Full Article Link: Crain Currency – The Growth and Evolution of Family Office Impact Investing
“If you wanted ESG three to five years ago, you could go to any bank, and they would have an ESG fund for you to invest in. We’re starting to see the focus shift into: ‘What can we do on a local level?’ ‘What can we do on a smaller scale?’ Not necessarily the project being small but a more focused scale. Let’s find projects that we’re passionate about and that we can get into.”
—Stephan Shipe, Founder of Scholar Financial Advising
Key Takeaways
- Family Offices Are Leading the Shift to Impact Investing
According to PwC’s 2024 Global Family Office Deals Study, impact investments now account for over half (54%) of U.S. family office deal volume—more than doubling since 2015. Interest is driven by a desire to align capital with values and respond to global challenges. - The Definition of ‘Impact’ Is Evolving
Impact investing is increasingly distinguished from politicized terms like ESG and DEI. As Bobby Turner of Turner Impact Capital notes, “Impact investing is not an asset class. It’s just a business strategy.” The focus is shifting toward measurable outcomes and tangible community results. - A Move Toward Local and Focused Projects
Dr. Stephan Shipe observes a shift away from broad ESG funds toward more intentional, project-level impact investing. Today’s investors want control and connection to their investments—whether it’s improving housing, education, or sustainability within their local communities. - Returns and Purpose Are Not Mutually Exclusive
Skepticism about performance persists, but data and experience tell a different story. Turner Impact Capital’s first housing fund delivered a 25.2% net return while maintaining affordability—proving impact and strong returns can coexist. - Generational Transition Is Accelerating the Trend
With $84 trillion in wealth expected to pass to younger generations by 2045, family offices are preparing for a wave of next-gen investors who prioritize environmental and social change. Millennials and Gen Z are influencing older generations to adopt more values-driven legacies. - Patience and Long-Term Thinking Are Key
Impact strategies don’t fit the quarterly-return mindset. Family offices, with their built-in long-term outlooks and flexibility, are uniquely positioned to lead sustainable capitalism—investing not just for returns, but for resilience and relevance.