Builders Vision, billionaire Lukas Walton’s philanthropic and investment platform, has turned its $1 billion endowment into what it calls “impact investing,” leading to a broader shift in strategies. family office to connect their investment and giving.
Chicago-based Builders Vision is announcing today that its Builders Initiative Fund has turned 90% of its assets into “mission-related” investments – investments to align with Builder’s broader goals of sustainability and equity. Most organizations have 20% or less of their assets in ESG or impact investments, so the 90% level sets a new standard for offices and home facilities.
Lukas Walton, grandson of Walmart founder Sam Walton, said: “If we want to make lasting change, we need our mission to manifest in everything we do – especially in the way We invest our resources. “That’s why we are investing our finances in companies, organizations and strategies that prioritize sustainable and equitable solutions.”
(PRO subscribers can watch an exclusive interview with Walton about this news and his overall investment strategy.) here.)
Walton, 36, is at the forefront of rapid generational change in family offices, as heirs and entrepreneurs in their 30s and 40s use their fortunes to promote social change. festival. For decades, family offices have divided philanthropy and investing – making money and giving it away. The new generation wants their investments to pursue solutions like their giving, combining “profit with purpose”.
“We believe that profit and purpose are not at odds with each other, quite the contrary,” said Matt Knott, President and CEO of Builders Vision and former chief executive officer at PepsiCo. “Businesses with a purpose will have a competitive advantage in the future. Brands and companies that people feel good about will have a competitive advantage.”
Billions for social change
Even as investing in ESG is met with backlash and criticism for “greenwashing,” the increase in investment impact among family offices is accelerating. A Credit Suisse survey of family offices found that nearly half of family offices surveyed plan to increase their sustainability investment over the next two to three years. As more family fortunes pass to younger generations and more tech wealth is created by young founders, family offices are pouring billions of dollars into startups, stocks and Private equity aims to change society.
“This next generation is unstoppable,” said James Gifford, head of Sustainability and Impact Consulting and Thought Leadership at Credit Suisse. “They’re bringing out the best in free markets and social innovation.”
“This new generation of family offices want to make an impact, they want to make a difference with the wealth they’re inheriting,” added Knott, president of Builders Vision.
Builders Vision, with assets of more than $4 billion, includes a direct investment arm, a wealth management unit, and philanthropy. It all boils down to three main issues: food, ocean health, and the energy transition. Builders Vision has assembled teams of in-house experts to fund the highest-impact ideas and share them around the worlds of philanthropy, startups, and investing. The Builders Initiative Fund is part of the Builder Vision philanthropic arm, featuring a variety of funds and capital groups, each with its own investment mission and goals.
Philanthropy cannot solve the world’s biggest problems, Walton says, even with government help. The major technological innovations needed in energy, agriculture and the environment will likely come from entrepreneurs. At the same time, many impact-related startups are too risky for traditional venture capital firms and angel investors. Walton and his team say that Builders Vision and other large family offices are uniquely positioned to fund companies and nonprofits across the spectrum.
NGO to IPO
Sanjeev Krishnan, Chief Investment Officer of S2G Ventures, venture capital fund Builders Vision said: “We want to provide a solution to raise capital from NGO to IPO.
For example, the ocean team at Builders Initiative used LLC’s to invest in a small startup called Matter, a UK-based company developing technology solutions for catching, harvesting, and harvesting. and microplastic recycling. As it grew, it became an attractive venture capital investment, prompting Builders’ VC arm, S2G, to recently make a seven-figure investment.
S2G, with around $2 billion in capital, has funded 80 companies and was an early investor in SweetGreen and Beyond Meat. Its portfolio includes everything from Farmer Focus, which partners with family farms to raise organic chickens, to Common Energy, which funds community solar projects.
While Krishnan declined to give specific returns, S2G ranks in the top quarter of VC firms, by Cambridge Associates standards.
With a 90% transition of funding to mission-related investments, even funding from the Builders Initiative Fund – the organization that funds philanthropy – is now focused on impact positively to society and the environment. Noelle Laing, chief investment officer of the Builders Initiative, said the realistic return target is still 5% of net fees, which is the standard for grants.
“We think you can achieve market margins while integrating ESG elements and integrating impact lenses into our strategies,” says Laing. “We think it’s just smarter investing.”
