Impact investing industry has been attracting interest of various asset owners, like the insurance companies, pension funds, traditional banks, commercial PE/VC investors, foundations and family offices. Globally it is being observed that HNIs/family offices see value in investing in impact to help inculcate responsible long-term investing practices intergenerationally. Additionally, family offices have greater discretion on their investment decisions and are not bound by regulations like most other asset owners.

In the context of India, only a tiny proportion of the total HNI investment is directed towards budding entrepreneurs or start-ups. With increased awareness about more sustainable practices, a lot of family offices would keenly look at social and environmental impact while making philanthropic investments, are also more strongly considering ‘impact investing’ on their asset side. If that trend succeeds in leveraging more funds towards social impact, it will accelerate the growth of the industry.