Many families are concerned about managing wealth responsibly and aligning their investments with their values. Parents may want to teach their children to be good stewards of money, while young people increasingly seek to invest in meaningful ways. Impact investing is about deploying capital to achieve positive social and environmental change while pursuing competitive financial returns.
Colorado Capital Management is a leader in the impact investing field. Our passionately committed professionals can help your family choose from a wide range of both public and private socially conscious investments.
The Andersens, Multi-Generation Family Seeking Responsible Investments
Long before Jim and Margaret Andersen realized $15 million from the sale of their health care business, they knew they wanted to deploy their windfall in a socially responsible manner. Part of the proceeds went into a charitable foundation, and all of the money was invested for impact. They wanted to involve their adult children in operation of the foundation and earn market rate returns on their assets, while simultaneously making a positive, measurable impact. Key areas of interest included health care, poverty alleviation, education and the environment. Seeking expert guidance, they came to CCM for advice.
- Seeking assistance with wealth management
- $15 million in investable assets
• Investing the family’s money in ways that support their values
• Earning market-rate returns on investments
• Engaging adult children in philanthropy and understanding the “real” meaning of wealth
Financial Planning & Investment Needs
- Complete review of all current investments to divest from those that did not reflect the family’s values, such as legacy holdings in fossil fuels.
- Screening and selection of new investments to redeploy capital in ways that support the family’s desire to promote clean energy, health care advances and other worthy causes.
- Developing a succession plan to transfer first generation wealth to second and third generations.
- Setting up a family foundation for tax, philanthropic and personal/family reasons.
To start the process, CCM’s impact investing specialists met with the family to understand their vision. Next, CCM developed a plan to invest the family’s money for maximum impact. As Jim and Margaret learned more about impact investing from CCM’s knowledgeable team, they realized that many of the issues they cared about went beyond what the government and non-profit sectors could address. As social entrepreneurs themselves, Jim and Margaret came to understand the power of business to address society’s biggest challenges. They saw impact investing as a way to lower their financial risk and grow their assets, while helping others and increasing their peace of mind about how their money was invested in the world.
CCM also worked with the Andersen’s children to address the causes they cared about. Their oldest child, Sam, wanted to invest in water and land conservation, sustainable timber and alternative energy projects in the United States. The middle child, Ben, sought to address lack of access to basic services, such as clean water, electricity and health care—major problems for much of the developing world. Leah, the youngest child, focused on investing in sustainable agriculture and nutrition in public schools. Through extensive research and due diligence, CCM was able to find suitable and attractive impact investments in each of these target areas.