A not-for-profit social impact investment fund manager, created to pursue an important mission; bringing private sector capital and capabilities into sizeable businesses and projects to create significant social impact
In the face of increasing demand for social enterprise and infrastructure solutions to support Australian communities, For Purpose Investment Partners was established to invest in projects and organisations that deliver strong and long-term positive social outcomes while delivering investors appropriate dated risk-adjusted financial returns over the long run.
At FPIP, we have decided to focus on social impact. A significant amount of impact capital sits in either environmental impact strategies or generalist strategies, but our belief is that by specialising in this area of significant need we can deliver maximum impact. Within the social sector, we have selected 5 sub-sectors that share the common characteristics of significant gaps in service provision or infrastructure that to close require spending in excess of what government alone can deliver.
High quality training to equip the workforce of the future
Government spending on VET in FY18 (down from ~$9bn in FY15).
Australians are long term unemployed (>1 year).
Annual unemployment benefits for 1.5m Australians (estimated jobs lost by 2030 due to automation).
A standard of care that adequately respects the rights of elders
Government spend on aged care across FY20
Of applicants rejected in the FY19 Aged Care Approval round
Estimated annual cost to implement the key recommendations from the royal commission
Timely, ongoing adequate levels of support for all who need it
Spent by the State and Federal governments on mental health in FY19
Of mental health patients are not receiving timely support upon discharge from hospital
Top end of annual cost to society range from mental ill health (per PC final report)
Breaking down the barriers to a quality life for individuals living with disability and their families
Support payments made under the NDIS in 2020
Of people with disability in Australia live near or below the poverty line
Required to address the shortfall in fit for purpose disability accommodation
Access to safe, secure housing for all people regardless of life circumstances
Federal government spend on housing and homelessness in FY21
Households on waitlists for public housing
Estimated cost to address the ~150k national shortfall in social housing
All of our five target social sub-sectors are categorised by significant gaps in service provision that exist despite large existing government commitments, and with significant amounts of capital required to close these gaps, require large scale mobilisation of private capital. Hover over any of the five sector cards to get a sense for the scale of these gaps.
While there are nuances across each of our focus sub-sectors and no two investments we make will be identical, we do believe strongly in the virtuous circle of doing good and doing well, which we call the “For Purpose Flywheel”.
Informed by our previous experiences, we are confident that investing in good service delivery in the social sector isn’t just good for society - it’s good business.
Our impact approach can be thought of in two distinct segments; prior to, and post investment.
As we assess potential investments, without the access to detailed impact data we ask ourselves four key questions (shown to the right).
After we have made an investment, we work through our seven step process, developed alongside leading impact measurement experts at Social Ventures Australia that starts with the theory of change and ends with the core ingredients of an impact reporting framework including the implementation of any new data collection processes and a digestible, easily communicable reporting approach.
Do we have a clear, robust theory of social change related to the investment or investee company that we will be able to objectively test along the journey post-investment?
Will our capital be delivering impact additionality, or incremental impact beyond the status quo?
Is there the potential for deep social impact, either initially or over time through scaling?
Does the investment have characteristics that will act as mitigants to ensure minimal risk of a negative impact outcome?
Not only do we partner with not-for-profits, but we ourselves are a not-for-profit and registered charity, ensuring complete alignment with our operating partners and investors. Our management fees are sized to cover our costs, and thats it.
Our connections, credentials and not-for-profit status together make us a capital partner of choice for many socially-minded organisations, providing us with proprietary access to social impact investment opportunities.
Highly credentialed team with experience gained in some of the most notable corporate organisations, and with a track record of transformational impact investing as a team and across prior careers.
Proprietary transaction structures developed that build on the original Goodstart structure and allow us to achieve our investment objectives while supporting and investing with not-for-profit partners.
Deeply engaged board of directors and Strategic Advisory Committee who together bring cross sectoral expertise and networks that together complement those of the investment team.
"I have long believed the capacity exists in the Australian market for mainstream investment in transactions which have a long term focus on achieving appropriate investment returns by applying business disciplines for social purpose. As a former and founding Chief Executive of Sunsuper and with personal experience in leadership positions in the for purpose world, I see a real need for a different approach to investing that combines the best of both the business and for purpose worlds."
I’m backing For Purpose Investment Partners and giving it the full support of our practice because Michael Traill has proved that there are the large scale deals that generate decent financial returns and produce real social purpose. The Goodstart Early Learning deal he created is a standout. It’s Capitalism 2.0. I’m personally committed because I want to be part of something that will drive a different and sustained ethical way of repeating those opportunities."
I am delighted to be involved with For Purpose Investment Partners. As someone who has worked in Chair and leadership roles across the sectors for more than four decades, there is a real need for the kind of explicit focus the For Purpose team will bring to originating large scale transactions that combine business disciplines and social purpose. As a founding director and vice Chair of Goodstart Early Learning I have seen how powerful this model can be in driving financial and social purpose returns. Australia needs the investment savvy and heart to bring many more of these transactions to life.”
"Capital access is a core challenge for a large scale social purpose organisation like Hammond Care. The ethical and aligned focus of For Purpose Investment Partners, which respects the need to use business disciplines for social purpose that sit at the heart of our work, has the capacity to fill a great need in the sector. Critically, Michael Traill and his team have the street cred to make transactions happen, as they proved with Goodstart Early Learning and Catalyst."
“At this time, there is real opportunity to catalyse mainstream funding for the kind of impact investing deals that generate acceptable financial returns and deliver clear social purpose. For Purpose Investment Partners has the practical deal experience of both business and social purpose worlds to originate and fund the transactions needed. Most importantly, they are strongly ethically aligned to the great businesses they are seeking to serve”
Our Social Impact Fund I will open to new investors shortly, following a successful first close of $67m in December 2021.
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