This practical measurement of impact is now


available through environmental and social analytics providers, including Madeira Global, which was co-founded by Alexandra Cart and provides data-driven analysis to wealthy families, and B Analytics. Neichin says in order to find deals, Ceniarth


has built networks in places like India, Africa and South-East Asia. It began operations in 2013 and runs three parallel strategies in the office: A general responsible investing mandate; a more radical impact investing arm accepting below-market rate returns; and a grant-making arm to address problems that are not return-generating. “Sourcing [impact] deals has not actually


been a problem at all,” Neichin says. “The issue is that the places we work in


are very difficult, the business models are nascent, anything that can go wrong, will go wrong, and they are just hard deals to pull off successfully.” Up to 54% of family offices surveyed in


the GFOR say their impact investments target education, with other favoured areas including energy and resource efficiency (50%) and environmental conservation (46%). The family offices that impact invest are often active in more than one sector. Family offices in North America and Emerging Markets were the most enthusiastic impact investors, with 31% of respondents in these regions saying they now held investments which are impact-orientated. For Treehouse Investments—a US-based


impact-dedicated family office run by Anne Amanda Bangasser, Dominique Bangasser Slavin, and Raoul Slavin Julia—the entire philosophy is based around protecting the climate. Each investment is assessed according to


the extent to which it reduces greenhouse gas emissions, empowers women, and catalyses a shift of capital to sustainable industries and business models. Treehouse sees women’s empowerment as vital to climate change, as a more educated female population helps control growth and resource consumption. Anne Amanda Bangasser points out that


in order for families to have sustainable investments, businesses, and philanthropic endeavours at all in the future, climate needs to be addressed.


ISSUE 72 SUPPLEMENT | 2017 “As far as we can tell, all the areas we could


invest in—like poverty alleviation, or culture— will not matter as they are all dependent on climate change.” Other GFOR family offices simply thought


profit-making and philanthropy should be kept separate. The average family office gave $5.7 million to philanthropic causes last year, with one respondent commenting: “Let us do the best job we can at making money. Then that gives us more money and resources to give.” He then conceded: “But that may be old thinking.


And I suspect that we may look at that a little more over the next few years. The next generation cares more and more about social impact investing and how we invest”. Susan Ward, head of UK global family offices at


UBS, says millennials are indeed the driving force. Feedback from UBS clients mirrors what was found by the GFOR—about 30% are involved in impact investing, and 30% are looking to become involved in the next 24 months. “In contrast, 90% of our clients tell us they are


actively involved in philanthropy. “One of the key things in encouraging people


to transition from philanthropy to impact, is that impact has the ability to be sustainable over the long term. It has the ability to make a real long-term difference, where people invest and reinvest, and family money continues to grow. But, what is really important is impact investing does not detract from what you can achieve using philanthropy.” The rising influence of socially-conscious


millennials in wealthy families means impact investing is only set to skyrocket. Family offices should get ready to be swept into the mainstream


Above: Madeira Global co-founder Alexandra Cart


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impact [investing] has the ability to be sustainable over the long term. It has the ability to make a real long-term difference, where people invest and reinvest, and family money continues to grow


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