In an era defined by global challenges and shifting values, investors seek more than financial gain—they aim to create enduring impact that spans generations.
Legacy investing builds on the principles of positive, measurable social and environmental impact while delivering financial returns. Unlike ESG strategies, which primarily manage risks, impact investing pursues measurable outcomes such as reduced carbon emissions, improved health access, and increased income equality.
We frame “legacy investing” as deploying capital to achieve enduring, multi-generational positive change. It integrates values, resilience, and purpose across all portfolios—retirement accounts, donor-advised funds, family offices, and pension schemes.
Key drivers include:
The global impact investing market is far from fringe. In 2025, it reached USD 629 billion in assets and is projected to exceed USD 1.27 trillion by 2029, growing at a 19.4% CAGR. According to GIIN’s 2025 report, impact AUM surged from USD 129 billion in 2019 to USD 448 billion in 2025 among repeat respondents.
Investors deployed nearly USD 49.8 billion in 2024 and anticipate USD 58.6 billion in 2025. Overall, the field has mobilized over USD 1.5 trillion into solutions since its inception, demonstrating strong momentum and credibility.
Institutional allocations reveal a shift towards tangible and climate-aligned bets:
Sector focus is concentrated in energy (20% of AUM), agriculture and forestry (55% of investors), financial services (21% of AUM), and healthcare (51% of investors). This highlights where legacy capital is flowing to tackle systemic challenges.
Individuals, families, and institutions have a range of vehicles to align capital with values. Key approaches include:
Blended finance itself has channeled over USD 1.9 billion in catalytic capital across 4,083 transactions, often using senior debt to attract mainstream investors. Nearly 61% of blends align with Sustainable Development Goals, providing a blueprint for catalytic legacy strategies.
Families and next-generation investors are creating bespoke frameworks grounded in explicit theories of change. These frameworks define goals, metrics, and timelines, ensuring that capital deployment is both strategic and mission-driven. Pension funds and endowments increasingly adopt similar protocols, embedding legacy objectives into governance and asset allocation decisions.
Despite strong growth, legacy investing faces critical challenges. Impact washing—the misrepresentation of actual outcomes—threatens trust. Consistent, high-quality data remains scarce, complicating performance comparisons and making standardization urgent.
Next-generation wealth transfers will be pivotal. As Millennials inherit family offices and endowments, they demand greater transparency and social purpose. Regulatory changes—such as mandatory impact disclosures and tax incentives for sustainable investments—are expected to accelerate professionalization and guard against greenwashing.
Macro factors also shape the outlook. Economic stabilization in emerging markets, coupled with intensifying climate risks, will drive renewed capital flows into sustainable industries. Trade tensions and market volatility underscore the value of diversified, resilient portfolios that prioritize long-term value creation over short-term gains.
Looking ahead, investors can strengthen legacy outcomes by:
Ultimately, legacy investing is more than a strategy—it’s a commitment to future generations. By combining rigorous frameworks, robust data, and collaborative approaches, investors can cultivate enduring positive change. As capital markets evolve, those who prioritize legacy will shape a world where prosperity is measured by both financial returns and the lasting benefits delivered to people and planet.
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