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.
As the founding Chief Executive of Social Ventures Australia, our Executive Director Michael Traill worked together with Mission Australia, the Benevolent Society, and Brotherhood of St Laurence to raise $165m in capital for this pioneering large-scale impact investment transaction, acquiring the assets of ABC Learning Centres which had gone into receivership. This investment delivered a 12% annual financial return over 8 years, and created one of the largest social enterprises in Australia. Much of the work we do at For Purpose is based on replicating the success of the Goodstart model.
FPIP was formally established in late 2018 by Michael Traill with the support of long-time friend and philanthropist Mark Carnegie, who believed in the Goodstart principles and the opportunity for mainstream capital to migrate to impact-focused investing given the growing evidence of attractive financial returns. FPIP also received support from leading philanthropic foundations the Paul Ramsay Foundation and the Macquarie Group Foundation.
In July 2020, we partnered with Summer Housing on behalf of capital partner the Paul Ramsay Foundation and Conscious Investment Management to purchase 72 specialist disability accommodation apartments in 7 properties. For further information, please visit the Summer Housing case study.
In April 2021, we acquired vocational training provider Catalyst Education with a view to building a transformative leader focused on the key social sectors of early childhood education, aged care and disability care. In doing so, we replicated the Goodstart model by creating a not-for-profit entity with capital sourced from a range of socially conscious investors. For further information, please visit the Catalyst Education case study.
We held the first close of our very first committed fund, the Social Impact Fund I in December 2021, raising $73m from over 100 unique investors.
In September 2022, we committed $20m from our Social Impact Fund I to BlueCHP Housing, a disability accommodation partnership with NSW-based Tier 1 Community Housing Provider BlueCHP, in conjunction with the National Housing Finance and Investment Corporation (NHFIC). For further information, please visit the BlueCHP Housing case study.
In December 2022, with $7m in capital from our Social Impact Fund I we acquired Able Foods, Australia’s leading specialist NDIS meal delivery business. Able Foods provides Australians living with disability with access to high quality nutritionally-balanced meals, with exceptional service and delivery tailored to each customer’s specific needs. For further information, please visit the Able Foods case study.
In March 2023, our Social Impact Fund I acquired Victoria-based residential aged care provider Luson Aged Care and its three residential aged care facilities and development land. For further information, please visit the Luson Aged Care case study.
In July 2023, we funded the development of disability accommodation on under-utilised church land together with the Anglican Church Growth Corporation and the Sustainable Development Group. For further information, please visit the
Beacon Hill SDA development case study.
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.”
"I am invested in For Purpose Investment Partners because I believe you can do social good in a commercial way. There are many incredible socially good business opportunities that can thrive with the support of capital. For Purpose has a smart model to enable that capital to reach the right organisations and a brilliant commercially savvy team. If you get a chance to invest and make the world a better place at the same time, why not?"
“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”
For Purpose Investment Partners acknowledges and pays respect to the past, present and future Traditional Custodians and Elders of this nation and the continuation of cultural, spiritual and educational practices of Aboriginal and Torres Strait Islander people.
We believe that diversity, equity and inclusion at For Purpose Investment Partners are critical in our efforts to create significant social impact. Diversity in the team allows us to better represent the diversity of thought and experiences of the communities that we are aiming to serve, promotes a healthy and thriving working environment, and delivers innovative and sustainable outcomes for our communities, our people, our investors and our partners.
