NextBillion - An Initiative of the William Davidson Institute at the University of Michigan

Thursday, October 3, 2019

By Francois Botha

Impact investments are designed to generate a measurable, beneficial social or environmental impact alongside a financial return. They have become a focal point for a growing number of asset owners when questioning whether they could do more than manage their assets for financial performance alone.

The principles behind impact investing also align with the millennial mindset of making the world a better place while generating profits. Investing in these purpose-driven business initiatives is a great way for family offices to engage the next generation.

Still, many believe that impact investments mean higher risk than other forms. Are the traditionally held beliefs regarding costs, due diligence and extended return timelines a true reflection of modern impact investing? Does investing with your values mean you have to sacrifice on returns?

Photo courtesy of Sudipto Sarkar.