More and more family offices are pivoting their investment strategies towards purpose-led efforts, with impact investing often at the top of this agenda.
But what are the dos and don’t when it comes to impact investing? What are the questions family offices need to ask themselves about the investment strategy? A new guide should help to answer these questions and more.
Entitled: Impact Investing for Family Offices and written by the professional services group PwC, the guide sets out to answer questions family office clients of the group ask most frequently when it comes to impact investing.
The guide starts from the premise of the need for family offices to pivot their investment focus more towards impact investing. As Peter Englisch, global family business leader for PwC, says: “Today we create value through the purpose and impacts that give companies a licence to operate. That’s why every company today needs to have a clearly defined purpose beyond making money – and why we’re seeing more and more clients undertake purpose-led transformation.”
But, with so many different purpose-led investment and giving strategies around these days, inevitably the question arises: “What is the difference between impact investing, ESG investing, SDG-aligned investing, venture philanthropy, and social entrepreneurship?” The guide attempts to distinguish between all these strategies.
The guide also ask questions about where should family offices seek advice on impact investing, how can the strategy fit into their existing portfolio, and how to construct an impact-led portfolio.
Also looked at is how to measure and monitor the impact of these investments, and to ensure the family’s interests align with the investments made.