Harry Breidahl

Social Investing: a conversation with Michael Traill AM

April 5, 2022

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?

More articles

What Andrew Thorburn is doing now

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..  


https://www.afr.com/companies/financial-services/what-andrew-thorburn-is-doing-now-20200307-p547vw

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Impact Investing and the Future of Capitalism

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.


Listen via: mhcarnegie.com/the-carnegie-project/2020/3/13/episode-2-part-2-capitalism-20

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Powerbrokers make impact in disability accommodation

The Ramsay Foundation and Melbourne-based Conscious Investment Management have teamed up to invest $48 million into disability accommodation, a specialist housing sector which is gaining scale through the increasing attention from institutional players and family offices.


Playing a key role in bringing the deal together is social impact investment house For Purpose Investment Partners, co-founded by prominent venture capitalist Mark Carnegie and Michael Traill. Former National Australia Bank boss Andrew Thorburn joined the outfit earlier this year as well.


On the receiving end is Summer Housing, an early mover in the emerging sector, which will direct the funds into 60 specialist disability units.

"By investing in disability housing alongside Summer Housing, we can significantly improve our residents’ quality of lives," said Conscious Investment's Matthew Tominc.

"We hope to grow this partnership to continue to help address the acute accommodation under-supply for people living with disability."


The commitments from Ramsay and CIM's Impact Fund – former Swisse boss Radek Sali is one of several family office investors backing the fund – will help fund the creation of purpose-built apartments across a number of developments under way in Melbourne Adelaide and Brisbane.

Already Summer Housing has raised more than $300 million from a variety of sources, with 370 dwellings financed. Institutional investors are moving into the sector: Macquarie is among the early birds along with boutique investment house Lighthouse Infrastructure.The housing is specially developed for people living with a disability, with rental streams backed by the National Disability Insurance Scheme. Industry forecasts are expecting the creation of a $5 billion asset class.


There is a large unmet demand. Some 28,000 people – around 6 per cent of those who fall under the NDIS – will require the specialist housing. Taking into account existing facilities, it is estimated new dwellings will be required to accommodate 12,300 participants in the scheme.


So far some 980 new or refurbished SDA dwellings have been created, with a little more than 4000 dwellings enrolled in the scheme. When fully exercised, the housing scheme payments are expected to total $750 million annually, with just 20 per cent of that being paid out so far.

Summer Housing chief executive chief Dan McLennan pointed out the particularly grim situation for more than 5000 people, all under the age of 65, who are forced to live in nursing homes because there are no other appropriate housing options.


The freshly minted agreement with the impact investment consortium would give at least some of those people "the choice to live on their own, or with someone of their choosing, with independence and with the ability to fully participate in the community", Mr Mclennan said.


While Summer Housing's effort has so far been focused within existing larger apartment projects in capital cities, it is keen to extend that.

"How can we come up with scalable solutions that enable institutional capital to be applied toward creating housing not just in capital cities but throughout the whole of Australia. It is a problem that isn’t confined to our cities," Mr McLennan told The Australian Financial Review.

"We’ve got a long way to go in terms of existing pipeline and the market itself still has a lot of scope for growth. I think every institutional investor we’ve engaged with has appetite for significant scale in the market. They are keen for the production of opportunities to finance."


Article via The Australian Financial Review: https://www.afr.com/property/residential/powerbrokers-make-impact-in-disability-accommodation-20200817-p55miz

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Target Fund Size
$150 million
Fund Structure
Closed-end Unit Trust
Fund Term
10 Years
Return Target (Post Fees)
9-10% p.a.
Real Asset Allocation
40-60%
Management Fee
1.5% p.a.