Each of these areas is designed to identify, train, and activate philanthropists and investors to become impact investors.
Investing with diverse managers provides access to unique investment opportunities that otherwise may be overlooked. Asset owners with more than $50M–including foundations, and high net wealth individuals–who are deeply committed to justice, equity, diversity, and inclusion (JEDI) want to align their assets with those values but lack sufficient investment staff to conduct due diligence on emerging diverse managers.
Impact Finance Center is developing a shared-ownership, due diligence database of emerging diverse managers in all asset classes. A new member-owned organization will hire analysts to conduct diligence on emerging diverse managers; this diligence will be owned by the members and used by their Outsourced Chief Investment Officers, consultants, and internal staff. The newly established steering committee of those asset owners, who altogether control over $25 billion in assets under management (AUM), can help reach our goal.
This sorely needed infrastructure will help to increase allocations to diverse managers and help move them from emerging to established while building capabilities and capacity.
Where do today’s investors go to seek investment education, apart from Wall Street? The market needs additional non-conflicted investor education that will encourage investors to expand their investments beyond Wall Street products.
Impact Finance Center’s Impact Investing Institute offers non-conflicted investor education for individuals and organizations who want to become impact investors. The Institute offers online courses, webinars and recorded Investor Clubs for investors to learn at their own pace and on their own schedule.
Global corporations are increasingly wealthier than many countries. Walmart, Apple and Shell are richer than Russia, Belgium, and Sweden! While free markets have led to prosperity for some, they have generated increasingly harmful inequities across economic, racial, and geographic lines. The current form of capitalism is fundamentally broken and needs a solution to help fix such untenable inequities.
Impact Finance Center is designing and implementing inclusive economy solutions by creating customized corporate curriculums to help investors discover full spectrum capital solutions to their environmental, social, and governance (ESG) challenges.
Most social ventures (nonprofits, etc.) working to solve ESG challenges lack access to investment capital. Meanwhile, investors (i.e., high net-wealth individuals, corporations, foundations, government agencies) desiring to invest in mission-aligned social ventures lack knowledge of investment opportunities.
Impact Finance Center’s MainStreet 2.0 identifies, educates and activates impact investors and connects them with aligned social ventures through various means such as Impact Investing Institute and Investor Clubs.
A trust is an arrangement that allows a third party to hold assets for a beneficiary. Currently, there is no independent trust company focused on impact investing.
We plan to develop the first impact-focused independent trust company in the world, Trustworthy, that will focus on aligning resources with values. Trustworthy will explicitly work with families to define their Investment Beliefs to invest both catalytic capital and market-rate capital in communities of place, interest, and identity. By design, Trustworthy will remain non-conflicted by not investing any assets and will hire investment advisors to manage assets held in trust.