Emerging market family offices emerge on the impact investment scene
Typically discreet, few wealthy families around the world are outspoken about their impact investments.
But those that commit to such investment strategies are having outsized impact. That’s especially true in emerging markets, where impact investment opportunities need more early and catalytic capital.
Their visibility helps set an example for other wealthy families and family offices, which collectively hold more than $3 trillion in assets worldwide.
Singapore has become something of a hub for impact investing, with a concentration of capital and an appetite for collective social and environmental benefit, as well as attractive tax incentives. Tsao Family Office, established by the family behind maritime company Tsao Pao Chee Group, has moved more than 50% of its capital to align with impact and sustainability strategies and has been instrumental in mobilizing the impact community across Asia.
Also in Singapore, Rumah Group, the family office of Stanley and Kathlyn Tan, invests in social housing in Southeast Asia. Kelvin Fu, of Singapore-based Gunung Capital, calls its impact lens “our family’s most valuable asset.” Ecca Family Foundation, linked to the family behind global jewelry brand Pandora, makes catalytic impact investments in Southeast Asia.
In India, Raintree Family Office is modeling climate investing for other wealthy families. A number of other wealthy Indian families are backing climate opportunities through commitments to Theia Ventures.
And in Latin America, Meraki Impact in Brazil is focusing on climate change and regeneration. Mexico-based CO_Capital focuses on solutions to both poverty and climate change. Family office Napali has been integral to mobilizing Chile’s impact investing ecosystem through Chile’s national advisory board for impact investing. Eurocapital, a multifamily office whose clients include families in Chile, Argentina, Peru and Uruguay, invests in climate, education and poverty reduction.
Many such families became more vocal about their impact goals and strategies in hopes of mobilizing other families to follow suit.
“The tipping point was USAID,” Vikas Arora of AVPN told ImpactAlpha at the impact network’s annual convening in Hong Kong. More than 60% of USAID funding went to Asia. The vacuum left has compelled many of Asia’s wealth holders to consider how to merge their business and philanthropic interests.
Top of mind for families in the region are investments in nature, oceans and for Asia’s aging population, said Katy Yung of Sustainable Finance Initiative, a Hong-Kong network of family offices.
For most wealthy families, impact investing is still “experimental.” They’re searching for “real case studies” to prove that impact investing can generate returns.
Ann Tan of the Center for Sustainable Finance and Private Wealth suggests starting impact investing conversations in terms of “doing well by doing good. When you frame it as essential for future-proofing a family’s legacy, the mind and the heart open in a different way,” she said.
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