The New Age of Investing for Impact

[music] Salam. Welcome everybody and good morning. Welcome to my two panelists. So delighted to have you both here. Um so Rajan, you've had the most incredible career.

You worked at NASA. You have built now this huge digital entertainment and technology company with a vast Gen Z and youth audience in India and now building this globally and now you are also here and setting up a multifamily office in ADGM in Abu Dhabi especially with families from India and other emerging markets. So you every day are speaking to people all around the globe. So what patterns are you noticing in how this new generation frames impact and legacy?

Thank you. Always a pleasure to be here and I think what we're seeing here in Abu Dhabi is a coming together of the world both from a legacy standpoint and the next generational thinking. So I think when we went about working with Genz's uh in India you know one of the things we realized that the things that the starting point is you don't get us and you know our answer has to be yes we agree because that's where you build trust that's how you are able to kind of deeply engage in shaping the generation going forward as well and you know for for this generation when you talk of legacy uh they don't really think what they're going to do after it's here and now it's you their action and purpose is so aligned that they really want to create the impact today and rather than thinking what it will be later and you know even impact is now getting delivered through various different means I mean entrepreneurship with young people is just at a completely different high um and I think the entire aspect of bringing about technology and systemic change to create impact rather than measuring you know end outcomes is is a very exciting opportunity that we see and and we see this transitioning from you know legacy families to nextg as well as a thought process

and and from your perspective what does responsible stewardship mean for the next decade I mean especially when managing wealth across multiple generations but also across multiple geographies

you know stewardship is is trusty ship I think it's again you know how do you how do you really look at leadership differently today um and what are those those key things that that you take forward you know it's values you know and not valuables you know many times when we look at wealth and and we talk of what is that that is moving uh I think it's the values that you you take forward um it's also a time I think when you look at it from a geographic standpoint what matters locally is so important you know uh because the world today needs different things uh as priority and if we don't address that you know I think we are missing out on something which is a larger impact and good that you can have on the world. So I think looking at some of these levers as the the the differentiated way of doing things and you know Abu Dhabi becoming the base where all of this comes together is truly an exciting opportunity for us.

Extremely exciting and we're all delighted to be here this week. Now turning to you Dr. Adrien if you don't mind me saying you've had the most incredible history in creating legacy impact through your philanthropic endeavors. The K11 Art Foundation, which you created in 2010, has worked with some of the best known art organizations and institutes in the world, including many in London, where where I'm from, the ICA, the Royal Academy, and the Serpentine. Now, you are also chairman of the Hong Kong Academy for Wealth Legacy, a pioneering institute dedicated to driving excellence and strengthening Hong Kong as a leading global family office hub.

So could you share with us your thoughts on how clever inspirational wealth stewards such as yourself are creating a generational legacy and the impact that you want to make?

Um thank you. Um so in 2023 the Hong Kong government established the academy of wealth legacy with a purpose of amalgamating all the global family offices around the world in mobilizing their capital wealth for social goods and impact investment. Um and we want to really uh make Hong Kong to become a philanthropy hub uh of Asia. And for the past two years um my team and I are very proud that we're able to attract 49 families in and and also 26 strategic partnerships in creating an initiative called impact link. And impact link is a social impact uh initiative um that all the go all the family offices could participate in different types of philanthropic uh projects and social impact projects as well.

Um and we have strategic partner 26 strategic partners such as Bloomberg Foundations. We have Prince uh Prince of Albert II Monaco foundations, the Fond Fundion of France, Hong Kong Jockey Club and the Gays Foundation as our partners and they're sharing their projects and the families could actually participate and the past 20 years uh two years sorry we have been hosting 20 events with around uh six 1 1600 uh stewards participating. So it was it was quite a a success for the past two years.

That sounds incredible. You must been extremely um busy. Now that the Hong Kong Academy introduced six legacy de development goals, what are these goals and which of these areas do you see as most transformative for Asian business families today?

The first goal is intergenerational integration. The second one it's we have art and culture investments. We have also of course impact investments as well. Uh we have wealth management and most importantly is actually uh fan uh philanthropy and family governance especially family governance. So family governance is actually the most crucial.

The reason why is family governance training or family governance uh development binds the next generation together so that they have a shared vision and also a shared purpose. And without that you will have a lot of secession risk conflicts uh business downturns leadership gaps and also disengagement with the heirs. So that's why when we are looking at the six development goals the family governance is the most most most crucial.

Would you ask mind me asking Dr. Adrian, what what do a younger generation if if if you think they were to name one thing that they really care about, is it the future of the planet? Is you know what is it? What's what's what what are the sort of younger next generation? What's foremost foremost in in in the areas they are most concerned about?

Me, right? Well, if you look at the private capitals right now in Hong Kong, the Hong Kong market according to the sustainable finance uh uh survey, um it's first is nature-based solutions number one. Second is food and agriculture because food and agriculture accounts for 12% of the gas emissions around the world. Third is healthcare. Healthcare is the biggest biggest topic and also the uh social impact uh theme.

Fourth is built environment because built in built environment or constructions 40% of the greenhouse uh emissions are actually accounted for uh in built environment. So those are basically some of the sectors uh that they're interested in.

Thank you. And Rajan back to you. You work closely with global giving networks. Where do you see the biggest opportunities for crossber philanthropy and capital flow between India, the UAE and the wider diaspora?

You know it's interesting um historically we've seen you know some of the larger families and larger family offices setting up you know philanthropic you know initiatives that sustain generations. Today we are seeing even much smaller families you know making a cause uh something which is going to be intergenerational and it's interesting because as Adrian was saying there are some causes that are global today right whether it's climate change is so real you look at healthcare the wellness piece especially you know as you see young people looking at it and what we are particularly particularly invested in ourselves and that we are propagating extensively is is the entire growth of the creative economy because ultimately if every individual no matter where in on earth you are a young person can tap into that potential of creativity that they have and unlock that you know to generate their new livelihoods to become entrepreneurs to work collaboratively whatever it takes I think is is something that will unite and connect the world. So we believe that you know being able to unlock that part is probably the largest. But having said that I think you know education and health still continue to be the primary largest drivers of you know philanthropic spend around the world especially in emerging countries.

I'm delighted to hear you talk about creativity. I I come from a very creative background myself. You know we we're here and there's a lot of talk about artificial intelligence at this summit and and summits all over the world at the moment. How do you see there's there's been a big focus on on developing STEM skills and skills around developing artificial intelligence but tell me why creativity in an in a in an era of fast growing technology remains so important. I mean just for human development.

Exactly. Right. Because if you see that the what got automated were the tasks and now with you know generative AI even creativity is getting so you you you know so if you I I actually look at AI as your tireless creative partner you know you if you can use AI if every person can use AI to enhance their level of creativity world could be very different and you know we've seen one human imagination of one person you know sending you know satellites up in space uh you know putting a chip in the brain and controlling social networks, putting EVs. It's it's one one human imagination of creativity creating that. Imagine if 10 such creative minds of the world came together and led by a machine what it could mean.

So creativity is going to unlock at a crazy pace going forward. And I think it's important for people to be able to tap into that, use AI to enhance and strengthen that rather than let AI take that over. And I think that's the one human thing that you know will probably hold strong and we see that in countries like India the government's created you know creative technology hubs and things and replacing just pure technology with the words creative technology and I think that's making a big difference

yeah and and philanthropy will be incredibly important in helping build skills won't it across across the world I I you work at the intersection of business and philanthropy for founders and investors who want to build impact driven companies What does the right balance of profit and purpose look like?

You know, it's funny that you always say the business of business is business, right? And I think again this is a value that different families have. Until now, you know, people said if the purpose of business is only business, then whatever profits I make, I deploy it separately as philanthropy. We see this big shift of purpose-driven businesses, purpose-driven entrepreneurship actually now combining both wealth creation and serving communities, you know, as as one joint ambition and aspect. So when we see and what we believe are going to be the leaders of tomorrow because you know when you talk of business things keep changing on on who's disrupting what.

If you're continuing to to have a purpose to solve a problem that exists and do it truly with that spirit. I think that is the beauty of what can be served to the world. and countries like India and others where you know we have you know four India right you know below the poverty line a middle India $2,700 you know average uh per capita you know income is going to require so much of all of that right and I think emerging countries and developed countries can really work together to make the shift happen and again I come back to the reason we've set up here the Aspen next for global family offices that Abu Dhabi or a place like this can be a great glob global up to to you know make a lot of this change happen from this region. So we're truly excited to be here

very exciting times and Dr. Adrien, a similar question for you. For founders and investors who want to build impact driven companies, what does the right balance and profit, sorry, right balance of I think I think purpose and and profit um it really depends on the family and the person, right? So it has to be self finance and self um self uh sustainable in a sense. So you need profit to support the purpose and that that's number one.

Secondly is that you also need to find your purpose. Sometimes you can have a very ambitious purpose. You know you want to disrupt the entire society. You want to disrupt technology. You want to better a certain cause in the society.

It really depends on the degree that you want on the purpose side. So I give you an example. In 2010 there in Hong Kong there was um uh a company that does wheeled chair accessible taxis and there was 10 taxis only at that time. Now there's a hundred. Okay.

Profit It's profitable but it's not a lot. However, they influenced crossborder policy change in different regions around Asia. So the profit side was was less but the impact side was humongous around Asia. So their ambition was more on the purpose side but not on the profit side. So it so the balance is really depends on that person where uh the families wants to create uh less profit and contribute more towards the purpose or contribute less on the purpose.

It really depends.

I totally understand. So, a quick final question to you, Dr. Adrian. Which philanthropic project, however big or small, are you most proud of looking back over the last decade? Um so I have a charity called WEMP that focuses on children mental health and that's something that is very important for the next 10 years on mental health but most most importantly on children.

We have already served 160,000 participants families and also children in awareness and also advanced uh medical care especially in trauma cases as well. Um, aside from philanthropic, I would like to add on the transformative sectors that uh that I want to uh I want to to talk about too. Um, I think the next generations aside for philanthropic, there are some projects that people are look they're looking at especially in green transitions um and also climate change solutions through decarbonizing industries like the green steel productions and also a lot of renewable energy uh innovations too. These are a lot of uh young stewards that are also interested for the next 10 years not just philanthropic but on impact investment. Secondly is healthcare.

As I said healthcare is something that uh I want to close this with the idea of healthcare. Everyone's talking about healthcare for basic needs and also for advanced services as well. And then the third is um kind of inclusive finance through financial products uh and fintech in order to equitable economic participation in n uh and optimizing capital for nature-based solutions and also uh social enterprises. These are three things that aside from philanthrop philanthropy the next 10 next 10 years that can actually transform society.

Thank you.

Thank you. and Raj on to you in 10 years if you could look back to this day and this moment what would be the one collective impact you would like to have achieved

you know uh you use the word collective so you know I think as as as individual or as as as a company or as a group as a family as a person you know really unlocking the true power under every individual and that's really what we've made as a mission through our digital ecosystems businesses is to empower every individual in more ways than one. uh but collectively I co-chair the the large India at 100 uh initiative which is aligned with Prime Minister Modi's vision of Avix Bharat which is a developed India of 2047 and uh if you're saying a decade you know 2047 is 22 years away um I'd love to see that happen in a decade and that's going to require collaboration of you know use of tremendous amount of technology to build inclusivity you know to to create affordability to make sure that you know everything that India does the innovation sandbox is is a very strong one to to include everyone but more importantly I think government you know civil society industry all aligning and global partners you know to make that happen and and I think that is one thing that would you know really excite me if we could have achieved that in the decade

I said that was the final question we've got 12 seconds how hopeful do you feel about the next decade

how comfortable

hopeful I'm an optimist u And I I always I always believe that it's what you see from inside is what will happen outside rather than look at the situation and and you know react to it.

And to you Dr. Adrian, how hopeful do you feel about the next decade?

Very hopeful.

Good. Well, that's an optimistic note to end our talk today. Thank you so much for joining us. Thank you, Dr. Adrian.

Thank you, Raj. Thank you very much.