Date: Oct 28 2020
While families have a growing desire to participate in impact investing, return profiles have had the reputation for being lower to other asset classes. But this is changing quickly.
FOX welcomes two experts and thought leaders in their fields, John C. Maxwell, III, CEO at SteepRock Advisors and Manish Nayar, Founder and CEO of OYA Solar to discuss.
Maxwell begins by sharing that natural capital will have significant secular and structural implications on a global basis for the next few decades. What is meant by natural capital economy? Maxwell simply merges the natural resource piece, the capital piece, and that is natural capital.
Maxwell walks us through some macro trends, and shares that natural capital requires a fundamental rethinking of how to frame asset allocation in the context of a resource-constrained world. Investors need to think about a number of things that impact asset allocation:
- Portfolio construction
- Risk management
Maxwell asserts there will be a transfer of value from the “dirty economy” to the “cleaner natural capital economy,” akin to the recent transition from the “brick and mortar” to the virtual company.
The investment opportunity boils down to this – invest in market opportunities which will grow as part of the solution to economic recovery, such as energy efficiency, water and infrastructure, agriculture and forestry, water rights, carbon credits and agri-bio.
Nayar shares macro trends he’s seeing in the industry and also some of the opportunities.
Miguel López de Silanes Gómez is the market leader for Europe and Latin America at Family Office Exchange (FOX). He is responsible for delivering FOX services to current members, and also actively works to expand the network in Europe and Latin America. His base is in Madrid, but he spends half of his time in Latin America.
Areas of Expertise: Enterprise Families, International Trends