WEFUSA FamilyOfficePrimer Report

Industry Agenda
From the Margins to

the Mainstream
Impact Investing:
Assessment of the Impact
A Primer for
Investment Family
Sector Offices
and
Opportunities to Engage
Mainstream Investors
AAreport
reportby
bythe
theWorld
WorldEconomic
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Prepared in collaboration with Deloitte Touche Tohmatsu
December 2014
September 2013
Impact Investing: A Primer for Family Offices 1

© World Economic Forum
2014 - All rights reserved.
No part of this publication may be reproduced or transmitted in any form or by any means,
including photocopying and recording, or by any information storage and retrieval system.
The views expressed are those of certain participants in the discussion and do not necessarily
reflect the views of all participants or of the World Economic Forum.
REF131114
2 Impact Investing: A Primer for Family Offices

Contents Preface
3 Preface Impact investing has become a popular topic of discussion, not only with
the mainstream media but also with mainstream investors. Yet while impact
investing has entered the mainstream mindset, many investors with the
5 Introduction
enthusiasm and means to engage meaningfully in impact investing lack the
informational resources to do so. For most investors today, impact investing still
7 Impact Investing in needs to be translated from a compelling concept into a sound strategy. This
Theory and Practice situation is especially true for family offices.
7 Definitional Breadth and Family offices can and likely will play a unique and important role in bringing
Investment Opportunities scale to the impact investing sector in the coming years. The reasons for this,
9 Impact Investing further detailed in this publication, include their desire to align family values with
within the Context Michael Drexler investment decisions, the autonomy with which they can make decisions on the
of Sustainable and Senior Director deployment of capital and the overall volume of assets under management held
Responsible Investing Head of Investors by family offices.
Industries
World Economic Impact Investing – an investment approach intentionally seeking to create
10 Charting the Course for
Forum USA both financial returns and positive social impact that is actively measured –
Your Family Office into
has been lauded as an innovative investment strategy with the potential to
Impact Investing
reconcile key structural shortcomings in traditional financial markets. Moreover,
11 Step 1: Define Vision with exogenous trends such as population growth, rising inequality, climate
12 Step 2: Determine change and resource scarcity gradually affecting investment markets, impact
Engagement Strategy investing offers a progressive approach to mitigating risk. While impact investing
continues to gain momentum, the sector remains small in the context of global
15 Step 3: Develop
assets under management and faces systemic challenges, such as lack of
Investment Guidelines standardized metrics for social impact and the long investment horizons often
15 Step 4: Execute needed to prove the model.
Investment Strategy
19 Step 5: Evaluate Over the past few years, the World Economic Forum has conducted extensive
Portfolio and Adjust research on the opportunities and challenges of impact investing – first with
Investment Strategy an objective assessment of the sector as well as the challenges holding the
Abigail Noble
sector back,1 second through curating, synthesizing and disseminating the
Associate Director
best practices of impact investing practitioners,2 and third through offering
20 Conclusion: Unique Head of Impact
customizable roadmaps with which institutional and private investors can define
Positioning of Family Investing Initiatives
a competitive strategy for impact investing.3
Offices to Grow the World Economic
Impact Investing Sector Forum USA
One of the most important insights we have gleaned is that while investors chose
to enter the impact investing sector for a variety of reasons, successful impact
21 Appendices investors are clear upfront about their intended impact as well as the metrics
they will use to measure it. Moreover, as it is an investment strategy and not
21 Appendix A: Potential a rigidly defined asset class, impact investments vary widely not only in their
Approaches to impact profile, but also in how the opportunity is sourced, selected and managed
Structuring Impact for success. Investors’ motivations, operational contexts and goals for impact
Investing Strategy investing are also highly diverse – there is no model that fits every investor. As
23 Appendix B: Resources such, there is no science to being an impact investor; it is more of an art. With this
to Engage in Impact in mind, the location for this report launch is apt – during Miami Art Basel (and
Investing at the World Economic Forum’s convening of next generation of wealth holders).
26 Appendix C: Examples of
Investment Opportunities The goal of this report is to help family offices ask the right questions as they
across Asset Classes contemplate their path into impact investing. It is important to recognize that
impact investing may not suit all investors. There will be family offices which
conclude impact investing is not appropriate at this stage for them.
27 Endnotes
While we are passionate about the potential of impact investing, we acknowledge
the best future for the sector is where each investor can make informed choices
29 Acknowledgements
about their own best interest. Each investor and investment institution needs to
evaluate if impact investing fits with its needs, interests and unique context.

It is with that in mind that we offer this report as a resource and tool that family
offices can use to begin the conversations internally, to craft and design their
own engagement strategy on impact investing with family members, advisers
and potential investees, as well as to ensure that not only is their wealth growing
in value, but also that their wealth can reflect their values.
We look forward to hearing about your interest in impact investing. Please share
your experiences and feedback with us at [email protected].

Introduction
Impact investing4 is an investing approach that intentionally seeks In light of the fact that some family offices are making impact
to create both financial return as well as positive social and/or investments, there are still many more on the sidelines. However,
environmental impacts that are actively measured. In the past many investors and thought leaders believe that family offices are
year, impact investing has received increased attention within well-positioned and necessary to influence the maturation and
mainstream audiences, including the G8 Social Impact Investing success of the impact investing sector for a number of reasons.
Taskforce, Pope Francis and the World Economic Forum.
First, family offices have greater discretion and independence in
Despite the “buzz” surrounding impact investing, with an estimated investment decisions compared to other asset owners that may
$50 billion of assets under management,5 the sector remains a be subject to policy regulation (e.g. pension funds, insurance
small proportion of the estimated $13.5 trillion of global funds companies) or that have mandated trusts which limit decision-
invested in sustainable and responsible strategies and an even making (e.g. large foundations). This means that family offices can
smaller percentage of tens of trillions in global assets under be flexible in their consideration of investments of varied sizes,
management.6 geographies and asset classes.
While impact investing is becoming a more frequent topic of Second, family offices are guided not only by financial
discussion among global leaders, asset owners and asset considerations, but also qualitative factors such as their standing
managers, few individuals or institutions have the expertise, tools in the community and inter-generational legacy. In many cases,
and understanding of how to put it into practice. this makes the discussion about investing for multiple bottom lines
easier to have with family offices than with other asset owners.
For a more in-depth discussion of the impact investing sector and
trends, download the World Economic Forum report: Third, family offices can play a role in ecosystem building by
From the Margins to the Mainstream – Assessment of the Impact sharing knowledge, serving as role models and even financing
Investment Sector and Opportunities to Engage Mainstream organizations dedicated to sector-building. Estimates show that
Investors.7 single and multi-family offices represent roughly $1.6 trillion in
assets under advisement in North America.10 In short, family offices
Family offices act as responsible stewards of the wealth of high- can play a catalytic role in the impact investing sector.
net-worth and ultra-high-net-worth individuals, their families and
their heirs. Yet after wealth is generated by one generation of a While impact investing may not suit all family offices, for those
family, an estimated 60% lose that wealth by the end of second that choose to become involved, there is a shortage of expertise,
generation, and a staggering 90% by the end of third.8 Many tools and frameworks to enable engagement. As a result,
multi-generational family offices are now exploring whether impact despite growing interest, many struggle with the initial steps of
investing is a way to unite families around values and positive engagement. One of the main goals of this primer is to help family
legacies, thereby more closely involving family members in offices interested in impact investing to begin to understand how
responsible long-term investing. they can put it into practice.11
Impact investing enables families to be explicit about their The main target audience for this report is single family offices. It
shared values and to reflect them in their investment and wealth offers useful frameworks and insights for multi-family offices, family
management decisions. In addition, an impact investing strategy businesses, family foundations and high-net-worth individuals as
aligned with family values can help to engage a younger generation well as policy-makers and advisers. The goal of this primer is to
in the leadership and management of a family office. help interested family offices ask the right questions and take the
first steps as they contemplate their path into impact investing.
According to a 2013 Financial Times survey, family offices that
are already active in impact investing cite intergenerational wealth Each family office’s motivations, operational contexts and goals
transfer, contribution to sustainable economy, contribution to for impact investing are unique – there is no standard course that
community, family values, risk management and succession fits every family. While this creates a daunting array of potential
planning as top motivations for engaging in impact investing. engagement opportunities, it also allows for a wide variety of
On average, family offices allocated 17% of their assets under opportunities to engage in impact investing. Thus, rather than
management to impact investments with a broad spectrum of prescribing a single approach, the primer offers high-level
exposure from 1% to 100% for some single family offices in the frameworks and disseminates insights that are the result of
US, UK and Switzerland.9 extensive conversations with family offices, family businesses,
family foundations and advisers.

Spotlight: Statistics and trends that may affect family offices’ entry into impact investing
Several demographic, business and socio-environmental trends will affect impact investing over the coming decades:
Rising wealth and increased demand from Millennials

• Increased wealth: Over the past 30 years, the wealth within the Forbes top 400 has increased from $125 billion $2.29 trillion
today.12 The number of high-net-worth and ultra-high-net-worth individuals has grown; between 2008 and mid-2014 there
was a 54% rise in the number of millionaires and more than double increase in the number of billionaires.13
• Among the ultra-high-net-worth individuals, a growing percentage are self-made billionaires: The composition among the
ultra-high-net-worth individuals has shifted from predominantly inherited wealth to self-made billionaires.14 Of the 29 people
listed on the Forbes under-40 billionaires list (which represent roughly $119 billion in net wealth), 13 people (slightly less than
half) are self-made billionaires.15
• Wealth transfer from baby boomers to Millennials: Over the next four decades, it is projected that the Millennial generation will
inherit an estimated $41 trillion from the baby boomer generation.16
hen wealth is inherited, the inheritee switches advisers: It is estimated that 98% of the time when the next generation
•W
inherits wealth, he or she switches advisers.17
ounger wealth holders are more socially and environmentally conscious: According to the 2014 Deloitte Millennial survey,
•Y
nearly 30% of Millennials believe the number one priority of business should be to improve society. They believe business can
do more to address society’s challenges of resource scarcity (56%), climate change (55%) and income inequality (49%).18
Nearly 40% of GenX/Y millionaires give more than $30,000 annually to charity versus 6% of the baby boomers.19
Increasing demand from women

• Among the ultra-high-net-worth individuals, a growing percentage are women: Women control almost half of all US estates
valued at more than $5 million.20 Of the $41 trillion in intergenerational wealth transfer over the next four decades, women will
inherit 70%.21 And, 45% of American millionaires are women and by 2030 roughly two-thirds of private wealth in the US will
be held by women.22
• Attitude towards investing among women: Roughly half of affluent women are interested in environmental or socially
responsible investments (compared to one-third of men).23 Social, political or environmental impacts in evaluating investments
were considered “somewhat” or “extremely” important by 65% of women, but only 42% of men.24
• Women making more investment decisions: 75% of female wealth creators say they are the primary decision-makers.25
• Attitude towards investing among female advisers: Female advisers report to be more interested than their male counterparts
in using sustainable investing funds by a margin of 59% to 34%.26
• When wealth is inherited, the inheritee switches advisers: When a spouse inherits wealth, 55% of the time he or she switches
advisers.27 Another study shows that 70% of women fire their financial adviser within one year of being widowed.28
The growth in impact investing opportunities

• Climate change makes environment a business imperative: UNESCO estimates that by 2030 the world will need 30% more
water, 40% more energy and 50% more food.29 The cost of climate change-related impacts on the environment, health and
food security could exceed $4 trillion by 2030. Climate change policy could contribute up to 10% to overall portfolio risk.30
• Rise of LOHAS consumers around the world represents growth sector for investment: Consumers want products reflecting
their values and positively influence society. The LOHAS (Lifestyles of Health and Sustainability) market, roughly $300 billion in
size, has grown over 10% annually since the early 2000s.31
overnment policies creating incentive and opportunities for impact investing: As governments design and implement
•G
policies and programmes to incentivize capital to flow into socially and environmentally impactful programmes, such as
wetlands mitigation credits, the set of opportunities to invest with impact and available instruments increase.32 Such projects
can be attractive to investors based on expectations of market-rate returns and low correlation with other investments.33

Impact Investing in
Theory and Practice
Definitional Breadth and Fixed income

Investment Opportunities
Bonds with maturities ranging from short term (less than
Impact investing strategies target financial returns, which can one year) to long term (five to more than 30 years) issued by
range from capital preservation to market-competitive, and focus governments, corporations or financial institutions that result in
on a spectrum of social and environmental outcomes depending capital flow to impact enterprises or projects that address social
on sector, theory of change, implementation strategy and targeted or environmental challenges.
beneficiaries.
These include traditional and untraditional bond structures. The
While private equity and debt investments provide a more direct International Finance Corporation (IFC)’s green bond, an example
connection between investor’s capital and impact creation, public of a traditional bond structure, is a $1 billion, three-year, AAA rated
equity and debt strategies can also help tackle global sustainability green bond with an interest rate set at three-year US treasury
challenges. In recent years, the investment opportunity set and rates. The IFC uses green bonds to finance projects that result in
number of intermediaries in impact investing have increased, reduced greenhouse gas emissions in developing countries.35 In
allowing for the creation of diversified impact portfolios with Michigan, the LIHTC (Long Term Housing Tax Credit) programme is
investments across asset classes that satisfy investors’ risk and an investment vehicle of $20 million annually intended to increase
return requirements, in addition to generating positive social and and preserve affordable rental housing. The programme permits
environmental impact. corporations, banking institutions and individual investors in
affordable rental housing to claim a credit annually against their tax
As with any investment approach, the success of impact investors liability for a period of 10 years.36
can vary depending on factors such as investing experience and
track record. Additionally, impact investors may face challenges In December 2013, Threadneedle Investments and Big Issue
due to real or perceived risks inherent to any innovative sector. Invest in the UK launched a £15 million social investment
partnership to create the first FCA-registered diversified social
As impact investing is an approach, it can be applied across bond fund in the UK market. The fund offers daily liquidity and
asset classes and risk-adjusted return targets in diverse and anticipates generating financial returns in line with UK corporate
numerable ways. Common impact themes for impact investments bonds. The investment policy of the fund is to maximize exposure
include: community development, small business finance, health to socially beneficial activities.37
and wellness, education, microfinance and financial inclusion,
sustainable consumer products and fair trade, natural resources Investment funds (private equity and venture capital)
and conservation, renewable energy and climate change, and
sustainable agriculture and development. Investments made into third-party managed funds that make debt
and equity investments into impact enterprises.
Below are examples of impact investments across asset classes
and impact themes: Private equity is the most common investment instrument used by
impact investment funds. There are over 300 impact investment
Cash/cash equivalents funds listed in ImpactBase, which presents offerings across
asset classes, sectors and geographies. For example, LeapFrog
Investments of cash assets (such as certificates of deposit, savings Investments makes equity investments into impact enterprises
accounts and money market accounts) into community banks and that provide financial services to low-income populations. It has
local financial institutions that make investments specifically into diverse investors, including large-scale institutional investors
organizations that are intentionally seeking social or environmental (e.g. TIAA-CREF), development financial institutions (e.g. IFC),
objectives. investment banks (e.g. JP Morgan) and philanthropic investment
firms (e.g. Omidyar Network).38
For example, Triodos Bank offers a range of liquid offerings to
individual, business and institutional customers and “only lends
to and invests in organizations that benefit people and the
environment”.34

Public equities for better employment opportunities, cohesion and empowerment
in an integrated urban community environment. With a clear
Investments made into impact enterprises that are publically understanding of the local cultural, economic, social and
traded. environmental requirements, Kora is now delivering sustainable
cities for more than 240,000 people while also earning attractive
Given the early stage of the sector, few publically listed returns for Vital’s investors.
organizations exist that intentionally seek and measure social
outcomes in addition to profits; however, notable exceptions do
Infrastructure
exist. London’s Social Stock Exchange lists 11 publically listed
companies that meet its criteria to be considered a “social impact
Investments into the facilities and structures required for the
business”.39 Although the number of publically listed impact
effective operation of an economy and society, usually involving
enterprises is currently quite small, investors will have greater ability
the provision of essential physical structures and services to
to find liquid trading opportunities of impact enterprises as retail
populations at the bottom of the economic pyramid.
demand increases.
For example, with financing from a group of investors and the
Real estate Kenyan government, the AfDB financed a €115 million investment
in wind power in Kenya’s Lake Turkana region. The project
Investments made into sustainably managed properties, or provides clean energy, reduces energy costs to consumers and
properties currently in development in regeneration areas or among connects landlocked regions to the rest of the country through
low-income populations, and in which social and environmental improved infrastructure.41 Impact investments in infrastructure
objectives are intentionally sought, such as smart growth, green appeal to institutional investors given the size and scale often
buildings, urban regeneration and affordable housing. associated with these transactions.
For example, Vital Capital Fund and its local partner Kora40 have
Other real assets
committed roughly $200 million to build over 40,000 affordable
houses in six provinces throughout Angola. The investment
Identifiable and tangible assets, whose value is derived from
in Kora seeks to not only provide affordable housing units for
physical properties, managed to produce long-term value to
the local population, but also to provide the full spectrum of
society and the environment, as assets are not depleted or
necessary elements for vibrant community life, such as clean
damaged, such as sustainable forestry and agriculture.
water, sanitation, power, education, social services, recreational
facilities, green space, health services and more. These combine

For example, Equilibrium Capital invests exclusively in real assets Impact Investing within the Context of
(e.g. croplands, sustainable forestry, agricultural and food waste). Sustainable and Responsible Investing
The firm applies a “sustainable alpha” strategy in which assets are
stewarded over the long term and considerations across the entire While the focus of this report is on impact investing, there are
ecosystem (e.g. community and environment) are included in the several related investment approaches within the “investing with
investment decision-making process.42 impact family” that may be of interest to family offices interested
in incorporating impact into their wealth preservation and wealth
Direct equity and debt/venture capital growth strategies, including sustainable investing and responsible
investing. This includes:
Financing a for-profit company that generates a social or • Exclusionary investment screens (both positive and negative)
environmental benefit (e.g. social venture capital, private equity
• Systematic and explicit integration of environmental, social and
and debt).
governance (ESG) factors into traditional financial analysis
Bridges Ventures is a private sector, mission-driven investment • Impact investing which intentionally seeks to create financial
company that specializes in funds that can deliver financial returns return as well as positive social and/or environment impact that is
and make a positive social or environmental impact. In late actively measured
2002, Bridges Ventures invested £125,000 of early-stage capital
in Simply Switch, an online and telephone-based provider of One way to relate these approaches to one another is to consider
comparative information for utility suppliers. Follow-on investments them progressively, incorporating sustainable and responsible
resulted in a total commitment of £345,000. Simply Switch was investing themes in a more active fashion. For example, the
sold to The Daily Mail and General Trust for £22 million in 2006, integration of ESG factors into investment decisions may implicitly
returning £7.5 million to Bridges Ventures and resulting in a reflect a screening for particularly desirable/undesirable industries
money multiplier of 22 times and an IRR of 165% to investors. or geographies. Similarly, impact investments may implicitly
By being the first provider to offer its service both online and over reflect ESG factors in addition to the fact that impact investments
the telephone, Simply Switch made it easier for those without intentionally target social or environmental outcomes. It should
resources to go online to save money on their bills. Additionally, it be noted that an investor can utilize any one of these approaches
created 80 new jobs in a Bridges Ventures target area and helped without explicitly engaging in the others. Figure 1 below provides a
raise £500,000 for charities.43 simplified visualization of how these approaches fit together.
Figure 1: Sustainable, responsible and impact investing

Remaining asset classes Figure 1: Sustainable & Responsible Investing Approaches
approaches
Commodities and hedge funds.

Exclusionary Screens
Commodities involve investments made into basic resources (Positive/Negative)
that are used in the production of other goods and services. ESG Integration
While opportunities may exist for trading of sustainably produced
commodities, it is unlikely to occur in the near future. Hedge
funds involve complex investment strategies of publically traded Increasing impact intent, measurement, and reporting Impact Investing
companies; given the limited number of public listings of impact
enterprises, there are limited opportunities for hedge funds in
impact investing.
Layed investment structures44
Innovative structures, often hybrid investment products that offer

tailored investment opportunities to investors with different risk, Interested investors should begin to engage in some capacity,
return and impact expectations. re-evaluate, assess different strategies and course-correct based
on experience and developments in the overall sphere of impact
For example, the California FreshWorks Fund is a public-private investing and in the investor’s unique circumstances. Responsible
partnership loan fund which finances grocery stores and fresh food and sustainable strategies can be used to increase overall portfolio
retailers in underserved communities in California. From the fund’s impact (see “Performing due diligence in an impact portfolio” on
$125 million loan pool, $100 million was raised from banks and page 17).
insurance companies and allocated to a senior debt tranche, while
$25 million was raised from a group of mission-driven investors All approaches within the sustainable, responsible and impact
and allocated to a subordinated debt tranche. Additionally, $7.5 investing universe have merit and can have a positive impact.
million in grants has funded a first-loss reserve. Senior lenders are Moreover, experience in any of these approaches may be an
secured by collateral of the underlying loans from the FreshWorks “on ramp” towards future additional engagement with other
Fund.45 approaches in sustainable, responsible and impact investing.

Charting the Course for
Your Family Office into
Impact Investing
Each family office begins from a unique starting point and has different goals. Accordingly, each family office’s path into impact investing
will differ. The following framework may be helpful for family offices interested in customizing their engagement with impact investing.
For some, following all five steps attentively can be a meaningful approach; for others these steps can serve as guideposts as they chart
their own course.
Reach Internal Alignment
Evaluate
Portfolio and
Execute Adjust Strategy
Strategy • Monitor financial
Develop • Source and impact
Investment investments results
Determine Guidelines • Perform due • Evaluate
Engagement • Review existing diligence outcomes and
Define Vision Strategy or develop new adjust your
investment investment
• Clarify • Evaluate fit
guidelines, strategy
motivation and within existing
context portfolio integrating
impact goals
• Define impact • Decide on
goals and impact portfolio Implement and Evaluate
evaluation construction
criteria approach
Deepen Knowledge, Update and Evolve Impact Investment Vision
Step 1: Define vision Step 4: Execute investment strategy

Define a clear vision for impact investing. The family must align on Execute the investment strategy. Deploy capital based upon the
its values, its desired future legacy and impact and financial goals investment guidelines and impact portfolio construction model.
for what it wants to achieve through the family office. Assessing the This section provides insights on different portfolio construction
internal context is important to understand the constraints as well models as well as investment sourcing, due diligence and
as opportunities for its impact investing strategy. monitoring.
Step 2: Determine engagement strategy Step 5: Evaluate portfolio and adjust strategy
Determine how to engage with impact investing. It is ambitious for Evaluate the portfolio on a regular basis and adjust strategy. While
a family office to begin by reallocating a significant portion of assets executing the investment strategy, family offices should review
to impact investing; a more gradual and iterative process is often periodically the successes and setbacks and refine the investment
preferred after examining internal capabilities, considering available guidelines accordingly. Clear and defined impact and portfolio
resources, knowledge and expertise. goals upfront will facilitate the evaluation process, whether it is
through third-party assessments or periodic internal review. Based
on the results of the evaluation, the family office can refine its
Step 3: Develop investment guidelines
investment strategy with updated impact and portfolio goals.
Develop investment guidelines. Formalized investment guidelines
allow the family office to align family members’ interests and
values and help to ensure a smooth execution of the strategy. If
an investment policy statement already exists, the family office can
update it with impact goals and evaluation criteria.

Guiding Principles
Some commonly cited guiding principles to consider when beginning on the impact investing journey:
No one-size-fits-all approach
To navigate the complexity of impact investing, investors should define an approach that suits their motivations and
unique context.
Avoid analysis paralysis
Philosophical debates about what counts as impact investment versus other types of responsible investment will likely
continue as the field matures. The key is to engage in some capacity at first and then course-correct and re-evaluate the
strategy over time.
Work with and around challenges
Recognize and acknowledge challenges, determine which ones are show-stoppers and which ones can be creatively
addressed. Making this determination will help investors remain action-oriented.
Willingness to shape the opportunity
Similar to other financial innovations, success in impact investing often requires that investors think multiple steps ahead
of the current landscape. Some investors choose to take an active role in developing the marketplace. If this is done well,
early investors will be well-positioned to benefit from future growth in impact investing activity.
Step 1: Define Vision • In what ways have philanthropic efforts been effective and
limited (e.g. scale, market orientation)? How can impact
As there is no one-size-fits-all approach, building out and investing be an opportunity to engage the next generation on
executing an impact investing strategy requires patience, discipline values?
and focus. To begin with, it is helpful for a family office to define a • What is your perspective on the role of philanthropy and
vision for impact investing which takes into consideration: investment? Would you prefer to maximize returns within
• The motivations for pursuing impact investing your investments than donate philanthropically to causes you
support, or prefer to find investments that blend financial returns
• The structure, size and internal context of the family offices
with impact?
• The goals and approaches which can align what is desired with
what is possible
Clarify context
These three components will help align the family office’s vision
and craft the approaches necessary to move forward with Each family office has a unique structure and contextual factors
engaging in impact investing. The clarifying questions below are influencing its appetite to engage in impact investing, including
designed to help facilitate this process; not all questions will be how many generations it spans, whether the patriarch of the
relevant for all family offices. family is alive or not, the size of its assets under management
(or advisement), the level of in-house expertise, its liquidity
requirements, its current asset allocation and its appetite for risk
Clarify motivation and/or innovative approaches.
• Do you need to grow your assets or just preserve your wealth?
Some families are clear on their shared values and desired future
What are your return and risk expectations for each asset class?
legacy; this is often reflected in past or current philanthropic
What is your current portfolio allocation framework?
commitments or it can relate to aspects of their family identity such
as their family business.46 In other cases, the family office may • How much discretionary capital do you have at your disposal?
benefit from engaging all of the decision-makers in a discussion on Where and across what entities is the capital held and who are
their values, interests and constraints. Having an internal champion the stakeholders for different pools of capital?
– often someone who has high levels of trust and influence across • How comfortable are you making long-term investments? What
family members – may be a strategic way to begin the discussion. are your capital needs on a short-term and long-term basis?
•W
hat societal issues are most important to your family? What • What is your capital market outlook in terms of investment risks
problems are you passionate about resolving? Are there impact and opportunities?
themes or geographic regions that align with your values or core
business? • Are there operational constraints driving minimum investment
size restrictions and the related economics of due diligence? Are
•W
hat are your future generation needs in terms of ensuring there solutions available to diminish such barriers?
capital preservation as well as the future world you want your
children to enjoy? What legacy do you want to leave to next • Does the family already devote resources to social causes?
generations? How are those managed? Do you currently allocate through
intermediaries/fund managers or a combination of fund
• What societal issues are you best positioned to address given managers and direct investments?
your time horizon, investable assets and expertise?

• Do you have the capacity to screen direct investments Reach alignment within the family
internally? What is your level of experience and stock of
intellectual capital in making impact investments? Do you have Complex family dynamics may prevent family offices from reaching
the required skills and knowledge to integrate impact strategies a consensus and mandate that would allow them to move
in your existing processes? forward. The following suggestions can be helpful in addressing
the issue:
• Are you willing to co-invest with other family offices on impact
investing deals? What will be the family members’ level of • Understand context: Given the financial goals and past
engagement in the investment process (e.g. how hands-on do performance of the portfolio, understand how impact investing
you expect to be with investment selection)? would fit into the current investment framework and portfolio
construction before presenting it to other stakeholders.
• Initiate conservatively: Start with investments which are less
Craft a vision risky, liquid and provide stable returns. Investments which
can be analysed with the same rigor of existing investments
Once the motivations for engaging with impact investing are and by existing staff or financial advisers may increase the
clarified and the internal context in which the family office is receptiveness among sceptics. These investments could include
operating is understood, the family office can craft its vision for community development bonds, microfinance and real assets.
how it wants to engage with impact investing. The vision is the
articulation for why the family office decided to and continues to • Learn by doing: Many family offices get stuck trying to agree
have an intentional strategy of engagement in impact investing. on a specific percentage for a target allocation to impact
Identifying outcomes and specific targets early on will help investments. Instead, begin the discussion by presenting
evaluate performance in later stages. decision-makers with concrete deals and small pilot
investments. This approach is more likely to gradually gain
• How can impact investing fit with the family office’s current and support.
long-term financial goals and shared values?
• Collaborate: Join a peer group and /or make friends with like-
• What considerations, trade-offs and constraints is the family minded individuals for support (See resource list for impact
office willing or not willing to accept? investing networks in Appendix B).
• What does the family hope the long-term impact of engaging • Lead from strength: In many cases, identifying the most
with impact investing will be for family members, the broader influential member(s) and getting support can make it easier
community and future generations? to gain consensus from the group and from the advisers who
support them.
• Provide open forum for communications: Support open
Step 2: Determine Engagement Strategy communication across generations, ensuring stakeholders
collectively outline and share both financial and social goals; this
Once the family office’s vision for impact investing is set, how can be done through regular annual or semi-annual meetings
should the family office get started? or retreats with a defined agenda to discuss family values and
investments and review progress against stated goals (see
www.worth.com for sample agenda).
Deepen knowledge of impact investing
• Engage facilitators: A trusted third party can help the diverse
The key to designing a family office’s engagement strategy with family members reach agreement and reduce pressure on
impact investing is to learn more about what others have done the internal stakeholders to be unbiased mediators. Often,
and then decide what to emulate or to do differently. Approaches historic family dynamics and interaction patterns can emerge
to learning can include: during discussions. Independent facilitators can help ensure all
voices get heard fairly and the final outcomes reflect the shared
• Attend impact investing conferences to hear from experts and
interests and values of the family members.
to build a network of experienced contacts
• Learn through desktop research and coursework47
• Participate in knowledge-sharing networks and collaboration/
co-investment platforms48
• Meet with other family offices engaged in impact investing to
share ideas and due diligence
Refer to Appendix B for a list of educational resources, including

publications, investor networks and forums.

Work with advisers
Spotlight: Institutionalized resistance
Family offices vary widely on the level of in-house expertise
and capacity they have and/or outsourced support they need. For many investors, gaining internal alignment among family
Approximately one-third of single family offices reported they members is only the first hurdle. Unfortunately, a second
lacked sufficient in-house investment expertise.49 As many family hurdle might arise when their adviser or CIO (either internal
offices are designed to have lean overhead, external advisers can or outsourced) is conservative in incorporating innovative
play a strategic role in complimenting and augmenting the family strategies, such as impact investing. This resistance
office’s existing internal capabilities. may spring from either a perceived higher risk of impact
investments or a lack of financial incentive for advisers
There are four ways that family offices may rely on external to provide the level of customization and innovation that
support. First, impact advisers can complement the expertise and impact investing requires. As a result, some investors
guidance of traditional investment advisers. Since impact investing have switched advisers to ones who are willing and able
is a nascent sector, traditionally trained advisers may lack the to accommodate their interest in incorporating impact
expertise and experience to evaluate innovative impact strategies. investing into their investment strategy.
Advisers can identify impact themes and facilitate investment
opportunities aligned with the family office’s target impact and In 2014, the Rockefeller Brothers Fund (RBF) ended
overall investment guidelines. Alternatively, advisers can work with a seven-year relationship with their outsourced chief
the family office’s investment staff to identify impact opportunities investment officer (OCIO) because the OCIO firm’s
within particular asset classes. For family offices that do not have business model (100% co-mingled funds of more than a
in-house investment staff, there are consultancies and firms that dozen clients) did not provide sufficient flexibility for RBF
provide full support. to make the desired progress. Through a competitive
search process, RBF hired a new OCIO, an independent
Second, if the family decides to carve out a portion of its portfolio investment services firm, to align their investment goals
for impact investing, it can assign that carve-out to a specialized with their social mission.
impact investment advisory firm or fund manager. Third, a family
office (often one that is already working with an outsourced RBF aims to allocate 10% of assets to impact investments
adviser) can switch advisers to work with a firm that specializes and hopes to exceed this goal over a multi-year period.
in impact strategies (either solely or in addition to traditional The investments will be in clean energy and other
investing). Fourth, due to the escalating cost of in-housing financial sectors that are aligned with other elements of its
expertise over the last decade, a trend towards single family office mission and programs. The investments must have a
staffing focusing on administrative functions while outsourcing CIO measurable impact as well as market-rate risk and return
functions, has emerged. A family might work with an outsourced characteristics, preserving the value of the endowment.
CIO who has impact investment expertise to develop a transition The OCIO firm hired an impact-focused consulting firm
strategy. to assist in this transition. This structure allows RBF to
leverage the experience and track record of a diverse team
The process of selecting an adviser can be complex. Here are of investment professionals in a more affordable way than
some commonly shared tips: hiring an internal CIO.51
• To find the right adviser, assess upfront the fit between the family
office and adviser on:
– Value system, desired impact legacy and overall worldview
Evaluate fit within existing portfolio
– Existing capabilities and skillsets (e.g. investment
management and impact investing expertise) As with all change, key decision-makers need to understand the
– Networks and relationships for sourcing deal flow (private range, likelihood and effort involved in the opportunities as well as
equity and debt investments, relationships with other fund the challenges. For family offices new to impact investing, internal
managers and family offices for co-investment opportunities) champions should present other family members with information,
– Cultural fit (e.g. impatient optimist vs deliberated pragmatist) including examples of impact deals and lists of their peers who
– Communication style (regularity, extensiveness and format of have made impact investments. The family office can assess how
communicating) these investments will fit into current asset allocation framework
and the portfolio’s risk/return.52 Showing decision-makers impact
– Expectations about how hands-on the family office would like
investing opportunities that meet the family office’s financial return
to be with the investment process
requirements and risk appetite can be a solid approach to starting
– Perspectives on risk factors of the portfolio and macro-trends the conversation.
are aligned
• Ensure transparent cost structure, corresponding to the set of According to a 2013 Financial Times survey of family offices, 15%
services required of respondents made investments with impact prior to 2000 while
• Ensure the adviser does not have conflicts of interest (e.g. 29% of respondents made impact investments after 2010 (several
acting as an adviser both to investees trying to raise funds and years after the term impact investing was coined). Of 125 single
investors seeking objective advice on deal flow) family offices, multifamily offices and family-backed foundations
surveyed, 68% consider some portion of their portfolios to be in
Many of the above considerations can serve as guidance in impact investments. In addition, two-thirds of single family offices
drafting the impact investing adviser request for proposal (RFP).50 that are engaged in philanthropy discuss budget allocations to
impact investing while 85% of multifamily offices have at some
point engaged in such discussions with their clients. Yet few have
well thought-out strategies for engaging in impact investing.53

For family offices that have made investments with impact but not Approach A
as part of an intentional strategy, it may be helpful to perform a Test the waters with a smaller portion of the portfolio by: making
retroactive tagging exercise of prior investments to identify areas one-off investments and then gradually increasing allocation if
of positive social and environmental impact. This exercise can things go well; using a donor-advised fund or family foundation to
help to satisfy sceptical family members who fear that targeting pilot impact investments; and allocating a portion of the portfolio to
a positive impact will negatively affect their portfolio’s risk/return impact investing by creating a carve-out. In some cases, the carve-
profile. For example, the ABC family retroactively screened their out is in the form of a separate legal entity managed by impact-
portfolio and learned that as part of their larger fixed income driven family member(s); typically, a carve-out would be roughly
portfolio, they had been investing in bonds that support building 1-10% of the portfolio, and depending on the areas of success, it
schools in Virginia. They then asked their bond manager to can be increased.
expand their allocation to similar bonds, which not only increased
their allocation to impact investing but also left their portfolio’s risk Approach B
profile unchanged. Commit a part of the portfolio to high-impact investments in
impact-focused companies or into funds; a common approach
here is to make direct investments or private equity deals yourself
Four approaches to engage in impact investing
and outsource public equity and debt investments. It is important
to note that investing through funds adds a level of separation
There are several structures that family offices have implemented
between investor and assets. Negotiating strong co-investment
to engage in impact investing. Below are four examples. Often, a
rights can offer a hands-on investor more direct exposure to
combination of these approaches is used to meet the individual
investee companies. Pledge funds or pooled vehicles allow
goals of each investor.54 See Appendix A for details on motivation
investing through a fund while being an active investor.
and context, potential risks and examples for each approach.
Approach C
Test the waters Seed an investment vehicle either through backing an existing
Many family offices, once committed to an impact investing manager/management team with an established track record and
strategy, can spend inordinate time searching for and designing specialization or through establishing a new investment team.
the perfect, first move; yet perfect can easily become the This approach allows asset owners to leverage personal wealth
impediment to action. Starting small or co-investing with others is and institutional capital to scale the market reach and impact of
a recommendable strategy to “get your feet wet”. It builds internal their investment. The advantage of backing an already existing
momentum for impact investing, helps refine the family office’s team is that it can reduce the time and effort required to build a
preferences through learning by doing, and allows sceptical or professional organization with an established investment track
risk-averse stakeholders to become comfortable with the new record thus accelerating fund-raising efforts.
investment approach.
Approach D
Integrated impact across the portfolio55 – create a balanced
impact portfolio by gradually overlaying impact across every
asset class from public equities, fixed income to alternative and
direct investments; a common approach here is to make direct
investments or private equity/debt deals internally and outsource
public equity and debt investments.56
Spotlight: Retroactive tagging

To determine how much of a portfolio is already generating impact, one can review each investment, evaluate it for its social
and/or environmental return, and retroactively tag each investment. These investments can then serve as proof points to
sceptical decision-makers about the financial viability of impact investments. Furthermore, such investments can inform
decisions about where additional impact might be sought (e.g. asset class, geography, impact focus).
To start this process, it might be helpful to first identify commitments in sectors where investors tend to be socially
motivated, such as agriculture, health, education, renewable energy, finance and housing for the poor, and water and
sanitation. When conducting this retroactive tagging exercise, it is important to value quality of impact over quantity of
potentially classifiable impact investments. To understand this sector and its role in your own portfolio, it is better to have an
inventory of investments that are impact investments than to have a large number of ambiguous cases.
Each individual investment can be examined to determine whether at the time the investment decision was made, impact
was a goal of the investment in the first place. This test of intentionality will be helpful if and when the family decides to
engage with the impact investing sector. A number of sector-building initiatives use this test of intentionality to screen for
impact investments that are then assessed on a number of dimensions, including risk/return characteristics and impact
performance.
For more information, see http://reports.weforum.org/impact-investing-from-ideas-to-practice-pilots-to-strategy/

3-3-evaluating-past-impactful-investments-to-create-a-future-impact-investing-strategy.

Step 3: Develop Investment Guidelines Asset allocation-driven
Consider setting the asset allocation framework first and then
The process of formally outlining the family office’s guiding overlaying it with impact investments when the impact theme is
principles is valuable as it can help ensure family alignment while broad and the family office uses a traditional allocation model with
adding a level of accountability. A clear vision of impact areas and moderate risk exposure. With some asset classes, such as public
investment goals which balance the interests of various family equities with many shareholders, the desired impact goals may
members can make the wealth transfer to the next generation be harder to achieve unless the family office becomes an activist
smoother. Regular communication with all the family decision- investor or has significant influence through proxy voting. With
makers – through conference calls, emails, meetings and/or more direct investing (i.e. private equity and real assets) there is
annual retreats – will ensure the family office’s mission and vision more room to influence the investment decisions and manage for
remain relevant, actionable and accountable. impact.59
Formalized impact guidelines can take many forms – and not all See “Performing due diligence in an impact portfolio” on page 17
involve a codified Investment Policy Statement (IPS). For example, for tips on ensuring impact across asset classes.
a family office can create a mission statement or family constitution
that expresses its values and theory of change. A comprehensive Impact theme- or region-driven
IPS typically includes the following elements: family mission, Select impact themes first and then find opportunities to express
financial and impact goals, risk appetite (financial and “impact them across asset classes when the impact theme is specific
risk”), asset allocation targets, metrics (financial and impact), (cause-related, sector-focused or regionally concentrated). Key
benchmarks and reporting details. An IPS should be dynamic and for a balanced portfolio is to focus on an impact theme broad
able to incorporate changes, especially as a family office refines its enough (e.g. climate change mitigation) and not too narrow (e.g.
preferences over time and seeks to pursue investments that better sustainable forestry) so that it would be possible to reflect the
reflect its values and needs.57 impact theme across asset classes.
Focus on direct investing

Step 4: Execute Investment Strategy When the family office has both desire and expertise to focus on
a specific impact area, direct investing is an appropriate option.
Determine an impact portfolio construction model For many first-generation family offices that derived their wealth
Whether a family office chooses a carve-out or an integrated from a particular sector or geography, direct investing for impact
approach, the asset allocation framework should be based on and financial returns can be the best approach. Direct investments
the impact objectives and traditional financial parameters such may include early-stage and angel investing, which are appropriate
as risk tolerance, return objectives, liquidity profile and spending for those with expertise and experience in venture capital. Impact
needs. The below impact portfolio construction models can serve entrepreneurs often view family offices as both strategic partners
as models, either to be adapted purely or as a blend of the two or who share their passion and as attractive, nimble investors. Yet for
three.58 some family offices, early-stage investing may be too risky. Family
offices should consider their risk preferences, liquidity needs and
time horizons when making direct investments, especially when
considering early-stage deals.
Spotlight: Deploying capital purposefully and innovatively

Family offices can build the impact investing sector by deploying their capital in the following ways:
Become a strategic partner with their investees.

Many family offices with sector, geographic or cause expertise can provide strategic advice and active guidance that
improves the investee’s operational strategy and business performance. Additionally, many family offices can gain greater
control in their investments by investing in the general partner. Positioning themselves as an operational partner in a fund,
family offices can gain access to deal flow that is usually reserved for private equity firms as well as receive discounted
management and operational fees.
Provide seed financing in underserved and high-impact markets.

Seed capital is critical for new companies and funds, especially those that are located in places where venture capital and
private equity do not often reach (e.g. sub-Saharan Africa). Family offices can play the role of being an anchor investor in
companies or funds they believe will have a multiplied impact.
Deploy capital to build sector’s infrastructure.

There are increased opportunities to invest in innovative vehicles, instruments and financing solutions such as commingling
funds, social impact bonds or development impact bonds. Family offices can not only pave the way for other investors, but
their investments can also de-risk the impact investing sector so other investors can engage.
Encourage others to participate in impact investing and form syndicates.

Family offices already active in impact investing can serve as mentors and encouraging voices for other family offices to
make impact investments. This allows family offices to meet minimum investment requirement of many funds, have more
operational control and access best in class managers.

A few important considerations in choosing your investment Sourcing investments
guidelines and portfolio construction models:
•F
or family offices with the capacity to source and perform due Family offices have greater flexibility in their mandates than other
diligence in-house, consider narrowing the impact theme to save investors (i.e. pension funds), allowing them to utilize a variety of
time and resources on due diligence. strategies within their capital structure and to invest across asset
classes. For more examples of impact investments across asset
or family offices with specific expertise, consider narrowing the
•F classes, see Appendix B and the Impact Assets Chart.61
focus to that geographic region, sector or cause to ensure both
procedural efficiencies and impact results. Sourcing impact investments presents similar challenges to
• For investment strategies with a narrow impact focus, ensure sourcing “traditional” investments – finding quality investing
the family office has the flexibility to see indirect but equally opportunities that fit a narrow geographic or thematic focus can
important ways to achieve the impact goal. For example, a be time and effort intensive. Syndication of impact investments
family office interested in supporting early childhood nutrition with other like-minded investors can help defray administrative
among children ages 2-5 years old in rural New Mexico might costs, facilitate larger investments and offer access to better deal
find a lack of investment opportunities if the pre-defined flow. Ways to do this include:
parameters limit the options.60 However, if the family office • Actively survey the universe of investable deals (news articles,
considers investments in maternal education and affordable press releases, conferences) as well as develop networks with
supermarkets – and broadens its understanding of its impact experts in the markets and sectors that are of interest to the
target – it can have a larger impact. family office
• Develop relationships with other family offices and join networks
Spotlight: Distinguishing perceived risk of family offices to explore co-investment opportunities
from real risk • Explore opportunities listed on crowd-funding platforms (current
or historic raises where the company may be interested in
Some investments that have a community-oriented or follow-on funding)
social focus are often labeled concessionary when they
• Rely on impact investment advisors and consultants
are not. For example, in the early 2000s, community
development financial institutions were labeled • Explore co-investment opportunities with public sector, other
concessionary given they served poorer households types of private investors and foundations (e.g. social impact
and delivered smaller loans at low interests rates and bonds and commingling funds)62
consequently had higher transaction costs. Yet during the
financial crisis, these CDFIs had stronger balance sheets See Appendix B for a listing of web-based impact investment
than traditional financial institutions and performed better platforms and forums as well as conferences.
financially – both on an absolute and risk-adjusted basis – See Appendix C for sample investment opportunities across asset
than traditional banks. The CDFIs’ strong governance and classes.
commitment to responsible stewardship in the community
ended up benefiting investors. Likewise, many mainstream
investors and advisers assign higher risk to impact
investments today given the focus on impact. It is too early
to conclude whether the impact investments considered
concessionary today will produce above market or below
market returns over the long run. For the time being, it is
important to distinguish perceived risk from real risk.

Performing due diligence in an impact portfolio An important step in investing in public equities for impact is
being able to change corporate behaviour through shareholder
As a greater number and wider spectrum of impact investment engagement and proxy voting. Growing evidence shows that
opportunities continue to become available to investors, it is proxy voting and shareholder engagement can directly influence
anticipated that all asset classes will be capable of delivering risk- corporate and government behaviour. Institutional investors, third-
adjusted, financially competitive and mission-aligned returns to party asset managers and shareholder organizations are leading
investors. this work (see Appendix B for examples of service providers who
support this activity).
In the context of a complete portfolio approach to impact
investing, every potential investment should be evaluated in terms Due diligence for private strategies
of its contribution to the total portfolio. Position levels should For investors for investors able to access private market
be monitored relative to the investment policy, but to the extent investments, alternative strategies are critical components
possible, investors should remain flexible and nimble when faced of an investor’s diversified asset allocation strategies. Private
with changing conditions and in light of new impact information. investments can provide exposure to direct impact in themes
Investors need to balance the impact desired with the impact important to investors such as clean energy and technology,
available. In many but not all cases, it is possible to achieve a community development, sustainable forestry, sustainable
satisfactory balance. ranch land and financial services for base of the pyramid (BoP)
communities.64
The KL Felicitas Foundation mapped each investment to the
foundation’s overall asset allocation targets with attention to Just as in the public markets, private investments require
any overexposure within a particular theme, sector, manager or extensive financial, impact and operational due diligence. The due
company. Sometimes, when the desired exposure could not be diligence process is iterative and non-linear: integrating impact
matched with acceptable impact investments, the foundation criteria into the investment process can surface new quantitative
allocated capital to cash, cash equivalents or short-term debt. and qualitative data points that enhance the quality of due
As the impact marketplace matures across asset classes, the diligence and ongoing monitoring.
incidence of “overexposure” will become less likely. Below are
insights and lessons learned by the foundation for performing due Given the impact investing sector is nascent and the track
diligence on impact investments across asset classes.63 record of many impact companies and fund managers is short,
asset owners can ensure good governance by taking an active
Due diligence for public strategies role in the investee company (a board position or building a
There are three main categories, listed in order of lowest to close relationship with senior management). As with traditional
highest impact, for public equities and debt: investments, the management team is often the key determinant
1. Negative screening (responsible): Investors may opt to apply of success in the impact investments.
negative screens to exclude investments that create harmful
impact such as tobacco, firearms or alcohol. The use of There is sometimes a trade-off between direct investing in
screens can reduce the efficiency of portfolios and may entail the projects or companies that an impact investor finds most
certain risk/return trade-offs. appealing and maintaining a diversified portfolio. Not all investors
will be able to achieve adequate diversification through private
2. Positive screening (sustainable): Investors can include investments by investing with single managers or in deals
criteria for positive impact (e.g. incorporating ESG criteria individually. For such investors, multi-manager vehicles can
or sustainability considerations) into their selection of fund provide options for broader exposure.
managers and investments to ensure their investments do not
only create a negative or neutral impact, but also a positive
impact.
3. Social or environmental themes (thematic): Thematic
strategies focus on a particular social or environmental trend
or sector theme (e.g. digital divide). Managers identify the most
progressive companies (or other issuers) with strong ESG
performance within a given theme and then screen for financial
performance and investment track record. Impact investors
should analyse not only the returns of a strategy, but also
understand the underlying drivers of returns and risk, including
the factors to which each strategy is exposed. As investors
become more comfortable with the impact marketplace, they
can begin to think about “impact allocations” – allocating their
investments optimally across various impact approaches and
target themes – in addition to asset and risk allocations.

Managing risk in impact portfolios
Spotlight: Direct vs public equity There are several risk factors that impact investors should be
investments especially aware of when performing impact due diligence. These
include:66
Within impact investing, many practitioners are biased
• Liquidity risk – Many direct impact investment opportunities are
towards direct investing based on the assumption that
long-term investments without a well-defined exit strategy.
direct investing offers more impact. Yet the operational
risks of such investments are also greater than investing • Fund raising risk – Managers may be slow in raising and
in publically traded companies. Additionally, publically investing capital due to early stage constraints of impact
traded companies have the potential to create impact investing market.
on a much larger scale. For example, Unilever has had • Manager risk – Many managers in impact investing lack track
a global impact on energy conservation and waste records, have smaller asset bases and portfolio breadth, and
reduction through modifying its operations.65 higher turnover due to lower compensations.
• Measurement and reporting risk – Measuring impact is
In some cases, an investment in a publically traded
challenging. If not done well, it can lead to inaccurate
non-impact business can have a greater impact than
assessment.
a private direct investment in social business if the
investment in the public company both results in a • Impact risk – The investment may not produce the desired
disproportionately greater scaling of positive impact impact in the end.67
and there is no off-setting negative impact (e.g. unfair
labour practices or harmful business operations such as Similar to traditional investments, impact investors should remain
deforestation that have large negative impact). aware of potential risks, so that the appropriate steps can be
taken to mitigate or address pitfalls.68

Step 5: Evaluate Portfolio and Adjust strategy
Adjust Investment Strategy
An impact investing strategy should not be static, but rather
regularly refined given the family offices interests, needs and
Monitor impact investments constraints, and the evolving impact landscape. Monitoring and
evaluation not only helps ensure the investment outcomes are
Once investments are selected, the family office can agree on aligned with the values and interests, but also can provide valuable
which metrics should be tracked, measured and reported on learning opportunities for the future strategy. Given that impact
an annual or semi-annual basis. Evaluation criteria can be laid takes time to mature, it is important to be patient and to distinguish
out upfront in the investment policy, but they will also evolve proxies and outcomes from long-run impact and multi-generational
as investments are made, monitored and the impact goals are legacy.
refined.
Impact is relative to the problem being addressed. What was
Actively measuring impact involves the following steps: an impact investment 20 years ago might not be considered an
• Use or create a baseline of standardized indicators; overlay impact investment today (e.g. some assert this is the case with
additional proprietary metrics specific to the impact strategy69 microfinance) and what is an impact investment today (e.g. off-grid
energy access or computer literacy in sub-Saharan Africa) might
• To minimize the burden on the investee, choose a few relevant
not be an impact investment in a decade. Family offices should
indicators and set up systems to streamline the process of
adjust their strategy accordingly, especially when their previous
data collection and analysis (this can be done internally or
impact investments may have had strong results and significantly
outsourced)
reduced the problem.
• Obtain independent impact assessments from specialist
third-party service providers
• Regularly assess the impact performance of investments
relative to the impact targets/objectives
Measuring impact across a diverse portfolio is challenging.

Determining a way to integrate financial, social and environmental
returns in a way that facilitates data collection and simplifies
reporting has become the “holy grail” in impact measurement.
Common formats for impact reporting include scorecards and
dashboards, which can be used for screening investments,
managing performance and evaluation. Once a reporting system
is in place, it becomes easier to track trends, identify patterns
and assess potential risks.70 If a family office does not have the
capacity to monitor impact in-house, external consultancies
abound.
See Appendix B for resources on impact measurement, including

metrics and technological platforms.

Conclusion: Unique
Positioning of Family Offices
to Grow the Impact Investing
Sector
Impact investing is an emerging investment approach that can As each family office is different, there is no one-fits-all approach.
help family offices align their values with their financial goals. Family The World Economic Forum hopes that the approaches outlined in
offices are uniquely positioned to play a catalytic role in the impact this guide will be useful and inspirational for family offices eager to
investing sector. Yet impact investing might not be a suitable include impact investing into their family office strategy.
strategy for all family offices.
For those family offices that decide to engage meaningfully with
The decision for a family office to create an impact investing impact investing as the sector matures, the opportunities to create
strategy is not one to take lightly. Alignment among family multi-dimensional wealth (financial, societal impact and long-term
members on values and needs from the family wealth as well legacy) will be worthwhile.
as how the vision for impact investing would fit with the family’s
long-term legacy are crucial. For the strategy to be sustainable, the For more on the World Economic Forum’s work on impact
family must be clear on return expectations as well as short-term investing, visit http://www.weforum.org/projects/
and long-term capital needs. mainstreaming-sustainable-and-impact-investing

Appendices
Appendix A – Potential Approaches to Structuring

Impact Investing Strategy
Approach A Negotiating strong co-investment rights can offer a hand-on
investor more direct exposure to investee companies. Pledge
Description: Test the waters with a smaller portion of the portfolio funds or pooled vehicles allow one to invest in a fund while being
by: making one-off investments and then gradually increasing an active investor.
allocation if things go well; using a donor-advised fund or family
foundation to pilot impact investments; and allocating a portion Motivation and context: This approach is particularly relevant
of the portfolio to impact investing by creating a carve-out. In for family offices seeking a more direct engagement and are
some cases, the carve-out is in the form of a separate legal entity passionate about a specific issue. In this case, it is helpful to have
managed by impact-driven family member(s); typically, a carve-out venture capital or private equity expertise and the capacity to
would be roughly 1-10% of the portfolio, and depending on the take on a high-touch, time-intensive investment. When allocating
areas of success, it can be increased. to these longer term illiquid investments, the investor needs to
carefully assess its liquidity requirements for the next 3-5 years
Motivation and context: This approach allows one to gain and degree to which these investments may change a risk profile
experience, better define impact areas and gradually achieve of the entire portfolio.
internal buy-in by educating other stakeholders in the process
of making investments. It could be especially relevant for multi- Areas of risk: Operating under misconception that direct
generational family offices with complex family dynamics and investments necessarily create greater impact than investments
decision-making process, those who lack expertise in impact in publicly traded companies, increasing risk profile of the overall
investing or investing in general, and those who lack well-defined portfolio due to higher risk profile of direct investment, lack of
impact theme. liquidity, and high level of commitment in terms of time and effort.
Areas of risk: Smaller asset base of a carve-out can lead to a Example: New Island Capital Management is a multi-family office
lower degree of diversification and a higher investment cost; lack with a mission to help its clients to invest patient capital at scale
of a clearly defined strategy and expertise may also negatively to achieve risk-adjusted financial returns and transform the way
affect performance of the smaller portion of the portfolio. natural resources are used, businesses are built and communities
thrive. New Island invests globally with a focus on the core themes
Example: The HRK Foundation started impact investing with an of sustainable agriculture, communities, alternative energy and the
initial investment into a global public equity manager based in environment. The investments have long-term horizon and span
London. After this turned out to be a positive experience, HRK three asset classes – liquid assets, real assets and private equity.
committed 20% of its foundation assets to impact investing New Island monitors the investments and engages with investee
seeking investments across both public and private strategies.71 companies and third-party managers to help drive financial and
When the Kellogg Foundation decided to pursue its mission- impact performance.73
oriented investment strategy, they first allocated $100 million
of the endowment’s assets to impact investing to test different
Approach C
strategies (from community bank deposits to direct venture capital
deals) and learn from their experience.72
Description: Seed an investment vehicle either through backing
an existing manager/management team with an established
Approach B track record and specialization or through establishing a new
investment team.
Description: Commit a part of the portfolio to high-impact
investments in impact-focused companies or into funds; a Motivation and context: This approach allows asset owners
common approach here is to make direct investments or to leverage personal wealth and institutional capital to scale
private equity deals yourself and outsource public equity and the market reach and impact of their investment. Backing an
debt investments. It is important to note that investing through already existing team provides direct exposure to an established
funds adds a level of separation between investor and assets. platform and a professional investment team while reducing the

time and effort required to build a professional organization with Motivation and context: This approach is relevant for everyone
an established investment track record. However, buying into who would like to align their overall wealth with their values. It is
an already existing team may be limiting in terms of control over easier to adopt this approach as a starting point for highly-driven
investment strategy. Families often form funds when a family family offices with a lean structure and decision-making process.
member would like to take an active investment management Having a broad impact theme will help create a balanced portfolio
role. Then they bring seed capital and investment management across asset classes (it is still possible to have a narrow impact
resources. theme in the direct investment allocation). The approach required
a high degree of engagement in the investment process.
Areas of risk: Operational risks similar to any investment company.
Areas of risk: Inability to achieve desired impact across asset
Example: Family ABC runs a multi-generational family business in classes due to lack of investment opportunities in a particular
the construction industry. sector. In this case, consider broadening the impact theme.
Failure to obtain buy-in of third-party managers.
Over 40% of energy consumption and carbon emissions
relate to lighting, heating and cooling buildings. The effects of Example: Blue Haven Initiative (BHI) is a single-family office based
increasing energy consumption and prices during the last decade in Cambridge, MA. BHI is managed by Ian Simmons and Liesel
precipitated the family’s initial interest to focus on energy efficiency Pritzker Simmons, husband and wife, and their team who are
as a commercially attractive investment theme, while creating a passionate about creating social and environmental impact. BHI
long-term sustainable social impact (i.e. in this particular case invests with a philosophy of high standards, aiming to improve
carbon reduction). social and environmental performance across its portfolio while
optimizing financial returns appropriate to each asset class. BHI
“Company A” is a London-based private equity investment creates a balanced portfolio by investing in a variety of capital
management firm specializing in companies that operate in the types, including equity, debt and real assets, and investing in a
areas of energy efficiency, waste, water and energy generation, variety of impact themes, including renewable energy, affordable
such as recycling electronic waste, water purification treatment housing and health solutions. BHI sources and manages direct
and construction materials. Prior to raising the first institutional investments across four continents and multiple sectors. The
fund, the company built a strong proprietary investment track family office is a member of 100% IMPACT Network, a global
record, allowing the company to attract institutional capital. In peer-to-peer network of asset owners who are committed to
2008, “family ABC” acquired a strategic holding in Company A, aligning 100% of their investments for positive social and/or
while providing the seed capital for Company A’s first institutional environmental impact.
fund. To date, Company A invested over €150 million in a portfolio
of 16 companies, which it actively manages. With this track Public equity and fixed-income investments are often more
record, the company is in the process of raising €300 million for limited in attributable social or environmental impact than other
its second fund from institutional investors, corporates, family asset classes (e.g. private equity, venture capital and real assets)
offices and ultra-high-net-worth individuals. yet exposure to public equities increases portfolio liquidity. BHI
tries to increase the impact of public equities through screening,
shareholder advocacy and proxy voting strategies. Fixed-income
Approach D
investments offer stable income, decrease portfolio volatility
and provide a high degree of liquidity. Often overlooked in the
Description: Integrating impact across the portfolio74 – creating a
impact space, fixed income can offer needed capital for critical
balanced portfolio where over time impact is overlaid across every
public purposes (e.g. municipal bonds). Working closely with
asset class from public equities and fixed income to alternative
their outsourced CIO, an independent investment services firm,
and direct investments. A common approach here is to make
BHI seeks to understand and gradually increase the impact of
direct investments or private equity deals internally and outsource
fixed income using a combination of quantitative scoring and
public equity and debt investments. This approach will include
a qualitative assessment of how the underlying issuers use the
impact investing as well as responsible and sustainable investing.
proceeds. The outsourced CIO also helps screen private fund
offerings for BHI, evaluating managers for maximum risk-adjusted
financial return as well as positive impact.

Appendix B – Resources to Engage in Impact Investing
Further reading
• Guide to Impact investing For Family Offices and High Net Worth Individuals, Julia Balandina Jaquier, 201175
• A Guide to Contemporary Conversations in the North America Social Good Sphere, Catalog
• Investing for Impact: Case Studies Across Asset Classes, Bridges Ventures/The Parthenon Group, 2010
• Solutions for Impact Investors: From Strategy to Implementation, Rockefeller Philanthropy Advisors, 2009
• A Short Guide to Impact Investing, Case Foundation, 2014
• Evolution of an Impact Portfolio: From Implementation to Results, Sonen Capital LLC, 2013
• From Margins to the Mainstream: Assessment of the Impact Investment Sector and Opportunities to Engage Mainstream Investors,
World Economic Forum, 2013
• Charting the Course: How Mainstream Investors Can Design Vision and Pragmatic Impact Strategies, World Economic Forum, 2014
• The Green Money Journal (http://www.greenmoneyjournal.com) – a newsletter that provides resources and contacts for environmentally
and socially responsible investments
• Global Learning Exchange library (http://gle.iipcollaborative.org/resources/) – a knowledge sharing platform that serves as a depository
of research on impact investing and offers educational webinars on various topics
• The Impact Investor: Lessons in Leadership and Strategy for Collaborative Capitalism, Cathy Clark, Jed Emerson, Ben Thornley, 2014
• Priming the Pump: The Case for a Sector Based Approach to Impact Investing, Matt Bannick & Paula Goldman, 2012
Below are sample listings of networks, forums and other resources that offer opportunities for education, knowledge sharing, investment
sourcing and co-investing. Many family office conferences started providing impact investing panels and workshops as well.
Networks and membership associations
• Aspen Network of Development Entrepreneurs (ANDE), US: Part of the Aspen Institute, ANDE is a global network of organizations
that propel entrepreneurship in emerging markets; hosts series of events, trainings and conferences. http://www.aspeninstitute.org/
policy-work/aspen-network-development-entrepreneurs
• CREO: A network of family offices, private investors and advisors with a focus on cleantech, renewables and environmental
opportunities. http://www.creo-network.org
• ClearlySo, UK: A global hub for social businesses, social enterprises and social investments; provides a market place for social
enterprises to find financing from social investors; offers a searchable deal database. www.clearlyso.com
• Enable Impact: A platform created by the joint effort of Enable Impact and The Unreasonable Institute. The online network allows
impact investors, social ventures and impact programmes to connect. http://www.enableimpact.com
• European Impact Investing Luxemburg (EIIL), Luxemburg: An information exchange platform for various stakeholders in the impact
investing space with the goal to contribute to the development of the impact investing sector and promote the sector in Luxembourg.
http://www.impact-investing.eu
• Global Impact Investing Network (GIIN), US: A non-profit organization dedicated to growing impact investing space by providing
opportunities for collaboration and knowledge sharing; builds sector infrastructure and provides services such as Investors’ Council
(an exclusive group for active large-scale impact investors), Impact Reporting and Investment Standards (IRIS) and ImpactBase (online
global directory of impact investment vehicles). http://www.thegiin.org
• Go Beyond, Europe and US: A membership network of angel investors that offers access to deal flow; due diligence and monitoring
services and educational opportunities through trainings and a series of events. http://www.go-beyond.biz
• European Venture Philanthropy Association (EVPA), Belgium: A membership association of organizations interested in venture
philanthropy across Europe; organizes conferences and offers research materials/information. www.evpa.com
• The ImPact.org, US: A membership organization of investors who pledge to track and share the social impact and financial
performance of their investments. http://theimpact.org
• Investors’ Circle, US: An early-stage impact investing network of angel investors, venture capitalists, foundations and family offices.
http://investorscircle.net
• Mission Investors Exchange: Features an extensive library of reports, guides, articles, research, case studies, stories from the field,
investment policy templates, and conference and webinar archives. Members can view a database of mission investments made, lists
of consultants experienced with mission investing, and a library of members’ mission investing contract templates they have submitted
for other members to use. www.missioninvestors.org
• Nexus Global Youth Summit: A global membership of young investors and social entrepreneurs, who come together to discuss, learn,
and collaborate on how to improve philanthropy and social impact. http://www.nexusyouthsummit.org
• Put Your Money Where Your Mouth Is Community (PYMWYMIC), Europe: A community of active investors’ that share knowledge
and experience with the goal of funding impactful companies. http://www.pymwymic.com

•S
ocial Venture Network, US: A network of business leaders, social entrepreneurs and impact investors; organizes conferences and
events; offers information on the social investing space. http://svn.org
•T
he South African network for Impact Investing (SAII), South Africa: Advances the concept, practice and growth of impact
investment in South Africa; SAII hosts a responsible and impact investing conference bringing together investors, social purpose
businesses and intermediaries. http://www.saiin.co.za
•T
oniic, Global: Peer-to-peer network of action-oriented institutional and individual investors with members in over 20 countries.
http://www.toniic.com
•T
PW West: Peer-to-peer platform for innovative philanthropists that provides networking and lifelong strategic education including
innovative set of skills, tools, investment models, and resources for philanthropic giving and investing. http://www.tpwwest.org
•U
S SIF - The Forum for Sustainable and Responsible Investment, US: Membership association for professionals, firms, institutions
and organizations engaged in sustainable, responsible, and impact investment. http://www.ussif.org
•Y
oung Investors Organization (YIO), Switzerland: A global network for “next-gen” families; provides opportunities to build business
and investment partnerships. https://www.young-investors.com
Forums and conferences
•B
ig Path Capital, Five Fund Forum (USA): A forum that periodically showcases five investment funds across the spectrum of
sustainability including clean energy, microfinance, energy efficiency, sustainable agriculture, green consumer products.
http://www.watershedcapital.com/events/five-fund-forum
• Impact Forum by Asia IIX/Shujog (Singapore/Paris): A forum that brings together investors, entrepreneurs and intermediaries in
social finance. http://www.impactforum.asia
•O
pportunity Collaboration, Cordes Foundation’s initiative: A five-day convening of world leaders focused on creating sustainable
solutions to poverty. http://opportunitycollaboration.net
•S
ankalp Forum, an Intellecap initiative (Global, India-based): An annual forum that engages governments, corporations, and
influential platforms like the G8 and G20, media and civil society to drive a paradigm shift in inclusive development approaches.
http://www.sankalpforum.com
•T
he Skoll World Forum on Social Entrepreneurship (UK): An international platform for advancing entrepreneurial approaches and
solutions to the world’s most pressing problems; brings together social entrepreneurs and essential partners in a collaborative pursuit of
learning, leverage and large-scale social change. http://skollworldforum.org
•S
ocial Capital Markets (SOCAP) (Global, US-based): A conference of global innovators, governments, social enterprises, institutions,
foundations, and investors dedicated to increasing the flow of capital to social good. http://socap14.socialcapitalmarkets.net
•T
he SRI Conference on Sustainable, Responsible, Impact Investing (US): A conference focused on investment and practice
management issues including shareholder advocacy strategies and community impact investment opportunities.
http://www.sriconference.com
•T
BLI CONFERENCE: Global learning and networking event series in financial hubs across Europe, Asia and the US; offers learning
opportunities on sustainable investing. http://www.tbligroup.com
Investment opportunities listings
• ImpactAssets 50: A composite list of top 50 impact fund managers categorized by asset class, geographic focus and impact focus.
http://www.impactassets.org
• Impact Alpha: An open data and resources platform that allows to track companies, investors, deals and people in the impact
investing space. http://impactalpha.com
• ImpactBase: A searchable online database of impact investing funds across asset classes, impact themes, geographic targets,
fundraising status, assets under management and other parameters. http://www.impactbase.org
• Impact in Motion 15: Selection of experienced private equity and private debt impact asset managers in the DACH region (i.e.
Germany, Austria and Switzerland). http://impactinmotion.com/en/thought-leadership
• Impact Partners: Managed by Impact Investment Exchange Asia (IIX), the platform connects impact investors with pre-vetted social
enterprises in Asia. http://impactpartners.asiaiix.com
• ImpactSpace: An open data and resources platform that allows to track data on companies, investors, investments and people in the
impact investing space. http://impactspace.org
•M
aximpact: A funding and collaboration platform that links funders with sustainable profit and non-profit initiatives and projects with a
focus on sustainable development, clean technologies and green investment. http://www.maximpact.com
•M
ission Markets (US): A platform offering a broad repository of information and supporting a range of financial products, including
direct private placements, impact funds and structured debt securities. http://www.missionmarkets.com
•S
ocial Stock Exchange (UK): A platform designed to connect the general public (not just accredited investors) with publicly listed
impact investments. http://socialstockexchange.com
•S
ocial Venture Connexion (Canada): An online portal connecting capital-seeking social entrepreneurs with accredited investors via
the MaRS Centre for Impact Investing. http://www.svx.ca
•U
S SIF: Listings of separate account managers and mutual funds in sustainable and responsible investing. http://charts.ussif.org

Shareholder engagement services
• As you Sow: http://www.asyousow.org

• Ceres: http://www.ceres.org
• Proxy Impact: http://proxyimpact.com
Impact measurement tools
• B Analytics: B Lab’s web-based tool which allows users to research companies and funds, access proprietary impact investing market
trend reports, utilize tools to collect impact data on companies/funds and benchmark impact against a global database of private
companies; it also provides PULSE – a portfolio management tool, administered by Application Experts (App-X) that comes pre-loaded
with IRIS metrics, tracks financial, operational, social and environmental metrics, and creates a range of qualitative and quantitative
performance management reports. http://b-analytics.net
• B Impact Assessment: B Lab’s rating system, offers B-Corporation Certification. http://bimpactassessment.net
• Global Impact Investing Rating System (GIIRS): A ratings tool and analytics platform that assesses companies and funds on the basis
of their social and environmental performance using IRIS definitions, and generates data that feed industry benchmarks. www.giirs.org
•G
lobal Reporting Initiative (GRI): A non-profit organization that produces a comprehensive Sustainability Reporting Framework widely
used by companies globally to report their economic, environmental and social performance and impacts. www.globalreporting.org
•H
IP Ratings LLC: A ratings framework applicable across public and private investments that uses data on ESG measures that directly
tie to improved financial metrics. http://hipinvestor.com
• Impact Reporting and Investment Standards (IRIS): Part of GIIN, IRIS offers taxonomy that governs the way companies, investors
and others define their social and environmental performance, incorporates sector-specific best practices and produces benchmark
reports. http://iris.thegiin.org
• Intellecap PRISM (Portfolio Risk, Impact and Sustainability Measurement) (India): A web-based impact fund performance
measurement framework capturing dimensions of impact such as fund manager’s contribution, investee firm’s output and local
investment context. http://prismforimpact.com
• iPAR (Impact Portfolio Allocation Review): A proprietary tool developed by CAPROCK Group to analyse impact strategies, track
impact source, and report impact outcomes within client portfolios across asset classes and grants. CAPROCK plans to make the
framework available publically although the details have not been finalized as of publication date. http://www.thecaprockgroup.com
•S
hujog Assessments: Provides a framework to monitor, manage and report impact and a third-party verification of social and
environmental value creation for social enterprises to enhance transparency and accountability. http://shujog.org/magnify-impact/
impact-assessment
•S
ocial Progress Index: Rigorous index rating the social performance of more than 50 countries. www.socialprogressimperative.org
•V
era Solutions: A Salesforce-based service provider that will set up a data system to track and maintain social impact data. http://
www.verasolutions.org
Family office networks and forums
•A
mericas Family Office Forum: http://www.terrapinn.com/conference/americas-family-office-forum
•A
sk the Circle: https://www.askthecircle.com/about-ask-the-circle.html
•A
ssociation of Small Foundations: http://www.exponentphilanthropy.org/formerly-asf
•C
CC Alliance: http://www.cccalliance.com
•C
onfluence Philanthropy: http://www.confluencephilanthropy.org
•E
uropean Network of Family Offices: http://www.enfo.net
•F
amily Business Network: http://www.fbn-i.org
•F
amily Office Association: http://www.familyofficeassociation.com
•F
amily Office Exchange: https://www.familyoffice.com
•F
amily Firm Institute: http://www.ffi.org
•F
amily Office Metrics: http://www.familyofficemetrics.com
•G
lobal Philanthropists Circle: http://www.synergos.org/philanthropistscircle
•G
lobal Philanthropy Forum: http://philanthropyforum.org
•N
ational Center for Philanthropy: http://www.ncgrantmakers.org/?page=NCFP
•O
pal Financial Group’s European Family Office & Private Wealth Management Forum: http://www.opalgroup.net/conferencehtml/
current/european_family_office_private_wealth/european_family_office_private_wealth.php
•T
able Club: http://www.thetableclub.com
•T
iger 21: https://tiger21.com
•T
he Transitions Program offered by Family Business Magazine: http://familybusinessmagazine.com/index.php?/conferences/transitions

Appendix C – Examples of Options across Asset Classes*
Asset Class Examples

Deposits/Cash • Community Development Financial Institutions (CDFIs) in the US and UK
• Nature Conservancy Note
• Calvert Note
• State Beneficial Bank (SF)
• Charity Bank Deposit
Public Equity • Generation Investment Management

• Trillium Asset Management
• Calvert Solution Portfolios
• Robesco SAM
• Boston Common Asset Management
• Neuberger Berman Socially Responsible Strategy
• First Affirmative SRI Equity Income
• US SIF listings of separate account managers and mutual funds in sustainable and responsible
investing (http://charts.ussif.org/)
Public Debt • TIAA CREF

• Breckinridge Capital Advisors offers sustainable bond strategies in customized separate accounts
• ImpactAssets note
• MicroVest
• Sonen Global Fixed Income Fund
• Nikko Green World Bank Bond Fund
• Access Capital Strategies
• Common Capital
• Calvert Green Bond
• First Affirmative SRI Fixed Income
• US SIF listings of separate account managers and mutual funds in sustainable and responsible
investing (http://charts.ussif.org/)
Absolute Return/Hybrid • Triodos Certificates of Shares

• Skyline Innovations
Private Equity/Debt/ • Many impact investments are private equity/debt investments targeting different impact themes,
Venture Capital geographies and expected return profiles. Therefore, rather than profile a few examples here,
readers are encouraged to examine the GIIN’s ImpactBase database, Impact Assets 50 and
other resources listed in Appendix B for examples of such private equity/debt investments.
Commingled/Risk • International Finance Facility for Immunisation

Sharing Funds • The New York Acquisition Fund
• California FreshWorks Fund
• Global Health Investment Fund
* Examples include sustainable, responsible, and impact investing (SRI) strategies as they can enhance impact portfolio construction
for family offices.

Endnotes
1 rom the Margins to the Mainstream - Assessment of the Impact Investment Sector and Opportunities to Engage Mainstream Investors. September, 2013.World
F
Economic Forum. http://www.weforum.org/reports/margins-mainstream-assessment-impact-investment-sector-and-opportunities-engage-mainstream-i.
2 World Economic Forum Report Series: Ideas to Practice, Pilots to Strategy, http://www.weforum.org/content/pages/report-series-ideas-practice-pilots-strategy.
3 harting the Course: How Mainstream Investors can Design Visionary and Pragmatic Impact Investing Strategies. September, 2014. World Economic Forum,
C
http://www.weforum.org/reports/charting-course-how-mainstream-investors-can-design-visionary-and-pragmatic-impact-investing.
4 here are several key definitional issues. First, it is an investment approach and not an asset class; it is a criterion by which investments are made across asset
T
classes. Second, intentionality matters. Third, the outcomes of impact investing, including the financial return and the social and environmental impact, are actively
measured. For more discussion on the definition and taxonomy of impact investing, visit http://reports.weforum.org/impact-investment/2-definitional-alignment.
5 ccording to Perspectives on Progress: The Impact Investor Survey (J.P. Morgan and the Global Impact Investing Network), 124 impact investment funds manage
A
$46 billion in impact investments. Considering there are over 300 impact investing funds, according to ImpactBase, this estimate is understated.
6 ccording to the 2012 Global Sustainable Investment Review’s estimate (Global Sustainable Investment Alliance), global assets under management in 2012
A
constituted $62.3 trillion; Boston Global Consulting’s Global Asset Management 2014 report estimates $68.7 trillion in global assets under management in 2013.
7 rom the Margins to the Mainstream - Assessment of the Impact Investment Sector and Opportunities to Engage Mainstream Investors. September, 2013.World
F
Economic Forum. http://www.weforum.org/reports/margins-mainstream-assessment-impact-investment-sector-and-opportunities-engage-mainstream-i.
8 Cochell, Perry L. and Rodney C. Zeeb, Beating the Midas Curse. Heritage Institute Press, 2005, p.7.
9 Investing for Global Impact 2014. London: Financial Times Limited,
http://www.socialventurefund.com/file_upload/1392636791_ft_investing_for_global_impact_2014_report-1.pdf
10 Family Wealth Alliance, as cited in https://www.ncfp.org/blog/2013/nov-family-philanthropy-and-impact-investing.html.
11 he goal of this primer is to offer a starting point. Those interested in more in-depth studies should refer to “Guide to Impact Investing for Family Offices and High
T
Net Worth Individuals” by Julia Balandina Jaquier and “Evolution of an Impact Portfolio: From Implementation to Results” by Sonen Capital and the KL Felicitas
Foundation.
12 ontevecchia, Augustino. “There Are More Self-Made Billionaires In The Forbes 400 Than Ever Before”. Forbes, October 2014,
F
http://www.forbes.com/sites/afontevecchia/2014/10/03/there-are-more-self-made-billionaires-in-the-forbes-400-than-ever-before.
13 Global Wealth Databook 2014, Credit Suisse.
14 ontevecchia, Augustino. “There Are More Self-Made Billionaires In The Forbes 400 Than Ever Before”. Forbes, October 2014,
F
http://www.forbes.com/sites/afontevecchia/2014/10/03/there-are-more-self-made-billionaires-in-the-forbes-400-than-ever-before.
15 olomon, Brian. “The World’s Youngest Billionaires: 29 Under 40”. Forbes, April 2013,
S
http://www.forbes.com/sites/briansolomon/2013/03/04/the-worlds-youngest-billionaires-23-under-40.
16 avens, John J. and Paul G. Schervish. “Why the $41 Trillion Wealth Transfer Estimate is Still Valid: A Review of Challenges and Questions”. Boston College Social
H
Welfare Research Institute, 2003. Note: The $41 trillion is the researchers’ low-growth scenario estimate and assumes 2% real secular growth in assets. It will
result in $5-10 billion transfer per annum (Source: Arthur Wood. “Impact Investing: Potential Tool for Development, Total Impact Advisors”, May 2013).
17 Bank of America, as cited in http://legacytracker.com/2014/08/21/preparing-for-wealth-transfers.
18 “ Big demands and high expectations: The Deloitte Millennial Survey. January 2014,
http://www2.deloitte.com/content/dam/Deloitte/global/Documents/About-Deloitte/gx-dttl-2014-millennial-survey-report.pdf.
19 Fidelity Millionaire Outlook, September 2013, http://www.fidelity.com/inside-fidelity/using-an-advisor/fidelity-millionaire-outlook
20 Warner, Fara. “The Power of the Purse: How Smart Businesses Are Adapting to the World’s Most Important Consumer – Women”. Pearson/Prentice Hall, 2006.
21 Boston College Social Welfare Research Institute, January 2003. Available at: http://www.bc.edu/dam/files/research_sites/cwp/pdf/41trillionreview.pdf.
22 State Farm press release, January 27, 2011, http://www.statefarm.com/aboutus/_pressreleases/2011/january/27/american-college-state-farm-center-for-women.asp.
23 “ Women Shun Energy Investments for Socially/Environmentally Responsible Funds”. Spectrum’s Millionaire Corner, April 14, 2011,
http://www.millionairecorner.com/article/women-shun-energy-investments-sociallyenvironmentally-responsible-funds.
24 2013 U.S. Trust Insights on Wealth and Worth: Key Findings, survey conducted by independent research firm Phoenix Marketing International, March 2013.
25 “Harnessing the Power of the Purse: Female Investors and Global Opportunities for Growth”. Center for Talent Innovation (CTI), 2014.
26 “Gateways to Impact – Industry Survey of Financial Advisors on Sustainable and Impact Investing”. Calvert Foundation, June 2012, www.gatewaystoimpact.org.
27 Bank of America, as cited in http://legacytracker.com/2014/08/21/preparing-for-wealth-transfers.
28 ojner, Kristan and Chuck Meek. “Women’s Views of Wealth and the Planning Process: It’s Values That Matter, Not Just Value”. March 2011,
W
http://www.advisorperspectives.com/newsletters11/Womens_Views_of_Wealth_and_the_Planning_Process.php.
29 UN data, as cited in http://unu.edu/media-relations/releases/wwd2014-un-stresses-water-energy-issues.html
30 limate Change Scenarios - Implications for Strategic Asset Allocation”.Mercer (with support from IFC and Carbon Trust). February 2011, http://www.mercer.com/
C
insights/point/2014/climate-change-scenarios-implications-for-strategic-asset-allocation.html
31 The LOHAS Market, http://www.effectpartners.com/onelifetour/the-lohas-market.
32 See “Charting the Course” for detailed examples and the Asset Allocation Working Group report on policy levers.
33 cosystem Investment Partners is a private equity firm profiting from wetlands restoration in Louisiana by selling environmental restoration credits to private
E
developers and government agencies, which need them to offset environmental damage done by their projects. The firm raised $181 million from pension funds,
endowments and high-net-worth family offices.
34 To learn more about Triodos Bank, visit http://www.triodos.com/en/about-triodos-bank/what-we-do.
35 ore on the IFC and green bonds at http://www.ifc.org/wps/wcm/connect/353c8f004325cabfa308ef384c61d9f7/Green+Bonds+March+2014+final.
M
pdf?MOD=AJPERES.
36 More on Michigan’s Long Term Housing Tax Credit programme at http://www.michigan.gov/mshda/0,4641,7-141--21934--,00.html.
37 To learn more, visit http://www.threadneedle.com/media/5036383/en_threadneedle_uk_social_bond_fund_launch_final.pdf.
38 More on LeapFrog Investments at http://www.leapfroginvest.com/lf/about/investors.
39 More on the Social Stock Exchange at http://www.socialstockexchange.com/impact-report.
40 More on Kora at http://www.vital-capital.com/kora-housing.
41 ore on the AfBD Group and energy diversification at http://www.afdb.org/en/news-and-events/article/afdb-facilitates-energy-diversification-and-access-to-
M
clean-energy-with-the-approval-of-a-eur115-million-loan-to-turkana-wind-power-project-in-kenya-11704.

42 More on Equilibrium Capital at http://www.eq-cap.com.
43 “ Investing for Impact: Case Studies Across Asset Classes”. The Parthenon Group, Bridges Ventures, 2010.
http://www.parthenon.com/ThoughtLeadership/InvestingforImpactCaseStudiesAcrossAssetClasses
44 or more examples, refer to “Catalytic First Loss Capital”, The Global Impact Investing Network,
F
http://www.thegiin.org/binary-data/RESOURCE/download_file/000/000/552-1.pdf.
45 o learn more about how the California FreshWorks Fund works, visit http://www.occ.gov/publications/publications-by-type/other-publications-reports/
T
cdi-newsletter/august-2012/healthy-foods-ezine-article-4-ncbci.html#loan.
46 or example, a Jewish family supporting Holocaust remembrance initiatives, or a family with a history of cancer supporting medical research, or a family with
F
entrepreneurial background supporting social enterprises.
47 ission Investors Exchange is working on a number of initiatives to provide education for foundations interested in impact investing
M
(https://www.missioninvestors.org/training-events). Philanthropy Workshop West offers four week-long educational modules throughout the year
(http://www.tpwwest.org/). US SIF offers an online adviser course on SRI investing (http://www.ussif.org/courses).
48 or example, Toniic brings together a peer-to-peer network of experienced and welcoming impact investors, creating a safe space for investors to share, learn
F
together, co-invest and nurture enterprises and funds. Omidyar Network has been a great source of legal and financial advice for high net worth individuals and
family offices.
49 2012 Family Wealth Alliance survey.
50 Sample RFPs are available on the Mission Investors Exchange website at www.missioninvestors.org.
51 “ Rockefeller fund uses outsourced CIO to help achieve mission-related investing goals”. Imprint Capital press release, 29 September 2014,
http://www.imprintcap.com/2014/09/rockefeller-fund-uses-outsourced-cio-to-help-achieve-mission-related-investing-goals.
52 or more information, see http://www.weforum.org/reports/margins-mainstream-assessment-impact-investment-sector-and-opportunities-engage-mainstream-i;
F
http://www.weforum.org/reports/charting-course-how-mainstream-investors-can-design-visionary-and-pragmatic-impact-investing; and http://reports.weforum.
org/impact-investing-from-ideas-to-practice-pilots-to-strategy/4-1-a-portfolio-approach-to-impact-investment-a-framework-for-balancing-impact-return-and-risk.
53 “Investing for Global Impact 2014”. Financial Times, http://www.socialventurefund.com/file_upload/1392636791_ft_investing_for_global_impact_2014_report-1.pdf.
54 Balandina Jaquier, Julia. “Guide to Impact Investing for Family Offices and High Net Worth Individuals”. 2014.
55 ellus Institute’s report “Total Portfolio Activation A Framework for Creating Social and Environmental Impact across Asset Classes” provides a guide with concrete
T
steps to help institutional investors begin working toward a fuller activation of their portfolio, http://www.tellus.org/publications/files/tpa.pdf.
56 onen Capital’s “Evolution of Impact Portfolio: From Implementation to Results” demonstrates to investors that impact investments can compete with, and at
S
times outperform, traditional asset allocation strategies while pursuing meaningful and measurable social and environmental impact results.
57 or an example of a comprehensive IPS, see the F.B. Heron Foundation’s investment policy statement
F
(http://fbheron.org/investments/investment-policy-statement). Other examples are available at the Mission Investors Exchange (www.missioninvestors.org).
58 or in-depth discussion on building impact investment portfolios, refer to “Evolution of an Impact Portfolio: From Implementation to Results” by Sonen Capital and
F
KL Felicitas Foundation.
59 t this stage, finding public debt managers aligned with your impact theme and liquidity requirements might be a challenge. Some examples of the existing
A
options include MicroVest Short Duration Fund, which has a 30-day liquidity option and a competitive return rate. There are also mutual fund options such as
TIAA-CREF. However, these are larger mutual funds and, similar to public equity, some investors may feel that they are not as impactful.
60 rom an interview with John Goldstein, Managing Director of Imprint Capital:
F
https://centers.fuqua.duke.edu/casenotes/2014/06/04/imprint-capital-helping-impact-investors-help-themselves.
61 or examples of impact investments across impact themes and assets classes, see Appendix B and the Impact Assets chart at
F
http://www.impactassets.org/files/downloads/IA_InvestmentThemes.pdf.
62 For examples of layered structures see: “Investing for Impact: Case Studies Across Asset Classes”. Bridges Ventures/The Parthenon Group, 2010.
63 For more information, refer to “Evolution of an Impact Portfolio: From Implementation to Results” by Sonen Capital and KL Felicitas Foundation.
64 ase of the pyramid (BoP) refers to the 4 billion people with annual incomes below $3,000 in local purchasing power. Hammond, Allen, William J. Kramer, Julia
B
Tran, Rob Katz, and Courtland Walker. “The Next Four Billion,” World Resources Institute, 2007.
65 “ In search of the good business”. The Economist, 9 August 2014,
http://www.economist.com/news/business/21611103-second-time-its-120-year-history-unilever-trying-redefine-what-it-means-be.
66 See ImpactAssets’ issue brief, “Risk, Return and Impact”, at http://www.impactassets.org/files/downloads/ImpactAssets_IssueBriefs_2.pdf.
67 more in-depth discussion of impact risk and an impact measurement methodology can be found the following Bridges Ventures report:
A
http://bridgesventures.com/wp-content/uploads/2014/07/IMPACT_REPORT_2013_Final_hiressingle-pages.pdf.
68 efer to Bridge Ventures & Bank of America’s “Shifting the Lens: A Derisking Toolkit for Impact Investors” for methods to mitigate potential risks,
R
http://www.bridgesventures.com/shifting-the-lens-a-de-risking-toolkit-for-impact-investment.
69 Impact Reporting and Investment Standards (IRIS) is a catalogue of generally accepted performance metrics used by impact investors to measure social,
environmental and financial results, http://iris.thegiin.org.
70 ee Aspen Network of Development Entrepreneurs (ANDE): The State of Measurement in the SGB Sector,
S
http://www.aspeninstitute.org/publications/state-measurement-practice-sgb-sector.
71 “ The New Family Philanthropy: Investing for Social and Environmental Change”. Federal Reserve Bank of San Francisco. Working Paper, August 2013,
http://www.frbsf.org/community-development/publications/working-papers/2013/august/family-philanthropy-investing-social-environmental-change.
72 .K. Kellogg Foundation Mission Driven Investments case study,
W
http://www.pacificcommunityventures.org/impinv2/wp-content/uploads/2014/05/casestudy_Kellogg_v6.pdf.
73 Balandina Jaquier, Julia. “Guide to Impact Investing for Family Offices and High Net Worth Individuals”. 2014.
74 ellus Institute’s report “Total Portfolio Activation A Framework for Creating Social and Environmental Impact across Asset Classes” provides a guide with concrete
T
steps to help institutional investors begin working toward a fuller activation of their portfolio, http://www.tellus.org/publications/files/tpa.pdf.
75 A follow-up edition of the guide will be published by J. Balandina in 2015.

Acknowledgements
World Economic Forum
Project Team
Michael Drexler Senior Director, Head of Investors Industries
Abigail Noble Associate Director, Head of Impact Investing Initiatives
Marina Leytes Project Manager
With additional support and gratitude to our colleagues (in alphabetical order): Ann Brady, Maha Eltobgy, Marie Eriksson,
Kamal Kimaoui, Irwin Mendelssohn, Eric Mercep, Jonathan Quigley, Rick Samans, Mark Schulman and Terri Toyota
And additional thanks to: iImpact Consulting Network and Village Print & Media
This publication synthesizes contributions from the following individuals to whom the project team is thankful for
generously contributing their time, energy and insights (in alphabetical order):
Kate Ahern, Case Foundation Michael Lent, Veris Wealth Partners

Danny Almagor, Impact Investment Group Mike Mohr, Omidyar Network
Johan H. Andresen, Ferd Antônio Ermírio de Moraes Neto, Vox Capital
Julia Balandina Jaquier, JBJ Consult – Impact Jenna Nicholas, Phoenix Global Impact
Investment Solutions Raul Pomares, Sonen Capital LLC
Amando Balbuena III, Sonen Capital LLC Liesel Pritzker Simmons, Blue Haven Initiative
Johannes Boch, Impact Investing Latin America Platform (Brazil) Wolfgang H. Reichenberger, Inventages Venture Capital
Sam Bonsey, The ImPact Investment Inc.
Luiza Camargo Nascimento, Camargo Corrêa Group Cristiano Ribeiro do Valle, Tora Brazil
Roberto de Castro Andrade, A&P Participações Michael Rumpf Gail, Gail
Annie Chen, RS Group Steven J. Schueth, First Affirmative Financial Network
Lauren Cochran, Blue Haven Initiative Stephanie Shao Ni Ng, Península Participações
Josh Cohen, City Light Capital Ian Simmons, Blue Haven Initiative
Stephanie Cohn Rupp, Toniic Ingrid Stange, Partnership for Change
Ron Cordes, Genworth Financial Wealth Management Eric Stephenson, Cordes Foundation
Stephanie Cordes, Cordes Foundation Ricardo Sueyasu, Fundação Maria Cecilia Souto Vidigal
Célia Cruz, Instituto de Cidadania Empresarial (ICE) Brazil Julia W. Sze, Sonen Capital LLC
Beth deBeer, iImpact Consulting Network William Tickle, Ballentine Partners, LLC
Michele Demers, Boundless Impact Investing Nick Tiller, Sustainable America
Christopher C. Geczy, Wharton Business School at Spencer Ton, Cordes Foundation
University of Pennsylvania Ivani Tristan, Camargo Corrêa Group
Paula Goldman, Omidyar Network Anna-Marie Wascher, Cantor Fitzgerald LP
John Goldstein, Imprint Capital Karen R. Wawrzaszek, Pitcairn
Natalie Klein, Instituto Samuel Klein Matthew Weatherley-White, The CAPROCK Group
Raphael Klein, Instituto Samuel Klein Arthur R. Wood, Total Impact Advisors
Charly Kleissner, KL Felicitas Foundation and the Leena Ved, Pacific Alliance Capital Group
100% Impact Network
Gijs Voskamp, Ocean Capital
Olivia Leland, Bill & Melinda Gates Foundation / Giving Pledge

Notes and Key Insights

TheThe World
World Economic
Economic Forum
Forum is an
international institution
is an independent committed
international
toorganization
improving the state of the
committed to world
through public-private
improving the state ofcooperation
the world
in by
theengaging
spirit of global citizenship.
business, political,
It academic
engages with andbusiness, political,
other leaders of
academic
society toand other
shape leaders
global, of
regional
society to shape
and industry global, regional
agendas.
and industry agendas.
Incorporated as a not-for-profit
foundation inas1971
Incorporated and
a not-for-profit
headquartered
foundation in 1971 in Geneva,
and
Switzerland, the
headquartered Forum is
in Geneva,
tied to no political,
Switzerland, the Forum partisan
is
or national interests.
independent, impartial and not
tied to any interests. It cooperates
closely with all leading international
organizations.
World Economic Forum

91–93 route de la Capite
CH-1223 Cologny/Geneva
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Tel.: +41 (0) 22 869 1212
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[email protected]
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Industry Agenda

From the Margins to

Impact Investing: A Primer for Family Offices 1

2 Impact Investing: A Primer for Family Offices

Impact Investing: A Primer for Family Offices 3

Impact Investing: A Primer for Family Offices 5

Rising wealth and increased demand from Millennials

Increasing demand from women

The growth in impact investing opportunities

6 Impact Investing: A Primer for Family Offices

Definitional Breadth and Fixed income

Impact Investing: A Primer for Family Offices 7

8 Impact Investing: A Primer for Family Offices

Figure 1: Sustainable, responsible and impact investing

Commodities and hedge funds.

Layed investment structures44

Innovative structures, often hybrid investment products that offer

Impact Investing: A Primer for Family Offices 9

Reach Internal Alignment

Deepen Knowledge, Update and Evolve Impact Investment Vision

Step 1: Define vision Step 4: Execute investment strategy

10 Impact Investing: A Primer for Family Offices

Impact Investing: A Primer for Family Offices 11

Refer to Appendix B for a list of educational resources, including

12 Impact Investing: A Primer for Family Offices

Impact Investing: A Primer for Family Offices 13

Spotlight: Retroactive tagging

For more information, see http://reports.weforum.org/impact-investing-from-ideas-to-practice-pilots-to-strategy/

14 Impact Investing: A Primer for Family Offices

Focus on direct investing

Spotlight: Deploying capital purposefully and innovatively

Become a strategic partner with their investees.

Provide seed financing in underserved and high-impact markets.

Deploy capital to build sector’s infrastructure.

Encourage others to participate in impact investing and form syndicates.

Impact Investing: A Primer for Family Offices 15

16 Impact Investing: A Primer for Family Offices

Impact Investing: A Primer for Family Offices 17

18 Impact Investing: A Primer for Family Offices

Measuring impact across a diverse portfolio is challenging.

See Appendix B for resources on impact measurement, including

Impact Investing: A Primer for Family Offices 19

20 Impact Investing: A Primer for Family Offices

Appendix A – Potential Approaches to Structuring

Impact Investing: A Primer for Family Offices 21

22 Impact Investing: A Primer for Family Offices

Networks and membership associations

Impact Investing: A Primer for Family Offices 23

Forums and conferences

Investment opportunities listings

24 Impact Investing: A Primer for Family Offices

• As you Sow: http://www.asyousow.org

Impact measurement tools

Family office networks and forums

Impact Investing: A Primer for Family Offices 25

Asset Class Examples

Public Equity • Generation Investment Management

Public Debt • TIAA CREF

Absolute Return/Hybrid • Triodos Certificates of Shares

Commingled/Risk • International Finance Facility for Immunisation

• As you Sow: http://www.asyousow.org

Public Equity • Generation Investment Management

Public Debt • TIAA CREF

Absolute Return/Hybrid • Triodos Certificates of Shares

Commingled/Risk • International Finance Facility for Immunisation