Developing an Innovative and Generalizable Model for Impact Investing Fund: Insights from the Iranian Context

Articles in Press

Document Type : Research Paper

Authors

1 Department of Islamic Capital Market, Iranian Association of Islamic Finance, Tehran, Iran.

2 Department of Finance, Islamic Studies and Management Faculty, Imam Sadiq University, Tehran, Iran.

10.22059/ier.2025.388264.1008159

Abstract

This paper presents an innovative and generalizable model for an impact investment fund in the education sector, initially applied in the Iranian context. The model is designed to simultaneously generate financial returns and improve individuals’ knowledge and skills. In Iran, limited private-sector involvement and the heavy financial burden on the government have constrained access to quality education. To address these challenges, the proposed model introduces a sustainable investment framework that integrates revenue-sharing mechanisms with impact investing principles, thereby aligning educational development with financial incentives. This approach aims to encourage the active participation of institutional investors and educational institutions. The model was developed and refined through expert judgment involving professionals from Iran’s capital market and education sectors. Based on their input, a structured questionnaire was designed to reassess the model, and its validity was confirmed using content validity analysis. Quantitative data were analyzed using one-sample t-tests in IBM SPSS Statistics. The findings highlight three critical success factors: conducting effective culturalization campaigns, engaging pioneering educational institutions, and securing foundational support from institutional investors. By promoting private-sector participation in education financing, the model not only enhances learning outcomes across society but also offers a viable and socially responsible financial product for investors. Unlike previous financial instruments, this model uniquely integrates education and investment within a unified business structure. Although initially proposed within Iran’s education sector, the framework is adaptable to other sectors—such as tourism—and geographies, offering significant potential for broader international application.

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Iranian Economic Review

Articles in Press, Accepted Manuscript
Available Online from 17 November 2025

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