Family offices are private firms that manage the wealth of high-net-worth and ultra-high-net-worth (UHNW) individuals, who typically have a net worth of $30 million or more, though family offices may serve families with lower thresholds depending on their needs. Traditionally, they have focused on providing a range of services to affluent individuals and families. This includes budgeting, charitable giving, insurance, wealth transfer, and tax services. [1] With the expanding awareness of geopolitical events such as climate change, social inequality, and environmental degradation, many entities are now incorporating impact investing into their portfolios.
Impact investing has led to a significant shift in the investment world. Increasingly, family offices are seeking to incorporate impact investing into their overall strategies. This approach aims to generate financial returns while creating a positive social or environmental impact.
Here, we will discuss the growing trend of impact investing among family offices.
WHAT IS IMPACT INVESTING?
Impact investing refers to investing in businesses, projects, or funds that generate a financial return and a measurable positive impact on society or the environment. Unlike traditional investing, which focuses solely on monetary gain, impact investing aims to balance profit with purpose, building positive influence alongside a financial return. This approach covers various sectors, including renewable energy, affordable housing, healthcare, education, and sustainable agriculture.
The impact investing market has seen significant growth. In 2022, the Global Impact Investing Network (GIIN) estimated the market size for impact investing to reach $1.164 trillion, predicting its continued growth based on the increasing investor awareness of global issues. [2] And they were right, because in 2024, the GIIN updated that figure to $1.571 trillion. [3]
THE ROLE OF FAMILY OFFICES IN IMPACT INVESTING
Uniquely positioned family offices drive the impact investing movement. These private wealth management entities cater to the financial needs of ultra-high-net-worth (UHNW) families, often managing assets worth billions of dollars. Unlike institutional investors or mutual funds, family offices have greater flexibility in their investment choices and are not subject to the exact scope or intense fiduciary responsibilities as external shareholders.
[tabs slidertype=”left tabs”] [tabcontainer] [tabtext]Investment Horizon[/tabtext] [tabtext]Alignment with Family Values[/tabtext] [tabtext]Appeal of Diversification[/tabtext] [/tabcontainer] [tabcontent] [tab]Although every investment can impact wider society, one of the key reasons family offices flock to impact investing is their long-term perspective. Family offices can afford to invest with a horizon that spans generations, unlike traditional asset managers, who may face pressure to deliver shorter-term results. [4] This long-term outlook aligns well with the nature of impact investments, which often require time to realize their full potential. For example, investments in sustainable infrastructure or affordable housing enterprises may require a longer timeline to generate returns. With their patient capital, family offices can support these ventures through their growth phases, contributing to their success and increasing the likelihood of achieving their desired social or environmental impact. [/tab] [tab]Another significant factor driving family offices toward impact investing is the alignment with family values and legacy. Many established family offices work to preserve the wealth, values, and vision of the founding generation. Impact investing provides an opportunity for families to ensure that their wealth supports causes that align with their values, whether it be environmental stewardship, social justice, or community development. [4] This alignment is particularly evident in the growing involvement of younger generations within family offices. Millennials and Gen Z, increasingly taking on leadership roles in family businesses and investments, tend to prioritize sustainability and social impact more than previous generations. [4] [/tab] [tab]Impact investing also offers family offices an attractive diversification strategy. While often lucrative, traditional investments are subject to market volatility and economic cycles. Impact investments, which may include private equity or real estate, offer an alternative to traditional public markets and can help hedge against conventional market risks. Impact investments often target emerging markets or innovative sectors underrepresented in traditional portfolios. Diversifying in real estate means spreading your investments across various assets. This can be across different types of properties, locations, and investment strategies, ensuring that your portfolio is not too dependent on a single market or asset type. Diversification helps mitigate risk while opening new avenues for growth. [/tab] [/tabcontent] [/tabs]
CHALLENGES IN IMPACT INVESTING FOR FAMILY OFFICES
While impact investing offers numerous benefits that have made it popular among family offices, it also presents several challenges.
One of the primary challenges lies in measuring impact. Social and environmental impact is not easily quantified. This lack of standardized metrics can make it difficult for family offices to assess the effectiveness of their investments. [5]
The diversity of impact goals—ranging from climate change mitigation to social equity—adds complexity, as different goals require different metrics and benchmarks, making it difficult to consistently compare and evaluate investments.
Additionally, finding suitable investment opportunities that align with the family’s financial goals and impact objectives can be difficult, especially in niche or emerging sectors where impact investments are often concentrated. [5]
AN INVESTMENT EXCLUSIVE TO ACCREDITED INVESTORS: MULTIFAMILY PRIVATE PLACEMENT
Impact investing represents a decisive shift in how family offices approach wealth management. As family offices continue to embrace this trend, they will play a crucial role in shaping a more sustainable future.
By aligning financial returns with social and environmental impact, family offices cannot only preserve and grow their clients’ wealth but also strive to contribute to society’s betterment. While challenges exist, these obstacles are being addressed through innovation, collaboration, and the growing sophistication of the impact investing ecosystem.
The rise of impact investing is more than just a trend; it reflects a broader shift in values and priorities, one that is moving toward a more responsible and purposeful approach to investing.
As accredited investors, HNW individuals have access to these unique investment opportunities that are traditionally unavailable to other investors. An accredited investor is defined by SEC Rule 501 of Regulation D as an individual with an annual income of at least $200,000 (or $300,000 for joint income) in each of the two most recent years and a reasonable expectation of reaching the same income level in the current year, or a net worth of at least $1 million (for both individual and joint net worth) at the time of purchase, excluding the value of their primary residence. There are other categories of accredited investors, including certain entities and individuals holding specific professional certifications.
Family offices understand how to capitalize on these unique investment opportunities to achieve their goal of growing and preserving the wealth of accredited, high-net-worth (HNW) individuals and wealthy families. One such investment is multifamily private placement.
Multifamily private placement, also known as syndication, is a real estate deal between several investors (limited partners or LPs) and a sponsor (general partner or GP) where they pool their money to purchase a property, usually an apartment building. [1]
The sponsor is responsible for locating the investment property, underwriting the deal, conducting due diligence, arranging financing, developing a business plan, and executing it. They then partner with investors seeking to participate in the syndication deal (LPs). [1]
Limited partners (LPs) receive a share of the cash flow, profits, or both, depending on how the syndication is structured. Their role in the deal is to provide a portion of the capital needed to acquire the property. Then, depending on the deal structure, they can receive monthly or quarterly income distributions from the asset. They may also earn a share of the equity upon resale. However, every deal is different. The profit split should be detailed in the private placement memorandum (PPM) before investors decide to join the syndication. [1]
Multifamily properties are generally more expensive than other real estate investments and require a high level of property management expertise to be profitable. This is where private placement (syndication) comes in. Family offices can participate in multifamily private placement deals without purchasing, owning, and operating a multifamily asset. [1]
BAM CAPITAL: AN AWARD-WINNING MULTIFAMILY REAL ESTATE TEAM
Investors should be aware that even multifamily private placement carries certain risks. For example, these deals are exposed to illiquidity as they can potentially last for years, which means investors must be comfortable with not having access to their funds for extended periods. This is another reason why most private equity real estate deals are exclusive to accredited investors and why it’s necessary to work with a trusted sponsor. If you want an owner/operator with a track record of excellence and producing results, work with BAM Capital.
BAM Capital partners with accredited investors who want to enjoy passive income and all the other benefits of multifamily private placement. The firm has been focusing on buying assets targeted as having strong profitability potential and staying disciplined in its investment thesis. BAM Capital’s investment strategy aims to create forced appreciation while helping to mitigate investor risk. To date, BAM Capital has successfully managed over $1.7 billion in assets across ~9,000 apartment units.
Remember that no investment is without risk. Before making financial decisions, consult your investment advisor and schedule a call with a BAM Capital investment team member.
For additional multifamily real estate insights, visit Pathways to Passive Wealth, BAM Capital’s new platform designed to make real estate investing more accessible, transparent, and achievable for aspiring and experienced investors.
SOURCES
[1]: BAM Capital. (2025). “What are family offices (HNW) investing in real estate?” https://bamcapital.com/what-are-family-offices-hnw-investing-into-in-real-estate-2025/
[2]: World Economic Forum. (2024). “Why data can ensure the whole world benefits from impact investing.” https://www.weforum.org/agenda/2024/01/data-impact-investing-davos24/
[3]: GIIN. (2024). “Sizing the Impact Investing Market 2024.” https://thegiin.org/publication/research/sizing-the-impact-investing-market-2024/#:~:text=The%20GIIN%20estimates%20that%20over,of%20the%20impact%20investing%20market.
[4]: PwC Global. (n.d.). “Impact Investing for Family Offices.” https://www.pwc.com/gx/en/services/family-business/family-office/impact-investing.html
[5]: LinkedIn. (2024). “Impact Investing: Navigating Challenges and Opportunities for Family Offices.” https://www.linkedin.com/pulse/impact-investing-navigating-challenges-opportunities-family-mueller-wdhge/
[6]: BAM Capital. (2025). “Current portfolio.” https://capital.thebamcompanies.com/
