Investable

Adjective describing an asset, project, or opportunity that is suitable for investment. An investable entity is typically characterized by its potential for generating returns, stability, and alignment with an investor's criteria or strategy. The term is often used in financial markets to identify opportunities that meet specific risk, return, and liquidity requirements.

Investable meaning with examples

• The investment firm regularly assesses the market to identify investable opportunities, particularly in emerging technologies. Their strategy involves rigorous analysis to ensure that every potential asset not only aligns with their portfolio goals but also exhibits strong growth potential over the long term, making them appealing to their clients seeking to diversify their investments.
• When evaluating whether a startup is investable, venture capitalists look for factors such as market demand, the experience of the founding team, and a sustainable business model. A startup that meets these criteria is more likely to attract funding and successfully navigate the challenges of scaling, thus offering a solid return on investment for investors.
• Real estate professionals often highlight the importance of location when determining whether a property is investable. Properties in high-demand areas or those poised for development can offer significant profit margins. Investors are therefore encouraged to conduct thorough market research to identify properties with strong appreciation potential before making investment decisions.
• Sustainable investing has gained momentum, leading investors to seek out companies that are considered investable due to their commitment to environmental, social, and governance (ESG) criteria. By focusing on sustainable businesses, investors not only aim for financial returns but also contribute to positive societal impacts, fulfilling both fiscal and ethical investment objectives.