WOA: Philosophy to Approach, Case Study of Impact Investing
Transforming Communities Through Impact Investing
On August 28, 2024, World of Allocators (WOA-SG) hosted the “From Philosophy to Approach: Case Study of Impact Investing” event in Singapore. The session featured professional investors, including Wai Chiew Chik, CEO of Heritas Capital; Alex Tee, Managing Director at Beneficial Returns; and was moderated by Jillian Correia, Director of Investments at GEM. The speakers shared their unique journeys, investment philosophies, and the innovative ways their work is transforming communities.
Wai Chiew Chik’s Story: Intentional Impact
Wai Chiew Chik, a veteran investor with a background at Temasek, now leads Heritas Capital—a private equity and venture capital firm focused on impact investing. Heritas provides much-needed growth capital to social enterprises often overlooked by traditional PE/VC firms due to their perceived limited growth and exit opportunities.
Wai Chiew introduced Heritas’ unique framework for assessing investments based on Intentionality (what the business does to achieve societal impact), Materiality (the tangible differences it makes), and Collinearity (scalability and impact potential). He shared the heartwarming story of Gentle Foods, a company addressing the needs of people with swallowing difficulties by creating familiar-shaped, safe, and nutritious puréed foods that look, taste, and smell appealing. This innovation not only nourishes but also restores the joy of eating for patients.
Alex Tee’s Vision: Authority and Vulnerability
Alex Tee, once a high-flying trader and CEO of BofA Singapore, underwent a profound shift in his career when he began contemplating what it means for humans to truly “flourish.” Alex introduced the concept of balancing Authority (the power to make changes) with Vulnerability (the ability to empathize and take risks). He observed that many wealthy individuals possess authority without vulnerability, while social entrepreneurs often have vulnerability but lack authority.
This realization led Alex to join Beneficial Returns, where he now champions impact investing through a debt fund that supports outstanding social enterprises. His investment philosophy centers on the idea that focusing deeply on solving a problem naturally leads to broader success, stating, “When you take care of depth, breadth takes care of itself.” He believes that entrepreneurs who immerse themselves in the lives of their customers are best positioned to achieve impactful outcomes.
Jillian Correia: Measuring Impact Holistically
Jillian Correia, Director at GEM Investments, shared her approach to measuring impact using the Impact Management Project (IMP) framework, which evaluates investments from multiple stakeholder perspectives: Customers, Supply Chain, Community, Planet, and Employees. The framework ranks actions based on whether they do harm, avoid harm, benefit stakeholders, or contribute to solutions.
Challenges and Reflections on Impact Investing
The panel also discussed the challenges of staying committed to impact investing. Alex emphasized the importance of creating “possibility structures” that demonstrate success and help shift perceptions over time. Wai Chiew noted the liberating clarity that comes from recognizing the limits of one’s power in influencing investment outcomes and the importance of embracing this mindset.
Both speakers observed a positive shift in consciousness among younger generations, who are increasingly eager to engage with social issues and contribute to solutions early in their careers, contrasting with the older generation’s more sequential approach to life and philanthropy.
Conclusion: A Call to Meaningful Action
Nicole Su, the event organizer, concluded with a powerful reminder: “You don’t have to be an impact fund to do impact investing.” She urged attendees to reflect on how they can integrate purpose into their own lives.
The evening ended with lively networking, as participants continued discussions and built valuable connections. This event underscored World of Allocators’ commitment to fostering knowledge and advancing the practice of sustainable investing. Stay tuned for more inspiring events that encourage learning and sharing within the community!