Impact Investing

We asked half a dozen family office leaders if they had found specific types of investments to be particularly effective in engaging the next generation. Their responses illustrate the variety of ways investments can be used to increase family engagement:

Impact investments achieved a key milestone in 2022: Since that year, they have accounted for a majority of family office investment deals, according to PwC’s “Global Family Office Deals Study 2024.” The report calls this a “significant tipping point” and says next-generation family members are a significant driver of the trend.

Family offices are focusing more on sustainable and impact investments, seeking both financial returns and positive outcomes. They want better data and education to align their entire portfolios with their philanthropic goals, says Andrew Lee of UBS Global Wealth Management.

The $1.1 trillion impact investing market demonstrates that it's now possible to achieve competitive financial outcomes while making a positive social and environmental impact. And family offices are on board.

A recent survey suggests that the field of impact investing is maturing, with increasingly sophisticated ways to approach matching investments with the family’s values.

“We have found impact investing to be a wonderful tool to connect generations that may at first glance look like they have different values and different interests."