Explore Impact Investing with Donor-Advised Funds
How can you ensure your investment delivers real impact as well as market rate returns?
Despite the dramatic growth in impact investing, challenges remain in identifying and executing on financially-compelling, direct investment opportunities that will yield real social or environmental benefits.
LOHAS Advisors empowers individuals and organizations to generate the impactful outcomes they desire.
“Some newcomers entering the [impact investing] market may be bold in their pursuit of impact, and others may be more incremental and cautious; for those who choose to start more incrementally, we wish to embed the mindset that this is the first step in their journey, not the final destination.”
– Amit Bouri, CEO, Global Impact Investing Network
Impact Investment
Asset Classes
- Direct private equity 76%
- Real estate (e.g. green buildings, affordable housing) 32%
- Private equity funds 24%
- Infrastructure (e.g. renewable energy, public transportation) 18%
- Direct private debt 15%
- Public Equity 13%
- Private debt funds 10%
- Cash & cash equivalents 6.5%
- Public debt 0%
Source: The UBS/Campden Wealth Global Family Office Report 2019
“Two years ago, 10% considered mission to be important, now… 40% of family offices are already expected to align their portfolios more closely with social and environmental values.”
– Mark Haefele, Global Chief Investment Officer, UBS Wealth Management
Impact Investment Sectors
- Education 45%
- Agriculture & Food 45%
- Energy & Resource Efficiency 43%
- Health care and wellness 38%
- Environmental Conservation 34%
- Housing & Community Development 34%
- Sustainable consumer products 29%
- Job creation 26%
- Women’s Empowerment 26%
- Access to finance 22%
- Sustainable infrastructure 22%
- Infrastructure 11%
Source: The UBS/Campden Wealth Global Family Office Report 2019
“Let’s get real – individual investors have no sway in the public markets. The place where individual investors can have the most impact – by far – is in providing direct growth capital to private companies and social enterprises. Instead [we are] giving investors an (arguably) false sense of doing good through ESG funds…”
– Don Shaffer, former CEO, RSF Social Finance
Impact investments are meeting or exceeding financial expectations for 91% of investors.
Fast-growing and creative sources of capital are now being used for direct impact investing.
Source: 2019 Donor-Advised Fund Report, National Philanthropic Trust.
Source: 2019 Donor-Advised Fund Report, National Philanthropic Trust.
Despite the dramatic growth, obstacles for impact investors remain
Most common challenges in impact investing
Areas addressed by LOHAS Advisors
Source: The UBS/Campden Wealth Global Family Office Report 2018
Note: Respondents were able to select multiple options
Source: The UBS/Campden Wealth Global Family Office Report 2018
Note: Respondents were able to select multiple options
Areas addressed by LOHAS Advisors
Our Guide to Impact Investing
For Family Offices, Foundations, and the Social-Minded
A Primer on the dramatic evolution of the social and environmental impact investment market
Who We Help
Those who can, want to do more. Impact investing and venture philanthropy are coming together to make the social changes in areas important to them. Direct private investing is the mechanism best suited to deliver real impact. LOHAS Advisors provides greater visibility into the innovators making a difference and looking for the right financial partners.
Family Offices
Family Offices
Financial professionals serving wealthy clients may be asked to identify or perform due diligence on direct social or environmental impact investments or may want to expand their practice to incorporate these type of investment options.
HNWI’s & UHNWI’s
HNWI’s & UHNWI’s
High and ultra-high net worth individuals may want to move beyond public ESG investing to have a more significant direct impact on causes important to them but need help developing and executing a proactive, impact investment strategy.
Wealth/Asset Managers & Investment Advisors
Wealth/Asset Managers
Financial professionals serving wealthy clients may be asked to identify or perform due diligence on direct social or environmental impact investments or may want to expand their practice to incorporate these type of investment options.
DAF’s and DAF Sponsors
DAF’s and DAF Sponsors
Parties creating donor-advised funds (DAFs) as well as DAF sponsors looking to help their clients distribute funds more effectively may need assistance identifying or performing due diligence on direct social or environmental impact investments.
Foundations
Foundations
Foundations may recognize that their portfolios do not fully match their mission and want to use PRI’s or other investment mechanisms to make direct impact investments but need support or additional resources to help identify and analyze these opportunities.
Corporations
Corporations
Corporations seeking social or environmental impact investments and to bolster their brand and align better with tomorrow’s thought leaders may benefit from deal sourcing strategic support or help leveraging investment mechanisms unique to the impact sector.
Venture & PE Funds
Venture & PE Funds
Venture and private equity fund managers targeting social or environmental impact investors may benefit from guidance on better positioning their fund offerings for that audience and then with tracking impact performance to satisfy the demands of those investors.
Real Estate Developers
Real Estate Developers
Real estate developers seeking to take advantage of the green building zeitgeist or capitalize on opportunity zone investments may benefit from deal sourcing support or guidance on how to make the most of project financing approaches.
How We Help
LOHAS Advisors supports clients in satisfying direct impact investment demands
We're here to help you evaluate:
- Market trends (to educate and determine optimal areas of focus)
- Investment portfolio strategy (to set the direction for the initiative)
- Investment types (to establish parameters for deal identification)
Ultimately, LOHAS:
- Sources targeted investment opportunities
- Performs due diligence
- Supports execution and helps realign priorities
Donor-Advised Funds and Impact Investing
“Investors have been thinking for decades on how to get harmful things out of their portfolios, but [impact investing] is about proactively investing in solutions. It is that much more intentional step about investing in things like climate change directly.”
– Amit Bouri, CEO of the Global Impact Investing Network
LOHAS follows an internationally accepted process to ensure investment alignment.
Define Vision
- Clarify motivation and context
- Define impact goals and evaluation criteria
Determine Engagement Strategy
- Evaluate fit within
existing portfolio - Decide on impact portfolio construction approach
Develop Investment Guidelines
- Review existing or develop new investment guidelines, integrating impact goals
Execute Strategy
- Source investments
- Perform due diligence
Evaluate Portfolio and Adjust Strategy
- Monitor financial and impact results
- Evaluate outcomes and adjust your investment strategy
Define Vision
- Clarify motivation and context
- Define impact goals and evaluation criteria
Determine Engagement Strategy
- Evaluate fit within
existing portfolio - Decide on impact portfolio construction approach
Develop Investment Guidelines
- Review existing or develop new investment guidelines, integrating impact goals
Reach Internal Alignment
Execute Strategy
- Source investments
- Perform due diligence
Evaluate Portfolio and Adjust Strategy
- Monitor financial and impact results
- Evaluate outcomes and adjust your investment strategy
Implement and Evaluate
Reach Internal Alignment
Implement and Evaluate
“Why not invest your assets in the companies you really like? As Mae West said, ‘Too much of a good thing… can be wonderful.'”
– Warren Buffett
Principal Advisors
Dan Hughes
Rick Davis
Tami Kesselman
Jared Gonsky
Will Nix
“LOHAS” is a market segmentation term that stands for “Lifestyles of Health and Sustainability” and refers to that portion of the population that aspires to a healthier and more socially and environmentally conscious way of life and makes investment and buying decisions accordingly.
LOHAS tailors its advice to support the passions of its clients and ties those activities to the United Nations Sustainable Development Goals for tracking purposes.
Source: United Nations Sustainable Development Goals
