We recognize that each family is unique and at a different point in its impact investing journey. As such, there is no single path to follow — the right team will depend on your family’s unique goals, constraints, and context. Your journey should thus be grounded in a clear sense of what you hope to accomplish through your impact investing program
- Identify Your Motivations and Goals: What motivates your family? What issues are you and your family most passionate about solving? Do you want to grow your assets or just preserve your wealth? What values do you hope will guide future generations who will steward the family’s wealth?
- Determine Your Guiding Inputs: Depending on your goals and motivations, you may find your family prioritizes some guiding inputs over others.
- Resource Allocation: How much investment capital do you plan to deploy toward impact?
- Existing Infrastructure: Will you integrate impact investing into existing investment structures, or will you set up a new entity?
- Family Involvement: How hands-on will family members be in the investment process (e.g., sourcing, due diligence, execution, and portfolio management)?
- Portfolio Considerations: What are your targets for financial return, risk, and the type of impact you want to have?
- Evaluate Various Team Structures: Some families choose to build a dedicated in-house team uniquely tailored to their impact investing goals, while some prefer an entirely outsourced team. Still others establish something in between. We have highlighted three potential team structures, but families often mix and match different elements of these models to create one that is just right for them. A
- Build Your Team: Don’t let capacity gaps slow down your family’s impact investing journey. Overcome the challenge of building the right team by taking a complete human capital systems view. Look at your family’s impact investing strategic priorities. Do you have the capabilities needed to deliver on your goals? If not, how should you develop or acquire them? Continue to refine this thinking over time. Changes in priorities often require corresponding changes to capabilities needed and subsequent talent to deliver.
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