This post originally appeared on FINTRX Insider.
Several indicators highlight the continuously growing trend of family offices increasing their allocations to impact focused funds and companies. To understand this trend, let us begin with the overall spike in the prevalence of environmental, social and governance investing. As research continuously suggests that ESG investing is not only ethically responsible but fiscally advantageous, businesses, asset managers and private investment groups have been constructing their strategies and portfolios with ESG considerations. One common argument made by proponents of impact investing is that by tailoring strategies to include ethically responsible opportunities, investors are simultaneously establishing a more sustainable overall strategy.