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.
Michael Traill, Executive Director and co-founder of For Purpose Investment Partners is interviewed on the latest With Purpose podcast by David Knowles. The episode overview is 'Michael Traill AM made his name at Macquarie Bank as a successful private equity investor, before jumping ship to foster social entrepreneurship in Australia as founder of Social Ventures Australia. This journey led him to the field of impact investing, a field in which he is now acknowledged as a pioneering leader and elder statesman. Today, Michael is Executive Director of For Purpose Investment Partners and Chair of the Paul Ramsay Foundation. In this episode, Michael reflects on what he has learnt during his career, and shares unique insights in relation to investing, leading, governing and tackling a wide variety of social issues.’
NAB, CBA and Bank Australia provide $260m joint debt facility
Deal highlights
· $260m facility will support the acquisition of Signature Care
· Signature Care has eight operational residential aged care facilities, and a growth pipeline of six development sites
· The transaction includes $35m of social loan notes provided by Qantas Super and Australian Ethical Investment.
7 August 2024 - NAB, CBA and Bank Australia are backing For Purpose Investment Partners (For Purpose), Australia’s pioneering impact investment manager, with over $260m of debt facilities. The facility will support the For Purpose Aged Care Australia (FPACA) platform for the acquisition of Signature Care.
FPACA is a not-for-profit aged care platform focused on achieving excellent health and wellbeing outcomes for residents and attracting and retaining quality staff. The platform brings together Luson Aged Care and Signature Care and will have over 2500 beds creating a top 15 Australian aged care provider. The support of NAB, CBA and Bank Australia follows the landmark commitment of institutional investors Qantas Super and Australian Ethical Investment, announced in April 2024.
Announcing the commitment Michael Traill, Executive Director of For Purpose said “We are delighted to partner with NAB, CBA and Bank Australia to support the expansion of our aged care platform. This further expands our existing relationships with NAB and CBA and we are excited about our first partnership with Bank Australia. With this debt facility the banks are demonstrating their leadership in financing social impact in Australia while supporting better outcomes for thousands of Australians in aged care.
“The inclusion of $35m in social loan notes is a further endorsement of the strength of the FPACA platform to deliver institutional grade long term financial returns and social impact.”
Toby Hall, Chair of FPACA said “We have an ambition of transforming the aged care sector to have a broader social impact that starts with person-centred care and a valued workforce. The support of the banks, preceded by that of institutional investment, demonstrates the value of aged care and the role it plays for Australians and their families.”
John McCarthy, Head of Corporate Health, NAB said “NAB is delighted to be partnering with FPACA as they continue to support the aged care sector and bring critical social infrastructure to regional locations. As a banker to the seniors living sector for over 10 years, I know how important the investment in quality aged care is to communities. I’m proud that the NAB Corporate Health team has played a role in enabling such an investment and look forward to seeing it come to life.”
General Manager, Major Client Group CBA Craig McQuillen said “We are proud to support For Purpose in their ambition to transform the aged care sector and create positive social impact. The deal features a unique social loan note structure which aligns investors to long-term returns and is the largest transaction of this nature in our Business Bank to date.”
Bank Australia Head of Impact Lending Tim Von Ess said ‘‘Through Bank Australia’s impact lending we aim to meet our customers’ expectations that their money is used to generate positive social and environmental impact. We’re pleased to be involved in FPACA’s acquisition of Signature Care and helping to increase in the supply of high-quality aged care accommodation and care for older Australians.’’
The commitment supports the previously announced strategic acquisition of Signature Care by FPACA. With eight operating aged care facilities, the potential growth pipeline includes six development sites across Australia with a focus on regional centres.
ENDS
2 May 2024 - Leading Australian social impact investment fund manager For Purpose Investment Partners (FPIP) has acquired national meal delivery business Tender Loving Cuisine (TLC) through FP Ability Pty Ltd (FP Ability), its Disability Services platform. Primarily serving aged care customers accessing funding through Home Care Packages and the Commonwealth Home Support Programme, TLC complements FP Ability’s existing portfolio company, Able Foods. The strategic acquisition bolsters FP Ability’s presence in a growth market with quality products that support customer health and wellbeing.
FPIP Managing Director Victoria Adams said “We are excited to announce the acquisition of TLC. This represents an opportunity to grow the offering and impact of our meal platform with complementary companies that are focused on improving health outcomes and increasing choice for customers. With established operations and serving a customer base that includes seniors and people with disabilities, TLC is a highly values-aligned company that will continue to deliver strong outcomes into the future.”
Founded in 1995 by Jack Barker, TLC was established in Sydney and has expanded to national operations. TLC offers home-style, high-quality healthy meals delivered directly to customers and has steadily built a strong reputation and brand recognition.
Mr Barker reflected “for almost 30 years we’ve built a great business that supports people with a home-cooked meal when they can’t make it themselves. We’ve helped our customers as they recuperated following a hospital stay, or provided a service that meant people could better manage at home as they age. I am proud of what we have achieved, and I am confident that FP Ability is the right owner to take the business forward. I am excited about the opportunity that TLC now has under the FP Ability banner to grow and provide better access to healthy meals, including opportunities to work together with Able Foods.”
FP Ability is pursuing a goal of increasing access to high-quality, nutritious meals that will improve the health outcomes for vulnerable Australians including elderly people and people living with disabilities. TLC brings this goal closer with Able Foods, a business focused predominantly on serving National Disability Insurance Scheme (NDIS) customers with a growing presence in the Home Care Package market, acquired in December 2022.
Victoria explains, “We know that improved nutrition and choice leads to better health outcomes which supports wellbeing, independence, and an overall better quality of life for individuals. For almost 30 years now TLC have been making a positive impact for customers, we are proud to build on Jack’s legacy and increase our presence alongside Able Foods.”
Funding for the acquisition will come from FPIP’s Social Impact Fund I. FPIP was advised by Hamilton Locke and BDO, while TLC were advised by HWL Ebsworth and EP Advisors.
About For Purpose Investment Partners (FPIP)
For Purpose Investment Partners is a not-for-profit social impact investment manager, created to pursue an important mission; bringing private sector capital and capabilities into sizeable businesses and projects to create significant social impact. Established in 2018 by pioneering impact investor Michael Traill AM, FPIP have grown to have $185m of funds under management.
Media contact
Enquiries@fpinvest.com.au| 0405 306 414
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.
