Pi Investments is a single-family office supporting the transition from an extractive economy to one that is sustainable, generative and just.
We intend to align 100% of our assets towards our values, and to inspire the investment community to deepen its potential for transformative impact through the strategic placement of catalytic capital.
We seek to address several structural challenges that reinforce an extractive economy:
1. Shareholder primacy misaligns incentives.
The notion that a corporation’s sole purpose is to maximize returns for its shareholders treats working people and the planet as costs that have to be minimized, rather than recognized as assets and key long-term stakeholders.
2. Remote and limited ownership leads to wealth extraction.
Business relationships are anonymous and lead to a limited, short-term emphasis on financial returns that are unsustainable in the long run. Ownership—and by extension, financial prosperity—is limited to those who have access to resources. Financial return is typically based on wealth extraction from historically disadvantaged communities, or from the planet’s non-renewable resources.
3. Infinite growth models are incompatible with a finite planet.
An overemphasis on short-term financial return leads to a pursuit of perpetual growth that is incompatible with finite global resources. This leads to an overemphasis on engineering our way out of our current environmental crisis, and in the private markets, companies and assets have to be sold to maximize returns for investors, with little regard for mission preservation.
4. Short-sighted, top-down leadership stunts our creativity to address global challenges.
Impact investment is being defined by investors, fund managers and other intermediaries and entrepreneurs, with very limited engagement or direct accountability to those being served.
We make investments in vehicles that promote a generative, inclusive economy by:
- Making sure to add more value than is extracted from both people and the planet
- Focusing on fulfilling human needs rather than creating new ones through ethical production, and ideally reducing overall resource consumption
- Incorporating communities in design, governance and ownership of enterprises, and enabling their collective activity through advocacy and engagement
- Balancing risk and return to investors, entrepreneurs and communities
- Exploring investment structures that encourage companies to maintain and deepen their mission focus as they grow
- Seeking realistic and reliable returns that enable us to “recycle” our impact capital for multiple generations of entrepreneurs