The world’s richest families are increasingly investing their money in good causes, giving a boost to the growing, if still challenged, impact investing space. More than a quarter (28%) of ultra-net-worth “family offices” are now putting money into social and environmental areas. And, as younger generations take the reins, that percentage is likely to rise significantly in the years ahead.
Campden Wealth, a specialist U.K. research group, and UBS, the Swiss investment bank, surveyed 262 family offices with average assets of $921 million. Two-fifths (40.4%) expect to increase their allocations toward areas like education, environmental and resource efficiency, conservation, agriculture and food, and healthcare and wellness in the next decade or so.
“This is an area that’s really worth watching. While we’re at 28% now, we could see a significant shift in impact investing over the next 10 to 15 years as the next generation takes control of the family wealth,” Rebecca Gooch, Campden’s director of research, tells Fast Company.
The research echoes several other analyses. Morgan Stanley’s “Sustainable Signals” report, released in August, found that millennials are twice as likely as other investors to seek out impact-type returns alongside financial ones. And they’re going to have plenty of money to play with. Millennials will inherit up $59 trillion between now and 2060, the largest intergenerational wealth transfer in history, according to the Center on Wealth and Philanthropy at Boston College.