TSAO Family Office | Investments | PE

Who We Are

TFO’s raison d’etre is ‘Investing to Make Things Better’. There is never a state of affairs that cannot be improved and we never stop trying to create a better social, environmental and financial outcome with our capital. Every action we take has complex and numerous consequences for the world around us. Consumption, investment, trade and social interactions have diverse positive and negative impacts on the environment and society.

TFO may invest with a specific impact objective in mind. In these cases, we will consider the primary and collateral impact of our investments. This resembles most closely what the industry terms ‘Impact Investing’. This impact can be deep or broad. There are certain impact themes that are of particular interest to the TFO that include, but are not limited to: climate/environment, health and education. For each impact investment we seek to understand the intended outcomes of the impact before we invest as well as the unintended consequences. These outcomes will differ depending on the individual opportunity.

TFO may also invest with a financial objective in mind and no specific impact agenda. In these cases, we will consider the collateral impact of our investments. This most closely resembles what the industry terms ‘ESG investing’. The capital that is dedicated to financial objectives does not absolve us from applying ESG analysis and standards to our efforts, however, our approach to ESG will likely differ significantly from industry norms.

The TFO’s financial objectives are to earn a sufficient return to fund the various philanthropic activities of the family (via the Tsao Foundation and Tsao Family Foundation.) This refers to the returns generated by the entirety of the Tsao Assets Trust’s financial assets.

Investment Philosophy

Investing to Make Things Better

TFO aims to fulfill the family's impact goals via investing in:
1) impactful strategies that contribute to better social and environmental outcomes,
2) financial compelling investments that impact neutral but help support the family's philanthropic ambitions.

Diversification

TFO’s portfolio is well-diversified across asset classes, strategies, and region. TFO allocates risk and not notional dollars when it invests. Hence, we will allocate more to less risky investments and less to more risky investments, all things being equal.

Consistency and Compounding

Compounding is a powerful phenomenon. In order to compound returns, consistency is important. While losses are a part of life, severe losses can be debilitating. Hence, TFO aims to generate a steady and consistent return across the cycle, targeting 3-5% over risk-free rate.