Understanding the ‘why’ behind the investment

Align Impact, under Jennifer Kenning’s leadership, operates on three core beliefs: the possibility of market-rate returns in impact investing, the transformative potential of these investments for people and the planet, and the importance of rigorous financial and impact analysis.

CEO and co-founder Kenning says these values stem from an inherently personal place as well as the recognition that marrying your financial objectives with your values can change our world for the better.

“We believe that this is good investing and that these are game-changing solutions that will allow not only the planet but society to move forward over future decades, as well,” Kenning says.

At the heart of Align’s mission is the desire to be an enduring, independent voice in the financial advisory world. Kenning emphasizes the importance of working with clients and their existing advisors to leverage their expertise in the impact and environmental, social and governance space, with this collaborative approach allowing Align to complement, rather than replace, the work of other advisors.

The process of co-creating tailored investment strategies with clients starts with defining the key focus areas and understanding the “why” behind them. Whether it’s a passion for the planet, animal well-being, or human health, Align works closely with clients to educate and guide them in building impactful portfolios, integrating philanthropy and policy when appropriate. The firm’s strategy is not just about investments but is a holistic approach to tackling global issues.

“We work alongside our clients as our partner, educating them in what all the opportunities are around building out a portfolio from a public market perspective as well as a private market perspective,” Kenning says. “Then, where applicable, we would include philanthropy and policy into that strategy – because we believe you need to take a multipronged approach to the global issues that we’re all facing.”

However, there are challenges when it comes to balancing impact goals with investment rigor, which increases the importance of educating clients on Align’s expectations of managers. In cases where an investment opportunity doesn’t meet Align’s strict standards, they advise clients on risk management and potential allocations. For example, an early-stage venture opportunity might be more suited to a donor-advised fund or a private foundation in its initial stages.

“When that fund gets to fund two [stage], it moves into a different bucket within the family,” Kenning says.

Alongside this, Align’s formation of an external investment committee was a strategic decision to maintain intellectual honesty and forward momentum in the impact investing field. The committee comprises a diverse group of industry experts and thought leaders, intentionally rotated to bring fresh perspectives and challenge the firm’s strategies.

“Part of it is to chat, to keep us honest, and to own what we said we were going to do as well as to give us another set of eyes and ears to make sure we’re identifying and bringing the best investments forward,” Kenning says.