Ep 20: Hospicing the Old, Midwifing the New: Building the Financial Future with Angela Barbash, CSRIC, CoFounder & CEO at ReValue Investments
Revalue is a values-driven investment firm founded in 2013 by Angela Barbash, an experienced investment advisor with over 20 years of service. The firm's mission is to assist individuals in aligning their finances with their values by divesting from the extractive economy and investing in the regenerative economy.
Revalue focuses on providing investment options in the public markets that support impact-oriented communities and organizations. They work closely with clients to identify their desired impacts and narrow down their investment preferences, including the type of organizations, investment structures, and specific impact areas such as community development, renewable energy, or local businesses.
Taking a partnership approach, Revalue offers proactive due diligence on investment opportunities. They maintain a data room where clients can access information on funds, community investment funds, and other vetted investments. Additionally, Revalue encourages clients to scout for direct investments in their communities, such as local businesses or projects. The firm provides guidance and support in evaluating these opportunities to ensure they align with the client's investment policy statement and risk tolerance.
Revalue's approach to values-driven investing goes beyond traditional financial metrics. They prioritize qualitative factors and impact metrics, allowing clients to invest in line with their values and contribute to the transition from the extractive economy to the regenerative economy.
With a team of eight employee-owners, Revalue has experienced significant growth and serves a diverse client community, including accredited high net worth investors, institutional investors, and non-accredited wealth builders. Over the past decade, they have educated thousands of individuals, and currently have nearly 200 clients in their community.
Revalue's success in aligning finances with values has inspired other advisors in the industry. To support this growing interest, Revalue recommends starting with a small group of highly motivated clients to beta test their approach and gain valuable experience. They also emphasize the importance of joining peer-to-peer learning communities within the industry to share due diligence efforts and learn from one another.
In conclusion, Revalue is a pioneering values-driven investment firm that assists clients in aligning their finances with their values. Through a partnership approach, they help clients divest from the extractive economy and invest in the regenerative economy. By prioritizing impact metrics and qualitative factors, Revalue enables clients to make investments that reflect their values and contribute to positive change in their communities.
Revalue assists clients in divesting from public markets and investing in impact-oriented opportunities in the private community markets. They believe in aligning clients' finances with their values and helping them make a positive impact through their investments.
When clients express interest in divestment and reinvestment into regenerative finance and the local economy, Revalue starts by assessing their risk tolerance and building an investment policy statement (IPS). The IPS helps identify the appropriate percentage of the portfolio that can be allocated to impact investments, ensuring clients are comfortable with the level of risk involved.
Revalue offers two tracks for clients to explore. Some clients already have knowledge about divestment and impact investing and come to Revalue specifically for their expertise in these areas. Others may have personal finance questions and needs and are looking for a values-aligned advisor. For the latter group, the concept of divestment may be new, and Revalue educates them on the possibilities and benefits.
The next step is to narrow down the scope of the impact investments based on the clients' preferences. Revalue helps clients target the specific impacts they want to have, such as investing in solar energy or supporting local food systems. This process helps clients navigate the vast array of offerings in the private markets and makes it more manageable.
Revalue has a partnership approach with their clients. They proactively look for investment opportunities like community investment funds and CDFI notes, which they include in their data rooms for clients to review. On the other hand, clients are encouraged to be scouts for direct investments, such as local businesses or projects in their communities. Revalue provides guidance and due diligence support to ensure that these investments align with the clients' IPS parameters.
Revalue's approach to impact investing in the private community markets differs from the traditional focus on quarterly earnings and benchmarking against the S&P 500. They take a more qualitative approach, considering the broader impacts and outcomes of the investments. This approach allows clients to make investments that align with their values and contribute to the transition from an extractive economy to a regenerative one.
For advisors interested in incorporating impact-oriented opportunities in the private community markets, Revalue suggests starting with a beta group of highly motivated clients. This group can help test the process and provide valuable feedback. Revalue also recommends joining peer-to-peer learning communities like Rad Planners or attending conferences like ESG for Impact to connect with other advisors and share due diligence efforts.
Overall, Revalue's mission is to assist clients in divesting from public markets and investing in impact-oriented opportunities in the private community markets. They believe in the power of aligning finances with values and are dedicated to helping clients make a positive impact through their investments.
Revalue, as highlighted in the podcast episode, places great emphasis on assessing clients' risk tolerance and developing an investment policy statement (IPS) to guide their impact investments. This approach ensures that clients' values and financial goals are aligned and that their investments are tailored to their specific needs.
When clients express interest in divesting and investing in impact-oriented communities, Revalue begins by assessing their risk tolerance. This assessment goes beyond just their financial ability to take risks and also considers their emotional risk tolerance. By understanding clients' risk tolerance, Revalue can determine the appropriate allocation of their portfolio towards impact investments.
The next step in the process is the development of an investment policy statement. This statement outlines the percentage of the overall portfolio that is suitable for impact investments and sets the direction for the client's investment strategy. In some cases, the IPS may also serve as a destination point, outlining the desired composition of the portfolio in the future.
Revalue recognizes that impact investments in the private markets can be overwhelming due to the diverse range of offerings and the lack of organization in this space. To address this, Revalue takes a partnership approach with its clients. They proactively search for investment opportunities such as community investment funds and CDFI notes, which they then make available to their clients. On the other hand, clients are encouraged to act as scouts for direct investments, such as local businesses or projects in their communities. Revalue provides guidance and due diligence support to clients as they explore these opportunities.
Throughout the process, Revalue acknowledges that knowledge and savviness about investing are not determined by wealth or income. They approach each client with an open mind, recognizing that clients may come from diverse backgrounds and levels of financial literacy. Education and a learning journey are key components of Revalue's approach, ensuring that clients have a solid understanding of impact investing and are empowered to make informed decisions.
Overall, Revalue's emphasis on assessing risk tolerance and developing an investment policy statement reflects their commitment to aligning clients' values with their financial goals. By tailoring impact investments to each client's unique needs and providing ongoing support and education, Revalue aims to empower clients to make meaningful and impactful investment choices.
