Family office Farro Capital launches philanthropic arm amid growing demand
It also partners independent charity ImpactSG, with a S$600,000 commitment from five families
[SINGAPORE] Multi-family office Farro Capital has launched a philanthropy advisory arm, in response to demand from families in Singapore who wish to give back to society meaningfully but face challenges doing so.
These difficulties include inadequate governance structures for philanthropy and hurdles to understanding the Republic’s giving landscape, the firm said in an Aug 26 announcement.
Issues related to assessing the credibility of beneficiaries, measuring impact and outcomes, as well as setting up governance structures are also preventing these families from giving back in the ways they want to, Farro Capital added.
“The challenge of inadequate infrastructure and governance to effectively manage philanthropy is widespread across the region – including among local families,” said Manish Tibrewal, co-founder of Farro Capital, which manages more than US$2 billion in assets for families.
“Philanthropy often surfaces in our conversations with families,” he said in an e-mail interview. “By broadening the lens beyond financial capital, we help families align their resources with their values, purpose and legacy aspirations.”
“Giving ultimately needs to be personal and targeted.”
Edmund Twohill, executive director and co-founder of ImpactSG
The firm also entered a strategic partnership with independent charity ImpactSG, which kicked off with a S$600,000 commitment from five families and marked the first time the charity is collaborating with a multi-family office.
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Those who signed memorandums of understanding (MOUs) with ImpactSG include Arush Tandon, founder of investment services firm Safron Group, and Yorito Takekura of the Daisho Group.
“ImpactSG curates personalised engagements for the families that have signed the MOU with us, and assists them in their giving journey on an annual basis. They will also have access to our community and the events that we organise for our broader community,” Edmund Twohill, executive director and co-founder of ImpactSG, said in e-mailed comments.
The commitments will be allocated to areas that lack resources and which are aligned with the individual family’s interests, values and identity.
“This may include, but is not restricted to, ImpactSG’s charitable causes. We will also try to tap other matching schemes in Singapore to maximise the potential impact and stretch their philanthropic contributions. Giving ultimately needs to be personal and targeted,” Twohill added.
Ravi Menon, chair of ImpactSG and former managing director of the Monetary Authority of Singapore, was at the launch of the partnership on Aug 26.
In a keynote fireside chat, he said Singapore’s growing role as a global wealth hub presents an opportunity to meet the needs of vulnerable groups in the Republic and the region.
Farro Capital will also launch a blended finance platform that combines philanthropic and private sector participation to maximise impact.
The platform will be led by private capital investors such as Amit Gupta of research and advisory firm Ecosystm Group, Amit Mehta of Indian conglomerate LNB Group, and Lim Xin Hong of Vickers Venture Partners, alongside Farro Capital’s Tibrewal and Hemant Tucker.
The target fund size has not yet been finalised, and discussions are under way to identify projects that will be closely aligned with the needs of Singapore and the broader region, Tibrewal said.
“We intend to raise funds across the full spectrum of philanthropic, impact and market-competitive capital,” he added.
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