Earlier this month, I travelled to Chicago to be around SOCAP’s inaugural Chicago conference, an annual gathering of the impact investing community. Beyond feeling energized from convening in person with friends and peers, the timing felt strategic as I also kicked off my new Chief Operating Officer (COO) role with Humanize Wealth.
Many of the themes from conversations during SOCAP overlap with our work at Humanize Wealth. For individuals, I heard questions around enoughness and the purpose of wealth. For foundations, I heard questions around whether to grow endowments, how to allocate intentionally, and whether inflation plus expenses should continue as the standard target annual return regardless of mission. Across these discussions, it felt like the momentum for intentional planning and allocations to address systemic challenges continues to grow.
In every gathering, I heard powerful calls to channel capital at a faster pace in order to address widening economic disparities and environmental crises we’re facing. While we celebrate shifting client assets toward impactful private allocations, the discussions also surfaced the tension of operating as an intermediary. These calls to actions reinforced the necessity of prioritizing accountability to our clients, the fund managers we partner with, and, ultimately, the businesses and community leaders receiving investment.
Specifically, I’m left reflecting on the Employee Ownership Capital Roadmap breakfast hosted by the Ownership Capital Lab and Lafayette Square and their message to find a place for Employee Ownership in portfolios. The Overton Window continues to open for more inclusive ownership models and investments, and the momentum for employee ownership continues to develop with bipartisan support given its broad applications for inclusive economic participation.
During the panel with Priya Parrish (Impact Engine), Malini Moraghan (Torana Group), and Katie Kimble (Monarch), they highlighted how private equity and search funds are often able to outbid inclusive ownership deal economics, and choices for how to sell or transfer ownership ultimately come down to business owner values and motivation too. Although Employee Ownership opportunities may not be fully mainstream, it's definitely filtered into the impact investment ethos and rooms are getting bigger thanks to firms like Apis & Heritage paving the way with intention.
The session highlighted that as long as challenges persist, getting a fund from $10mm to $100mm that attracts institutional capital, public policy and philanthropic resources will continue to be essential to crowd in private capital. State capital pools earmarked by Treasurers can be particularly effective to address this goal and it was energizing to hear about state initiatives focused on employee ownership, including Vermont's Employee Ownership Task Force.
Shared ideation and innovation felt essential to continue building a growing movement for inclusive ownership structures. The conversation left me reflecting on how the movement is evolving locally, nationally, and internationally, and how ideas and examples are shared across boundaries. Before closing, the session highlighted the opportunities for Program Related Investments from foundations, and the importance of patient capital in order to grow and support fund managers focused on inclusive ownership for the long term.
Overall, being around SOCAP surfaced moments to recharge walking along the Chicago River, and also moments to discuss the state of impact investing in the face of public sector backlash against Community Development Financial Institutions (CDFIs), racial equity investments and DEI initiatives, and renewable energy, and the realities of the challenges that exist on multiple fronts in this moment. While the gathering left me appreciative of the potential for collaboration and the necessity of intermediaries, it also left me reflecting on themes around enoughness and values led investments that individuals and foundations can make to channel and circulate resources with intention to meet the moment and invest in an inclusive and sustainable future. As our work evolves at Humanize Wealth and I settle into my role as COO, I’m looking forward to enabling intentional planning and allocations alongside clients, funds, and businesses building together.
Thanks to the groups that hosted thoughtful events: Boston Impact Initiative, RSF Social Finance, Common Future, Worthmore, Just Futures Impact, Justice Funders, Roanhorse Consulting, Transform Finance.
Disclosure regarding Apis & Heritage
Humanize Wealth Partners, LLC has recommended, and clients of the firm are invested in, a fund managed by Apis & Heritage, and the firm may recommend this or similar investments in the future. This creates a conflict of interest, as the firm has an incentive to speak favorably about an investment its clients hold. The reference above reflects the firm’s opinion, is for informational purposes only, and is not an offer, solicitation, or recommendation to buy any security or fund interest. Investments of this type are private and illiquid and are generally available only to eligible investors (e.g., accredited investors or qualified purchasers); they are not suitable for all investors. Any investment decision should be made only after consultation with your advisor and review of the applicable offering documents.