Stableford Capital Insights

Impact investing has been gaining traction as a way to diversify investment portfolios and increase the potential for long-term returns, all while helping to make a positive impact on the world around us. Alex Meek has joined Stableford as the private equity expert and will be introducing interested Stableford Capital clients to these ESG opportunities.

Alex Meek: A Man with a Sustainable Mission

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March 2019 Print Issue[/caption]Alex Meek joins Stableford Capital leadership at the helm of Stableford Private Equity and Venture Investment Portfolios. He is focused on selectively circulating new private investment opportunities that clients may have the opportunity to participate in alongside a syndicate of other Stableford clients.Although this is a new opportunity for Stableford clients, this is an area of expertise for Alex. Over the last decade, he has gained extensive experience in fintech, energy storage, consumer goods, media, and of course finance while working for investing, advising, and startup companies.His true hands-on experience comes from having previously co-founded an impact investing company in California called Newday. He and his co-founder’s innovative approach to investing caught the eye and praise of many financial thought leaders at Forbes, Investment Advisor (print)/Think Advisor (online), and Yahoo Finance.

ESG Investing to Make an Impact

Sustainable, responsible and impact investing (SRI) is an investment avenue that takes into account environmental, social and corporate governance (ESG) criteria with the long-term goal of generating competitive financial returns along with positive societal impact.The idea of responsible impact investing is to invest in companies that share the same values and goals as you do – renewable energy, cybersecurity, gender equality, and animal welfare, for example. And evidenced by the interest in Alex’s previous company, the idea is certainly catching on.Alex was a featured speaker on Yahoo Finance On the Move, where he discussed the increase in cost of buying ESG data.

“I think it’s very interesting you have a rising millennial generation that wants to refocus how they’re investing alongside their values. Now you have about 80% of all millennials want some sort of values alignment with how they’re putting their money to work. As you mentioned, about 25% of all globally manage assets are now focused on SRI or ESG. So it’s taken a little bit time institutionally to pick up, but more direct or consumer in our business, we’re seeing a demand for it, where people can get the direct access.” -Alex Meek on Yahoo Finance

Interest in ESG Expected to Soar

According to a 2018 report by the Forum for Sustainable and Responsible Investment, of professionally managed money in the U.S., more than $12 trillion, or one of every $400, was invested according to sustainable investing strategies.Another study by Opimas estimates that number will grow to $35 trillion globally by 2020 (this study was completed in September 2019).Aligning financial decisions with values resonates with many investors, but particularly for millennial investors who prioritize “the greater good” when choosing investment, and who stand to see the changes that their money supports.Additionally, mounting academic research shows a strong link between ESG and long-term financial performance.

ESG Investing Strategies

There are two basic strategies for ESG investing.

1. ESG Incorporation. This refers to “the consideration of environmental, community, other societal and corporate governance (ESG) criteria in investment analysis and portfolio construction across a range of asset classes.”

This strategy also includes community investing, in which investments finance projects or institutions that plan to serve underserved or poverty-stricken communities both in the U.S. and abroad.

2. Shareholder Resolutions. This is restricted to investors with shares in publicly traded companies and practices shareholder engagement to encourage responsible business practices or to ensure capital is spent on environmental or societal positive impact.Stableford Private Equity Offers a Sustainable Edge

Private Equity Impact Investing Opportunities

Alex and Stableford private equity now bring impact investing opportunities directly to Stableford clients. Investing in startups may seem risky, however, working with an expert like Alex who has worked and invested with several successful startups helps to ease that barrier to entry.

In his experience with Newday, Alex worked directly with many of the startups and organizations that consumers could invest in. For example, he took “hands-on” seriously when he worked with an organization conducting a beach cleanup in San Francisco, also part of a study in what the biggest trash contributors are.Ocean health was one of the original five thematic portfolios for Newday investors, created using quantitative research from several impact ratings firms, including Sustainalytics, MSCI and proprietary analytics narrowed in on specific data points.Back to the ocean health example, Alex told ThinkAdvisor that “its ocean health portfolio researches a company’s water runoff policy and plastics policy, as well as sustainable fishing practices.”This attention to quantitative data fits in seamlessly with Stableford’s established strategy philosophy and process. Alex will be researching and analyzing startup and private equity ventures that boast strong potential for positive impact on both society/the environment and the return on investment.

The Next Venture

Recently, Moxion Power was launched as a next-generation power option. Their products exceed the performance of diesel generators without the noise, toxic emissions, or costly fuel consumption. As a part of the management team, Alex hopes to continue his efforts to offer impact investing opportunities.

The Future of Stableford Private Equity

Moxion Power will be offered through Stableford Private Equity. As this arm of the firm is cultivated, future investment opportunities may be more passive in nature.Stableford private equity opportunities are available now. To learn more about adding this strategy to your investment portfolio, contact Stableford or call 480.493.2300.--------------------------------------------------------------------------------------------------------------Editors Note: *This was written with a focus based on the existing media content. There may need to be a Transistional sentence or two describing Moxion is if it doesn’t fit into the ESG category that was his primary focus previously. We could also bring up his older experience from his bio: Alex was a director at Silver Creek Capital Partners, a hedge fund backed by several family offices. Alex began his career in brokerage for high-net-worth families, institutions, and hedge funds at Deutsche Bank