Families as Impact Investors: a Toolkit for Purposeful Investing
Impact investing is an approach that seeks to balance financial returns with positive social or environmental impact. Over the past 10 to 15 years, the impact investment field has gained much traction, producing successful companies that deliver financial gains while simultaneously adding value to the ecosystems they exist in.
In the MENA, many established family offices, new investment firms, and individual investors are adding impact investment to their portfolios. Many see this new reality as an extension of traditional philanthropy — a continuation of the legacy of social responsibility built into their operating companies.
Clear strategy is the first step to building a successful impact investment portfolio. However, despite the growing interest and proven efficacy of the approach, there exists a relative vacuum when it comes to available resources in the region. MENA’s Family offices have limited access to outlets where they can exchange thoughts on the topic or access tools to jumpstart their impact investing practice.
Regardless of this lack of resources, the options for purposeful investment are seemingly limitless, and for some, potentially overwhelming. That said, there are a growing number of impact funds or other investment vehicles that first-time impact investors might want to join before considering direct investments. In this article, however, we formulate a few recommendations for family firms to consider when it comes to building their direct impact investing portfolio.
Our GM Farida El Agamy, in collaboration with Beau Seil, an internationally acclaimed impact investment expert, shared key insights and toolkit on impact investing. Read the full article in Tharawat Magazine here.