“You never change things by fighting the existing reality. To change something, build a new model that makes the existing model obsolete. ” -R. Buckminster Fuller
onto the radar of family offices. The time is at hand for investors and investment committees to move their values to the core of their portfolio decisions. These opportunities must stand up to rigorous due diligence processes and risk return parameters of any allocation. The key will be to have the ability to gauge opportunity alongside measurable impact. These dual mandates are achievable and will provide families with the long-term wealth creation embedded in successful family offices as they deploy multigenerational capital. The growing trend of families collaborating on direct investments will be a definitive catalyst for these strides forward. The thoughtful process of choosing our partners and focus of our capital is a statement of our inherent choices. Given the long-term nature of family capital, even at the most opportunistic level we can express a vision of how we are shaping the future. New investment structures that align the interests of capital providers and asset managers are evolving to facilitate this secular trend. Family offices are asset owners of what is designed to be permanent capital when their mission is successful. We are moving from philanthropy as the expression of our legacies to the active creation of new industries and economies. At i(x) we call this “Profit With Purpose” and our focus is investing in companies that address the most pressing areas of global need. To date, we’ve launched platforms in the following issue areas: Renewable Energy, Green Commercial Real Estate, Gender Equality, Media, Education, Fair Insurance and Workforce Housing. Over $100 trillion is currently invested in private wealth accounts around the world—and the vast majority of it has been invested without any consideration of social impact. This presents an exciting opportunity for high-net-worth families, and those who advise them, to align their investments with their values and to profit with purpose.
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