More and more family offices are motivated to engage in impact investing, as a way to contribute to a sustainable society. Impact investing provides an opportunity to unite families around common values and positive legacies, as well as to engage a younger generation in the leadership of a family office.
At Tat Capital, we see impact investing as the mainstream investment philosophy that underpins every family offices overall investment strategy. There are many Australian family offices pioneering in the impact investment space, with a strong motive to gain above-market returns for their investment.
Over the past 3 years, Tat Capital has commenced the year with our annual flagship events for our family office clients to discuss their various forms of giving through social impact, foundations, charities, private ancillary funds, impact investments and social enterprises. Our themes have evolved from an organisational point of view: 'Hands in Society Head in the Forest' to an individual or family view about 'Money Comes and Goes, Giving Comes and Grows'. Here are the past reflections:
- Charities & Foundation to share resources: There’s an opportunity for Charities and Foundation to share human resources, who are the best in the industry
- Collaborate with other family offices with a similar passion: Families who support a common cause can collaborate on their efforts, especially when it comes setting up a charity
- There should be 4 Charities and 57,203 Financial Institutions: In Australia, there should be 4 major umbrella organisations managing the various charitable causes and 57,203 financial institutions – instead of the 57,203 charities in Australia.
- Private Ancillary Funds and Family Foundations need to align: There should be an alignment in values between the family foundations/PAFs with the investment and business goals
- Millennials think global: Millennials and youngers principals of family offices feel the need for a global outlook on giving
- Next generation to join the board: The next generation to be welcomed into the family foundation board early in their corporate career and start to get involved in the decision-making process
The theme for this year was focused on the wider "Community First, Profits Next"
We take pride in this opportunity to share the philosophy of 'TAT', derived from 'Tat Tvam Asi', a Sanskrit phrase, translated variously as 'Thou art that'. Tat Capital strives for transparency and shared equity in all that we do – 'oneness’ or ‘absolute equality’. The future of business is about collaboration, value addition and innovation, finding better ways of doing things and doing them right so that everyone benefits. By respecting our business partners as much as we respect ourselves and expecting the same in return, we are able to work harder to bring better deals to the table. It is an approach that has allowed us to navigate clients through complex deals; create networks that have connected us to opportunities others don’t see, and brought substantial profits to all.
On Wednesday 13 March 2019 we hosted our annual flagship 'Social Impact Day' at Thomson Geer boardroom in Sydney:
- Keynote was the REAL Impact story shared by Virginia Bruce, CEO & Founder at REAL Impact Investments - partners, nurtures and grows social impact brands and businesses, creating viable shared ecosystems that are inclusive, equitable, sustainable and commercially successful. REAL Impact is currently working with PNG artisans to take Papua New Guinea’s culture to the global US$38billion handicraft market. REAL Impact is creating an economic network that has scale, while delivering real value to where it is most needed in rural PNG. REAL Impact’s work in PNG is supported by the Australian Government’s InnovationXchange and Pacific RISE.
- Fireside chat with Australian RedCross
- Panel discussions with Palmera, GiveEasy and ICC T20 Cricket World Cup
We continued the event at Melbourne on Wednesday 27 March 2019 at Crestone Wealth boardroom:
- Kunal Rastogi opened the event with – Crestone's Socially Responsible Investing philosophy
- Keynote address highlighted an interesting financial inclusion story shared by Jitto Arulampalam - Executive Chairman, Tapp Commerce - enabling the unbanked population to transact online, have the choice of product and price, send and receive money, borrow and lend money. Tapp’s payment and e-commerce platform align the interests of consumers, agents and merchants.
- Fireside chat: ‘Creating Demand for Australian Farming Community’ - with DD Saxena – Managing Director, OilSeeds Australia - independently owned crusher of Cottonseed, producing quality Cottonseed Oil and Premium Protein Cottonseed Meal and Blended Feed Products located at Hillston in the Riverina Region of NSW.
- Panel discussions with ATMA – Founder, Haley Bolding OAM, Thrivor – Founder, Justin McLean and Opportunity International – Chairman, Joanna White.
--> World-Cafe discussions continued with each guest speaker, moving around to groups discussing the Social Impact theme in detail, and here are some of the 'Reflections':
- Keep capital flowing to help create a world where no one is left out: different forms of capital can help solve different types of social challenges. There is a place for philanthropy, social investment and mainstream in capital markets. Building wealth and creating social impact can work side by side to create a better future
Think Community to create a sustainable, long-lasting impact: thinking 'community first' should be an integral part of planning and strategy. Frugal innovation & the ability to continue learning from the community helps us build our organisations with humility and flexibility
No organisation can do it all alone: The need for collaboration is painfully evident. There is recognition of this and more goodwill than ever before to work collaboratively, by capitalizing on our respective strengths to achieve outcomes for the people in need
No single solution or template will work in every situation: Creating bespoke solutions is the key; whether that be supply chain solutions, NFP, corporate partnerships or fund-raising strategies
There is a significant amount of support building both globally and locally for women in sport: Everyone plays an important part to be an ambassador for this change: help generate a conversation with as many people as possible, and showcase the amazing stories of the women who play the sport
Test social ideas and concepts at a small scale to make sure they are making the desired impact: Failure is scary, but charities, funders and donors need to learn that failure is just part of the course of the new big idea
There is a need for greater conversation and dialogue around impact investing, social enterprises and philanthropy in corporate Australia
Unconditional 'Reciprocity' breaks the intersectionality, and helps cohesive thinking
Wealth creation and Social impact are not mutually exclusive
We need to connect more, be open to share and generate more interest in this space
A conversation through such forums - build greater capacity, understand professional diversity across cultures, and help enhance our shared value ecosystem
