For Profit, For Good

Full title of podcast with Paul Van Zyl

Summary/ description of the podcast goes here. 

The size of the impact investment market is estimated at $502bn. Those attracted to impact investment are not just family offices and foundations but also include banks, pension funds, financial advisers and wealth managers – all of whom are keen to demonstrate empathy with the Next Gen who are determined to invest with care and thought, with a view to making the world a better place while also generating financial returns. For them, it’s for profit, for good.

Ethical investment is increasingly quantifiable and measurable. Environmental, Social and Governance (ESG) criteria helps trustees balance their fiduciary duties with picking the right investment, both in terms of the portfolio and reputation management. It is easier now to assess a company’s environmental stewardship, the conditions its workforce operate in and the transparency of its accounting practices. Software can track and verify ESG performance; capital can be value-aligned.

Social impact investment is good for families, too. Many family offices will experience moments of tension, as younger family members sit across the table from the original wealth creators. Social impact investing breaks down inter-generational barriers and helps create a dialogue. Green investors will be green in their own lives, and they’ll look for businesses which reflect their values.

Those businesses, especially start-ups, will need private capital flowing into them, structured as effectively as possible and taking account of multi-jurisdictional, legal and regulatory matters.

Farrer & Co understands this dynamic and has a wealth of experience acting for such businesses and families, investors and investees, safeguarding the legal and reputational rights of all.