Before a rapt gathering of investors, Bill McGlashan was holding forth on his favorite subject: “impact investing,” which aims to generate lofty social, as well as financial, returns.

A senior executive of private-equity giant TPG, McGlashan headed up its fast-growing business of investing for “social good.” His Rise Fund boasted A-list backers. Musician Bono and eBay billionaire Jeff Skoll co-founded it. Former Education Secretary Arne Duncan and former Yale President Richard Levin signed on as senior advisers.

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“I don’t see why reputational damage to one of its principals should affect the industry as a whole,” said Paul Brest, a former dean of Stanford Law School who teaches courses on impact investing.