MOST COMMON CHALLENGES FACED IN IMPACT INVES TING


Difficulties measuring social / environmental impact Due diligence challenges


Difficulties identifying attractive deals / funds or lack of deal flow Market at early stage / immature Lack of track record data on performance Lack of supportive / knowledgeable advisers Returns don’t meet expectations Lack of government support Lack of time / staff resources High levels of risk


Insufficient knowledge / skills Scale of the deals (too big / too small) High costs


52% 43% 40% 32% 31% 29% 22% 22% 20% 20% 20% 17% 11%


One next generation family member


and partner from a European single family office—who wishes to remain anonymous—says being clear about expectations is key to measuring investment success. “How do you measure the benefit of


impact investments made to education in the developing world? It is challenging enough to know if the standard of education being delivered is good enough, if it is being delivered to the intended recipients, or to know how the children use their education to better themselves in the future. “Due diligence, identifying expert


Source: The UBS / Campden Wealth Global Family Office Report 2018


Note: Respondents were able to select multiple options


advisers and understanding what sort of services at KPMG, agrees and says it helps to have a view of where on the impact-to-return spectrum families want to sit. “Are they undertaking this exercise because


they want to create a particular impact first and foremost while hopefully generating some financial return, or are they focused on generating good financial returns by investing in businesses which are more impactful? Both options are available, but it helps both the family and, ultimately, the company or fund they are investing in, if their expectation is clear at the outset.”


FAST FACTS


38% 45% 32% 51% $5m 70%


NOW ENGAGED IN SUSTAINABLE INVESTING


PLAN TO INCREASE THEIR SUSTAINABLE INVESTMENTS


INVOLVED IN IMPACT INVESTING


IMPACT INVEST IN EDUCATION


PER FAMILY OFFICE TO PHILANTHROPY DURING 2017


Source: The UBS / Campden Wealth Global Family Office Report 2018


RUN THEIR OWN CHARITABLE CAUSES


ISSUE 75 SUPPLEMENT | 2019 CAMPDENFB.COM 15


60% 50% 40% 30% 20% 10% 0%


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