Family offices are in a unique position and have more freedom to invest for positive impact than any other institutional asset holder. How can we channel more of this $10 trillion wealth into investments that can generate a double return? How can we take new learnings and adapt them to work with legacy businesses that have been in operation for decades (if not for centuries)? 

PT1, a European venture capital fund with offices in London and Berlin (and a Europe-wide presence), and Halton Ventures, the parent company of Halton Group, as well as an active owner and investor focused on the green transition and the built environment, hosted a session to find out. 

Titled ‘Sustainable Alpha for Family Offices: Defining Impact and Finding VC Success in Europe’, the event gathered accomplished family business representatives and partners from Finland. In attendance were some of the individuals at the forefront of making impactful investments in the country, with experience in allocating patient capital to causes that preserve family legacies, benefit society, and the planet. 

In the spirit of making information more accessible and supporting the creation of impactful investments, here are key insights from the discussion.

Where to start, if you are just starting?

“Sustainability is a journey. The important thing is not to have all the answers when you start, but to get started and learn along the way,” said Krista Halttunen, CEO, Halton Ventures.

The group agreed in uniform. When developing an impact investment strategy, it’s never too early to begin. Start small, stay focused, and set clear goals. Investors can be drivers of change, not only supporters (the aspiration for investors to be impact-generating, rather than impact-aligned) was another fantastic insight taken from Krista’s presentation. 

Chasing investment headwinds

The investment and the impact universe are wide and large. How to navigate it?

“In our uncertain world, the only megatrend we know for certain will continue is climate change. So if you just bet on one, make it that one,” continues Halttunen.

Given Finland’s geopolitical position, the discussion naturally explored investments in strategic resilience and dual-use technology – and how that relates to and connects with impact. 

“Looking at the recent mega-headline 'European resilience', Finland is quite literally at the forefront of a revitalised, pan-European movement to ensure a safer and more stable environment in multiple dimensions. Energy, the built world, and infrastructure – sectors once considered boring – are more critical than ever,” said Nikolas Samios, Founding Partner, PT1.

“Like PT1, we believe that the most impactful breakthroughs of our lifetime will come from low-emission technologies in the real estate and energy sectors,” said Juha Kekkonen, CEO, Helkama Kiinteistöt.

The ‘where’ of (impact) investing

Investing in areas where the family business has domain expertise can offer strategic value to founders. This is the approach Halton Ventures has taken when investing directly. It resonated deeply with participants. 

“When investing indirectly, it is important to choose partners who share your core values and bring extra value and knowledge to the table,” said Halttunen 

And when not investing directly?

Partner with experts

For family offices with limited internal capacity – or for whom venture capital is not a core business activity – working with expert fund managers offers a practical way to enter the space with confidence. It enables access to quality deal flow, strategic insights, and portfolio performance without having to build a VC infrastructure from scratch.

“We want to be part of the breakthroughs coming from low-emission technologies in the real estate and energy sectors – and do that as flexibly as possible. This is why we invest directly, and through funds like PT1,” said Kekkonen

This approach also helps to mitigate risk while maintaining the desired level of impact. 

(Disclaimer: some roundtable participants are investors in PT1 Funds.)

Learn with and from peers

Equally important is the power of peer exchange. The family office/business community in Finland is open and collaborative, a sentiment that was echoed at the roundtable. 

“Systematic and rapid change requires coordinated cooperation between multiple actors. Knowledge-sharing is a practical way to lower the threshold for investors to start taking meaningful action," said Georgi Agiashvili, Investment Analyst, Security Trading 

Family offices further along in their impact journeys are generously sharing tools and practices with others. Security Trading, one of the larger family offices in Finland, openly shares its impact investment framework with other actors in the investor community. You may find it here: https://www.securitytrading.fi/tools

There was a broad agreement in the group that the conversation hosted was useful and valuable, and that those exchanges should continue. We hope so as well, and would welcome hearing from you if you wish to be part of a future session.