We are very pleased to announce the successful completion of a first close of For Purpose Investment Partners’ Social Impact Fund I (“SIF I” or “the Fund”), with $67m committed. The Fund will target social impact investments generating appropriate risk-weighted returns, and a roughly even mix between real asset-backed investments and investments in operating companies. The blended return target for the Fund is 9-10% post fees.
The first close was supported by over 100 investors and we are delighted that the Fund has a level of commitments that will enable us to take advantage of the healthy pipeline of investment opportunities we have. It is particularly gratifying for us to welcome funders to SIF I who have been investors from the early days of the impact investing journey. There is significant continuity from a range of investors who committed to the purchase of ABC Childcare Centres in June, 2010, resulting in the landmark acquisition by Goodstart Early Learning. Many of these investors also committed to Catalyst Education which For Purpose Investment Partners acquired early this year. We are also delighted to welcome nearly 80 new investors to the For Purpose family. We look forward to establishing the long-term trusted investment partner relationships with all these investors that will be key to achieving our goal of building a large-scale social impact investing market in Australia.
By funds committed, approximately 70% of investment has come from individuals and families, with the remaining 30% from institutions, predominantly charitable foundations. 30% of funds came from clients of advisors, with whom we had not had previous contact, with the remainder from existing investors and other contacts as well as 6% from the For Purpose team.
FPIP co-founder and Executive Director Michael Traill said; “It is critical for our goal of growing the large-scale Australian impact investing market to establish a fund and to have the funding access to move from a ‘deal by deal’ capital sourcing basis. We are delighted that we have attracted a range of new investors to the pioneering investment opportunity of SIF I which offers a portfolio of social impact investments in our target sectors, in a unique social purpose entity with a not-for-profit investment manager. There is a real sense that for many clients the initial investment commitment is a ‘toe in the water’, and this gives us great confidence in the capacity to build on the foundations of the first close and in line with meeting our first close target, to achieve a second close target that builds a fund size of around $150m.”
During the course of the first close investor presentations, we reinforced the evidence of the growing understanding of mainstream institutional funds of larger scale impact investing opportunities. We continue to be confident that the pioneering support of SIF I founding investors will create the proof point transactions that will attract institutional investment particularly from profit for member superannuation funds in the next iteration of this market.
We would finally like to thank our advisory partners Gilbert + Tobin and PwC, who worked on the documentation and structuring of the Fund.
Our very own Michael Traill sat down with Alberto Lidji for a discussion on social investing in Australia, as part of the Do One Better Podcast.
The episode explores a range of topics including:
(1) An overview of philanthropy in Australia today.
(2) Going beyond grant-making and ensuring endowments are invested for impact.
(3) Do investment professionals genuinely value impact investing?
(4) How does a non-profit, impact investment manager actually work?
(5) How do you go about deal flow origination, and what does a deal look like?
(6) How do you go to market with an impact investment proposition?
(7) How will the impact investing market evolve in the coming years?
(8) Do most impact investment opportunities arise from private equity houses, philanthropic foundations, high net worth individuals, or elsewhere?
Former National Australia Bank boss Andrew Thorburn has re-emerged, joining a new originator and investor in deals to manage human services.
The new group, For Purpose Investment Partners, will seek to bring superannuation funding and corporate management skills into the aged care, mental health, disability, social housing and education sectors..
In this episode of The Carnegie Project, Mark Carnegie puts capitalism under the microscope looking at where it came from, when it worked, how it worked and when it hasn't. He then turns his head to the future of capitalism through the lens of impact investing; looking at what contemporary society is attempting to do to bring it back on track after a period where it ran out of control.
Environmental, Social and Governance (ESG) considerations are increasingly important to be able to identify companies that are well prepared for the future. This is largely because companies that recognise the importance of adapting to changing socio-economic and environmental conditions are better able to identify strategic opportunities and meet competitive challenges.
M. H. Carnegie & Co. is proud to be the Co-Founder of For Purpose Investment Partners (FPIP), which is addressing a significant opportunity to respond to social infrastructure investment needs in partnership with the superannuation and social sectors. FPIP will originate, fund and facilitate large scale investment opportunities in Australia that provide compelling risk adjusted economic returns and meaningful social returns. This is CAPITALISM 2.0.
Join the conversation alongside Mark Carnegie, Andrew Thorburn and Michael Traill in part two of the podcast - the future of capitalism. Together they explore a pivot to thoughtful capitalism, how a profit motive and a purpose motive can go hand in hand; giving your investors a good return and society a good outcome.
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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