How do Family Offices make Initial Step towards Impact Investing?
I have the pleasure to work with? family offices and their principals for over a decade in Switzerland and globally. I ?have been witness to the glacier pivot towards sustainable investment in this sector which is fortunately picking up pace.? Perhaps due to the blatant climate warming extremities or due to widening inequalities in the economies, Family Offices are delving more in responsible, sustainable ?and impact investing.?
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How do they start their journey??
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There are various models which are materializing and they fall into three categories:
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1.????? Principal decides to convert the whole portfolio to ESG compliancy
2.????? Next Gen convinces the Principal to invest in impact investing
3.????? Next Gen receives a portion of the wealth to invest in impact investing
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Whichever model you fall under, there is a process of seeking and questioning where the family wishes to leave their legacy? What is the purpose of the family wealth??
Generally, Family offices feel more comfortable to invest in club deals. Even more so when it comes to impact investing which may be a new topic for them.? Particularly,? if they do not have ample resource and large team to do a proper due diligence on each opportunity.
?Several organizations have mushroomed recently ?to accommodate this need of gathering family offices together ?to learn from each others’ investment thesis, gain exposure to opportunities which have been vetted, and increase their confidence in mobilizing capital towards impact investing.
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?Gratitude Railroad – was established by a YPO peer, Eric Jacobsen based in the USA. They convene and educate through network events, virtual learnings with value aligned investors, UHWNF, foundations and advisors. They all contribute their expertise and resources towards collective knowledge on ecosystem building and eventually investment opportunities.
?The Impact Office – established by my friend Risto V?yrynen based in Geneva, originally hailing ?from Finland, is a 4th generation member of a family business. He gathers Single Family Offices ?under his wing and coordinates workshops and gatherings in Geneva, London and also? in The Impact House ?in Slush (the tech conference in Helsinki) to help these families move beyond talk, find their own purpose and take action.
?Knowledge Impact Network – established by my dear YPO friend, Alain Chetrit whom has also identified this void in the Family Office space and started impact circles within KIN. Impact circles provide the answer to these families which are looking to define their own purpose. Impact circles are ‘forums with a cause’ and connect the families with experts from KIN providing expert valuable coaching and knowledge which they can propel the project forward.
?TONIIC – is ?a platform of a global community of asset owners seeking deeper positive net impact across their portfolio. They hold virtual meetings and present opportunities explaining why some of the members invested.?? TONIIC also has an educational component alongside the investment aspect of the group.
?SMILE – more recently I have come across SMILE which was established by Francois Botha providing comprehensive solutions to Family Offices. If you are thinking of establishing a family office, SMILE has the research and advice, service providers, to reach benchmark efficiencies. They also have an impact review which includes the latest trends in impact investing.
Lastly, at Verbier Summit two weeks ago, we all agreed the great bottlenecks for family offices to pivot toward sustainable investing are actually the bankers themselves by offering greenwashed products. Therefore, choosing an advisor such as Dune Thorne , executive team member of Brown Advisory , whom is investing her own family's wealth in a sustainable thesis would be a smart step.
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So if you are part of a family office, the principal, the next generation, do not wait to educate yourself about responsible investing. Manage your wealth in extension of your values. Join one of these communities today.
#impactinvesting #familyoffices Alain Chetrit Risto V?yrynen Eric Jacobsen Francois Botha
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Impact Investor | Board Member | Gender Equality Advocate
7 个月Thank you for sharing Naava Mashiah. It's a positive trend that we are also starting to see here in Asia.
Innovation, Sustainability and Climate Education/Action - Open to Work in Switzerland
7 个月Dr. Andreas Renner David Diallo
Naava Mashiah, Thank you for acknowledging Knowledge Impact Network among your accomplished friends. Our belief centers on the importance of Family Office leaders championing causes and involving multi-generational family members. We strive to advance forums that positively influence our lives and convene small groups to collaborate on solutions aligned with the SDGs. Your recognition sheds light on our efforts, and we appreciate it.