"Do or Do Not. There Is No Try."
Millennial Led Impact Investing
At Privos Capital, we have personally experienced a huge upwards trend towards millennial-driven impact investing, along with strong commitment to philanthropy.
According to the Economist, growing demand has spurred Wall Street into action. Goldman Sachs now manages $10.5bn in assets dedicated to “ESG” (ie, meeting environmental, social and governance criteria) and a further $70bn in “negatively screened” assets that exclude the manifestly unvirtuous. TPG, a private-equity giant, last month raised a record $2bn impact-investing fund, with the help of Bono of the band U2. The young are SRI’s big hope. Having grown up in a digital age, millennials are both more exposed to the world’s woes, and more likely to use electronic investment tools. This generational change is already visible at universities. Under pressure from alumni, several endowments have promised to clean up their investment portfolios. Business schools say classes related to ESG investment are oversubscribed.
Our firm has experienced that the millennial generation within our family office partners are suspicious of financial institutions. They also believe they can change the world. According to a survey in America by Morgan Stanley, 75% agreed that their investments could influence climate change, compared with 58% of the overall population. Millennials are also twice as likely as investors in general to check product packaging or invest in companies that espouse social or environmental objectives. And, like children of every generation, they influence their parents.
Millennials tend to balk at off-the-shelf products. They “want to express individual values,” says Josh Levin, a co-founder of OpenInvest, a robo-advisor that lets people “swipe” issues into or out of their portfolio—ditching shares in fossil-fuel producers, say, or buying more in ones with good records on LGBTQ rights.
Bloomberg reports that Millennials were the catalyst in the move towards impact investing. OverTwo-thirds of family offices surveyed agreed that families with children born after 1980 would see an increase in requests to participate in impact investing. Nearly half of family offices (47 percent) believe that impact investing is a more efficient use of funds to achieve social impact than philanthropy.” Almost a third of family offices are either somewhat or highly active in impact investing and a further 30 percent said that while they were not currently active, this was likely to change in the future.
Boarding and Prep Schools For Family Offices
We are often asked to weigh in on the appropriate boarding school for the children of our family office partners. Millennials from our family offices attend the most elite US prep school and global boarding schools which include: Exeter, Andover, Groton, Choate, Lawrenceville, Deerfield, Milton, NMH, Hotchkiss, and St. Paul's, as well as Eton and Harrow (UK), Le Rosey (France), Queen's College (South Africa), Ecole des Roches (France), Geelong Grammar School (Australia), Upper Canada, and Appleby (Canada). So, if you or your family are interested in learning about our views and the application process for the various US and international boarding and prep schools, we would be happy to share our experiences with you. We are also happy to discuss our favorite colleges, universities, grad school, and universities and refer you to several leading consultants that can help you with the college and boarding school admissions process.
Ski and Snowboarding Inspiration
Our Millennials and members of our firm are avid skiers and snowboarders who love Squaw, Northstar, Heavenly, Val d'Isere, Courchevel, Klosters, St. Moritz, Zermatt, Les Trois Vallees, Portillo, Verbier, Chamonix, Cortina d'Ampezzo, Aspen, Niseko, Kitzbuhel, Zurs, Madesimo, Taos, Whistler, Banff, Jackson Hole, Sun Valley, Wanaka, Soldeu, Geilo, and others leading resorts. We are also huge fans of Patagonia and its founder Yvon Chouinard, who inspires all of us everyday at Privos Capital. In tribute to the Patagonia founder, we have posted two of the greatest ski and boarding videos ever made that inspires all of us at Privos to soar to great heights everyday: