“Impact investing is no longer emergent, but a maturing industry distinguished by rising institutional participation,” according to a report (Report) jointly prepared by the Institutional Limited Partners Association; Tideline, which provides impact investing advisory and implementation services; and private markets adviser Campbell Lutyens. However, the impact investment market may not yet be ready to absorb institutional-scale capital. The Report sets out a framework of “core market-level conditions needed to support investors in channeling capital at scale and with impact integrity.” It also evaluates the extent to which the impact investing market presently meets those conditions. The Report identifies three factors that influence institutional investors’ ability to engage in impact investing, including market conditions, firms’ internal orientation toward impact investing and the external operating environment. This article summarizes the key takeaways from the Report. See our two-part series “Opportunities and Challenges in ESG and Impact Investing for Alternative Asset Managers and Investors”: Part One (Aug. 24, 2023); and Part Two (Sep. 7, 2023).