before applying for full-time roles.
Apply Your Skills and Passion for Impact
Impact investing internships enable you to apply your skills and passion for driving change. For example, if you are interested in healthcare, you may evaluate companies delivering affordable services to underserved communities. Or if you care about financial inclusion, you could assess microfinance institutions expanding access to credit. Such experiences are highly rewarding, allowing you to witness firsthand how investments can be transformative.
Build Technical Skills such as Financial Modeling
Depending on your role, impact investing internships can help you buildexcelled technical skills. Investment roles will enable you to develop financial modeling expertise as you project future cash flows and value potential deals. You may also strengthenresearch skills as you assess market landscapes and get exposure to due diligence. Furthermore, you can hone yourimpact assessment abilitiesthrough developing impact frameworks and metrics to track performance.
Expand Your Professional Network
Impact investing internships enable valuable networking with experienced professionals across different functions. You will interact closely with your team and managers, who can become mentors and advocates. It is also common for interns to meet Limited Partners and portfolio companies, building connections with various stakeholders. Such networking can be invaluable for career progression.
In summary, impact investing internships provide unparalleled opportunities to gain hands-on experience while contributing to a mission-driven field. You will develop financial and impact assessment expertise, discover potential career paths, and expand your professional relationships. This sets you up for future impact investing roles or other purpose-driven work.