Family Offices in Asia Embrace Impact Investing and Philanthropy: AVPN CEO
Family offices in Asia are increasingly turning their focus towards impact investing and philanthropy, with a growing interest in seeking co-investors for such initiatives, according to Naina Subberwal Batra, CEO of AVPN, a network of impact investors.
Batra highlighted that family offices are the fastest-growing segment of AVPN’s membership, with strong interest coming from Singapore, Hong Kong, and India. As the younger generations of wealthy families take over, priorities are shifting towards more sustainable and socially responsible investments.
“Wealth is being transferred to the younger generation, who are educated overseas and are keen on following a different path from their parents,” said Batra. This shift has led many families to move from traditional assets to more liquid investments, making investments a key focus for their operations.
Technology is a popular sector for investment among family offices, with a particular interest in financial tech, health tech, and education technology. When family offices join AVPN, one of their main goals is to connect with like-minded peers and potential co-investors.
In addition to investment opportunities, AVPN offers training programs on topics such as investing with a gender lens, providing members with valuable insights and knowledge sharing opportunities. The organization recently launched ImpactCollab, an outcomes-based investing system aimed at facilitating philanthropic giving and impact investing across Asia.
Despite the politicization of ESG (Environmental, Social, and Governance) investing in the US, Batra noted that institutional investors and family offices in Asia are increasingly focusing on sustainable investing. Regulators in countries like Malaysia and Singapore have also been encouraging a greater emphasis on ESG investing.
Overall, the rise of family offices in Asia, coupled with a growing interest in impact investing and sustainability, is shaping the investment landscape in the region. With a focus on creating positive social and environmental impact alongside financial returns, family offices are playing a significant role in driving change and fostering a more sustainable future.