We applaud the UN Principles for Responsible Investment, the Global Sustainable Investment Alliance and the CFA Institute's jointly released definitions on 1 November 2023, particularly the clarity on impact investing. They say that impact investing “requires a ‘theory of change’ – that is, a credible explanation of the investor’s contributory and/or catalytic role, as distinct from the investee’s impact”.
As this Investment Magazine article suggests, it is not enough to just allocate capital to investees that have a net positive impact, and true impact investment should clearly be able to demonstrate its additionality.
At For Purpose Investment Partners, every investment we make requires a robust theory of change and clear demonstration of the additionality of our capital. With our FY23 Impact Report, we sought to set a benchmark for transparency among Australian impact investment managers, and are pleased to see our work referenced in this article.
Check out our FY23 Impact Report to find out more.
For Purpose Aged Care Australia Chair Toby Hall sat down with Vidit Agarwal on The High Flyers Podcast, to talk about his childhood and school experiences in the UK and South Africa that taught him to question everything, his early career in accounting and investment banking at the Salomon Brothers, his leadership training in New Zealand and transition to CEO and Board roles in Australia.
He discusses his leadership principles, how to have an impact in new sectors, the power of listening and storytelling and helping people thrive.
For Purpose Investment Partners (FPIP) is delighted to announce that it has committed $4.0m in debt financing for the first project in Beacon Hill, NSW, which will fund the construction of three specialist disability accommodation (SDA) houses for 8 NDIS participants, on land owned by the Anglican Church Growth Corporation (ACGC). This transaction has been undertaken in partnership with the Sustainable Development Group (SDG), a mission driven development and advisory organisation established to redevelop the excess land of faith-based organisations.
Construction of the houses has begun and is expected to be completed by early 2024, which will provide disability accommodation in an area of high need, with easy access to public transport, and with shopping precincts and healthcare facilities located close by.
For Purpose Investment Partners Executive Director Tim Shaw said “we are very excited to partner with SDG and the Anglican Church in funding this SDA development. Given high land values in Sydney’s northern beaches, very limited SDA dwellings have been constructed to meet the high demand in this area. We are very pleased to be able to overcome this significant barrier to entry by partnering with mission aligned groups like the landowner ACGC and SDG.“
SDG Chief Commercial Officer Jai Sharma commented “we are delighted that the FPIP team were able to move quickly to fund this development. Working with a values-aligned partner was key in overcoming the complexities of the transaction.”
ACGC CEO Ross Jones added “we think the Anglican Church’s Sydney Diocese has an important offering in the SDA sector where much of the supply of housing stock has occurred on the metropolitan urban fringes because of the high cost of land. We have land right across the Diocese, enabling us to provide SDA in areas relatively close to family support. We have more of these and other social infrastructure projects planned for integration on church land. We look forward to further partnerships with FPIP on those.”
Casa Capace is the SDA Provider, and will source the eight tenants for their state of the art designed homes. Fighting Chance are the supported independent living (SIL) provider for the development.
About Sustainable Development Group
Sustainable Development Group is a mission-driven not-for-profit real estate development and advisory organisation, established to redevelop the excess land of faith-based organisations.
SDG catalyse and bring together aligned consortiums of landowners, commercial investors/funders and long-term tenants to activate sites and drive outcomes that are sustainable for the long-term.
About Anglican Church Growth Corporation
Anglican Church Growth Corporation is an entity within the Anglican Diocese of Sydney whose purpose is to develop strategy and assist in the provision of resources for ministry initiatives involving the acquisition or development of property in greenfield and existing urban areas.
About For Purpose Investment Partners
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.
On 26 July 2023, we welcomed the senior leadership teams of our investment partners and some of the leading professionals in the social impact space to global architecture award-winning Yirranma Place for a day of conversation around leadership for purpose, measuring and achieving social impact, strategic mindsets in uncertain times, and leveraging the power of boards.
From the early days of FPIP our vision has been to collect and connect the investors, partners and supporters needed to meet our goal of building a large-scale social impact investment market in Australia. As we reflected during the day and dinner, the momentum so apparent from the deployment of capital in our Social Impact Fund I was writ large in the engaging and high-quality conversations.
In addition to the investment in Catalyst Education, we now have 65% of capital committed from the $78m SIF I in BlueCHP, AbleFoods and Luson Aged Care, with exciting news on another investment to come.
As our Chair Don Luke reflected, at the centre of what we have the capacity to do is the building of partnerships and supportive networks. These are anchored in delivering financial and social outcomes for our founding investors, working with values and mission aligned investee partners and using the depth and quality of a remarkable and high-powered support network of the board and our extended circle of advisors and friends.
Our Executive Director Michael Traill sat down with Vidit Agarwal on The High Flyers Podcast, to talk about his journey from humble beginnings, to co-founding Macquarie's private equity arm, jumping ship to Social Ventures Australia and the work he is doing now at For Purpose Investment Partners.
He discusses key learnings throughout his career in private equity, impact investing, first fund managers, Capitalism 2.0 and mobilising capital for social good while delivering financial returns, and the role that superannuation funds play in this.
For Purpose Investment Partners is proud to announce the completion of the third SDA property financed by our Social Impact Fund I. This home in North Ryde, NSW was built through our SDA partnership, BlueCHP Housing, in conjunction with community housing provider BlueCHP and National Housing Finance and Investment Corporation (NHFIC).
Developed under the tenant-led ‘Guide You Home’ initiative, the North Ryde property was constructed for three women with non-verbal autism, and was designed with significant input from the families of the three tenants to cater to their specific needs. The design includes a villa on one side of the site, and a two-bedroom house on the other. There is also a secure, on-site overnight assistance room that sits between the two wings, which enables care staff to access both sides of the property.
FPIP Executive Director Michael Traill was present at the official opening on 7 July, along with other members of the FPIP investment team, to meet the families of the participants and to formally open the home with Craig Lee, Chair of BlueCHP.
Michael Traill said, “It was wonderful to speak to the families of the tenants about the new home we have helped to build for their daughters, and to hear just how much of a difference it will make in their lives. Walking through the property, you can clearly see how the design has been tailored to the tenants specific needs, and will enable them to live as independently as possible in what will hopefully be a home for life."
The tenants moved into the house on 11 July.
Toby Hall, Chair of our newly established charitable holding company FP Aged Care Australia (FPACA), talks to The Weekly Source about our strategy in aged care to expand to 5,000 beds and independent living units in three to five years.
“We want to ensure that we are the right size so we can deliver high quality care, and we don’t want to compromise that by just growing for the sake of growth.”
Toby also discusses the attraction for super funds to invest in a solid property assets within the aged care sector, providing good returns for members as well as providing an impact outcome for the community they are working with.
See full article here https://www.theweeklysource.com.au/saturday-why-5000-beds-is-the-magic-number-for-this-new-aged-care-provider/
For Purpose Investment Partners (“FPIP”) is delighted to announce that it has signed agreements to acquire Victorian-based residential aged care provider Luson Aged Care and its three residential aged care facilities and development land (together, “Luson”) from Luson’s existing shareholders.
The acquisition will mark FPIP’s first investment into the aged care sector, which has been a key area of focus for FPIP since its inception in 2018. FPIP is focused on pursuing an aged care strategy that focuses on expanding accessible but affordable offerings in independent living through to residential aged care. Its mission is to develop a model of aged care that achieves excellent health and wellbeing outcomes for residents of all socioeconomic backgrounds, attracts top staff and enables residents to age in place with dignity and choice.
The business and assets acquired will be held by a recently incorporated not-for-profit entity FP Aged Care Australia Ltd (“FPACA”). Funds for the acquisition will come from FPIP’s Social Impact Fund I, FPACA board and management and senior lender NAB. Luson will be the third investment made from the Social Impact Fund I, following on from specialist disability accommodation provider BlueCHP Housing and NDIS meal-delivery business Able Foods.
Luson is a Victorian-based aged care provider, and owns and operates three residential aged care facilities, two in the Geelong region (Eden Park and The Vue) and one in Clyde North, south-east of Melbourne (Bloom). It is also the owner of a development site in Rowville with development approval for another residential aged care site. All three of the existing facilities have been either built or significantly refurbished in the past five years, and all contain single-bed ensuite rooms.
Discussions between FPIP and Luson’s existing shareholders commenced approximately six months, ago and came about as a result of the desire of the existing shareholders to find a new, values-aligned shareholder, with access to capital that would see the business through its next phase of growth, which most importantly will involve the development of the site at Rowville.
Nick Yannopoulos will remain in his role as CEO of the business, which will now also be overseen by a deeply experienced board including Chair Toby Hall (former CEO of St Vincent’s Health Australia and Mission Australia), Louise Greene (leading aged care consultant and former Quality Manager at Southern Cross Care), Matthew Filocamo (former General Manager, Residential Care at RSL LifeCare and Director of Operations at Calvary Health Care) and FPIP Executive Director Chris Yoo (Director of home care provider General Homecare).
There will be no disruption to residents or employees of the business during the transition of ownership, and the business will continue to operate under the Luson brand for the foreseeable future.
The transaction is contingent on receiving the necessary approvals from the Department of Health and Aged Care.
For Purpose Investment Partners Founder and Executive Director Michael Traill said “We are very excited to reach an agreement to acquire Luson, following what has been a multi-year process of looking at various aged care assets to find the right entry point for us into the sector. The aged care sector has had a really tough time over the past few years and we believe that investors like FPIP have an important role to play as stewards of these crucial social assets going forward, ensuring residents get a great experience at an affordable price while also making sure that the business is run in a manner that delivers appropriate risk-adjusted returns for investors and attracts further capital to a sector which badly needs it. The business is in great hands lead by Nick and supported by Toby as Chair, and we will look to support them to grow the business over the long term to create a leading for-purpose operator in the sector, in the mould of what Goodstart is for the early learning sector”.
Incoming FP Aged Care Australia Chair Toby Hall commented “We really like the Luson business and management team, and I’m excited to partner with Nick and FPIP to help build a leading for-purpose provider in the sector. It became clear during the early stages of our due diligence that while relatively small, Luson has the systems and clinical governance processes of a large aged care provider. The three existing facilities are well designed and with all single-bed ensuite rooms, are relevant for today’s aged care consumer”.
Luson CEO Nick Yannopoulos added “We are delighted to have found a new investor that shares the same focus on providing excellent health care outcomes for our residents, as well as providing growth capital to the business. FPIP and the new board members’ depth of experience and commitment to the aged care sector aligns with our vision and values. Our passionate and dedicated staff are looking forward to continuing the journey with FPIP, to provide the Luson experience to more residents who deserve the high level of care that we are intent on delivering every day.”
FPIP were advised by Gilbert + Tobin and PwC, while Luson and its shareholders were advised by Thomson Geer, Deloitte and Amicum.
- ends -
Luson was started in 2015 as a family owned and operated aged care provider committed to creating a boutique environment that is inspiring and engaging, supporting residents’ independence with professional care and love. Luson’s philosophy is to put people first. By creating a culture that prioritises the needs of residents, their families and Luson’s employees, they can provide the highest standards of care for the greatest quality of life.
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.
Victoria Adams (Managing Director, For Purpose Investment Partners)
0414 699 598
Toby Hall (Incoming Chair, FP Aged Care Australia)
0432 130 004
Nick Yannopoulos (CEO, Luson Aged Care)
0477 886 688
In Treasurer is right to connect capitalism with social needs in the Weekend Australian, our Executive Director, Michael Traill, reminds readers to focus on how we can move forward with this innovative idea of Capitalism 2.0, rather than get stuck in an arid ideological debate following Treasurer Jim Chalmers' essay, Capitalism after the Crises.
He asks, "(w)hat can good look like if the strength of market mechanisms are used in concert with explicit measurement of financial returns and social and environmental impact? And what is the potential for expanded capital flows in the many substantial sectors of the economy where the combination of business disciplines for social purpose will drive better outcomes?"
He puts forward two case studies - Goodstart Early Learning and the Newpins Social Benefit Bond - that bring to life the simple power of mobilising capital for measurable good, anchored by the discipline of evidence of performance.
Read the article here.
Making an impact: why Chalmers is backing social investing in the AFR explains social impact investing: the philosophy, its origins, and the huge potential in Australia right now.
For Purpose Investment Partners was built on the premise of what the article describes as “values-based” capitalism, this “third way” philosophy, which attempts to reconcile the right’s belief in markets and the left’s interest in social policies. Our Executive Director, Michael Traill, calls it Capitalism 2.0 - bringing private sector capital and capabilities into businesses and projects to create significant social impact.
The work at the Foyer Foundation is particularly commendable and demonstrates how impact investing can deliver better social outcomes and returns for government, businesses, and investors. As quoted in the article:
Read the article here.
We welcome Treasurer Jim Chalmers' plans to attract banks and superannuation funds to set up a social impact investing fund to tackle entrenched disadvantage in the May federal budget.
Establishing this "wholesaler" was a key recommendation of the government's Social Impact Investing Taskforce, led by our Executive Director, Michael Traill.
Read the full AFR article here.
In Capitalism after Crises, Federal Treasurer Jim Chalmers discusses the role of values-based capitalism in building a more inclusive and resilient economy, pointing to impact investing as one of the new models that can guide us to future progress.
He references our Executive Director, Michael Traill, discusses government collaboration with the private sector, and highlights the role of impact investing. Below are some excerpts from the essay that support our belief in Capitalism 2.0. We look forward to collaborating with the government, businesses, and investors to shape a better society.
“Traill has pioneered this idea of investing with purpose in Australia by using the discipline of market-based activity to transform the availability of capital, and by directing investment to organisations that are delivering genuine, measurable outcomes.
Collaboration is just as important as co-investment. The private sector is key and central to sustainable growth, and there’s a genuine appetite among so many forward-looking businesspeople and investors for something more aligned with their values, and our national goals.
We will try to expand the role for impact investing too. Across the social purpose economy, in areas such as aged care, education and disability, effective organisations with high-quality talent can offer decent returns and demonstrate a social dividend – but they find it hard to grow because they find it hard to get investors. Right now, the market framework that would enable that investment in effect doesn’t properly exist.”
The full essay can be read here.
Michael Traill AM discusses the convergence of profit and purpose with Future Generation CEO Caroline Gurney, as part of their 2fold podcast.
The episode explores a range of topics including:
We are delighted to announce the acquisition of Able Foods, Australia’s leading specialist NDIS meal delivery business, on behalf of investors in our Social Impact Fund I. Previously owned by allied-health services provider Kinela, 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. The full media release is available here.
People living with disability will on average suffer from poorer health and experience substantially higher rates of preventable chronic diseases than others. Challenges in accessing affordable, healthy nutritious food is a key contributing factor to this. Poorer physical health affects other aspects of life, reducing participation in work and the community. Able Foods seeks to break this cycle, providing a diverse range of healthy, affordable meals through an accessible, designed-for-disability service.
These ready-made frozen meals are designed specifically by dieticians to cater for the needs of people living with disability. Every meal is portion and calorie controlled, in line with Australian Dietary Guidelines and the Australian Guide to Healthy Eating, with texture modified options also available for people living with Dysphagia. Able Foods also offers individualised solutions including goal setting, meal plans, meals and clinical support and importantly, education to help customers develop healthier habits over the long term. As a specialist provider to NDIS participants, Able Foods also ensures that all components of its service are delivered in a disability-friendly manner. This includes specialist customer support teams over the phone, automatic claims for the NDIS funding for the meal, ensuring that all deliveries are accessible for customers, and easy to open packaging.
We are excited to build on the work of Able Foods’ founders, Karn Gosh, Spencer Ratliff and Dylan Alcott OAM, with the aim of growing the platform to impact the lives of even more people living with disability. There are a number of growth initiatives already identified in partnership with the management team, led by Spencer Ratliff and Elizabeth Brown, which we will seek to action during the course of 2023. Kinela Chairman Paul Robertson AO and Founder and CEO Karn Ghosh will continue to support the business for a period of time through the ownership transition while For Purpose Executive Director, Chris Yoo, and Managing Director, Victoria Adams, will sit on the Board of Able Foods.
For more information on Able Foods, please click here.
We are excited to formally announce our SDA partnership, BlueCHP Housing, in conjunction with the National Housing Finance and Investment Corporation (NHFIC) and community housing provider BlueCHP. For Purpose (through our Social Impact Fund I) and NHFIC have each committed $20m in funds to the partnership which will go towards building Specialist Disability Accommodation.
The first stage of the project is expected to comprise a minimum of 11 homes to accommodate 17 SDA-eligible residents across development sites in Boolaroo, Ryde, Rydalmere and Lane Cove in NSW. BlueCHP will develop the homes and maintain the facilities on a long-term basis. BlueCHP’s unique 7 Step ‘Guide You Home’ process works with families and carers to ensure the homes are designed and fitted out with features that will enable residents to live more independently and that will assist with the delivery of support for residents with extreme functional impairment or very high support needs. There will also be onsite overnight assistance for all residents.
The second property built under this partnership and the first developed with tenant input through the unique 'Guide You Home' process, is a two bedroom home in Rydalmere which was officially opened by Federal Minister for Housing, Homelessness & Small Business Julie Collins on 5 December 2022, with representatives of each of the partners in attendance. The property is designed to suit the needs of the two young men, who will be calling the property home for the long term. The house is built to the Robust standard of SDA, which is for NDIS participants who have acute behavioural challenges. This follows the first property built in Boolaroo, Lake Macquarie which was completed and tenanted earlier this year.
For Purpose Investment Partners Executive Director Tim Shaw said: “This is an important step for FPIP and in growing our portfolio in housing and social infrastructure. We are proud to be working with SDA specialist BlueCHP and with NHFIC, whose support and ability to provide senior debt is a crucial consideration for us.”
BlueCHP CEO Charles Northcote said: “This is an important step in the provision of disability housing. SDA housing requires long-term investment partners, and we welcome the continued support of NHFIC. BlueCHP has been Australia’s leading developer of SDA housing over the past four years and is seeking to provide 1,250 disability places over the next 5 to 7years.”
NHFIC CEO Nathan Dal Bon said: “We are pleased to support new specialist disability accommodation in our first SDA partnership with BlueCHP. Collaborating with value-aligned social impact financiers like For Purpose Investment Partners enables us to deliver more housing for Australians with specialist needs.”
You can read more at the link here.
As revealed by the AFR, the major banks are at an early stage of considering seed equity funding for a social impact investing “wholesaler”, which may require $200 million of private funding, to be matched by a similar amount from the federal government. The wholesaler, modelled on the UK's Big Society Capital, was a key recommendation of the Social Impact Investing Taskforce's report which while released during the time of Morrison Government has been largely ignored until recently coming to the attention of the Albanese Government.
Our Executive Director Michael Traill, who is chair of the Taskforce, said “There is a real opportunity for the kind of partnership investment we know is possible with government to dramatically grow the social impact investing market."
The full article can be read here.
The new Labor Government has not yet responded to the Social Impact Investing Taskforce's report, but as the AFR indicates, there are high hopes the Albanese Government will be attracted to its suggestions for policy reform, including the creation of a “social investing wholesaler” to direct and coordinate investment.
Our Executive Director Michael Traill, who chaired the taskforce, said government could help to “catalyse and crowd-in more funding” for social impact investing.
Read the full article here.
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.
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
We are pleased to have partnered with Summer Housing as part of a consortium of impact investors that have injected $48m into 60 specialist disability accommodation (SDA) apartments.
Summer Housing has an innovative approach, acquiring 10 apartments within high amenity, larger, and well-located apartment developments and modifying these to enable a high level of accessibility to tenants. An eleventh apartment is acquired and used as a hub to provide 24/7 concierge support to residents. The model supports people with very high support needs to successfully live independently as part of the community with access to education and employment opportunities and most importantly, an ordinary life.
For Purpose Investment Partners Executive Director, Chris Yoo said: "Summer Housing is a uniquely placed provider in a high growth sector, with a strong and scalable model. We believe we have found a partner in Summer Housing that aligns with our culture and values, and we are excited about the opportunity to team up with The Paul Ramsay Foundation and Conscious Investment Management to provide the required capital to catalyse growth in this space."
Download a copy of the Summer Housing - August 2020 Press Release: Download
For Purpose Investment Partners Executive Director, Michael Traill sat down with John Treadgold on the Good Future podcast, chatting all things sustainable business, the new economy and how your spending and investing decisions can have an impact.
Michael Traill is one of the founding heroes of impact investing in Australia. He led a pioneering finance deal in 2009 which bought out the assets of the struggling childcare company ABC Learning. He revived the business as Goodstart Early learning, which remains Australia’s biggest childcare centre group and a foundational story of impact investing in Australia.
Since then the sector has grown, and last year the Federal government set up the Social Impact Investing Taskforce to make recommendations about what they can do to help nurture impact investing and in their wisdom, they made Michael the Chair.
The taskforce published an interim report at the end of 2019 and final recommendations were due to be released in the middle of 2020. But COVID-19 put a spanner in the works, and the report’s been delayed.
Interested to understand what Capitalism 2.0 looks like? Tune in via:
Today we are remembering Labor Senator Susan Ryan AO as a trailblazing feminist.
For Purpose Investment Partners Board Member Wendy McCarthy AO sat down with former Governor-General of Australia Dame Quentin Bryce AD, CVO and Geraldine Doogue AO on ABC Radio to discuss the profound impact that their lifelong friend, feminist hero and gender equality advocate Susan Ryan had on Australian society.
Listen to the full interview via: https://www.abc.net.au/radionational/programs/breakfast/ryan-bryce-mccarthy/12709466
Australia is ready for a more sophisticated market in impact investing according to Michael Traill, who has spent almost two decades encouraging Australians to invest for profit — and good.
As the chair of the federal government’s task force on social impact investing — investment measured by both financial returns and success in a social objective — Traill argues the nation needs to scale up for a potential $60bn market by setting up a “wholesaler” to bring deals to potential investors.
The task force has just presented its final report to the government and while its recommendations are still under wraps, Traill tells The Deal the group has identified the need to develop the “architecture” of the market to offer more products to investors such as superannuation funds, foundations, philanthropists and those prepared to accept a “below conventional risk return”.
“I think there is an appetite for larger scale impact investing,” he says. “There’s been an evolution and a set of developments over the last decade that would suggest that this market is ready for that but it would need some encouragement and stimulation for that to happen.” Till now most investments of this sort in Australia are about $50,000 to $10m but Traill sees potential for a spread of investments with up to $50m at the top end.
He says some industry superannuation funds, such as HESTA, have been proactive, showing financial returns consistent with the “sole purpose test” which directs funds to invest only for the retirement benefit of members.
The task force, set up in the 2019 federal budget to investigate the role the commonwealth should play in developing investment to “provide solutions to address entrenched disadvantage and some of society’s most intractable social problems” released an interim report last December. It identified three existing segments — social impact bonds which provide start-up funds for potential future return; the approximately 20,000 social enterprises of small to medium size with less than $10m turnover; and large scale enterprises of which only about six have an annual turnover of more than $50m. The interim report flagged the need for an early stage foundation; a body to promote more “outcome-based” funding opportunities; and a wholesale fund similar to Big Society Capital in Britain. The latter, it said, was “critical” for growing the sector.
Big Society Capital, was set up in 2012 as a £400m ($727m) fund to support and co-invest with fund managers to invest in social enterprises. It has since signed £540m of investment and attracted more than £1.2bn of coinvestments.
In an interview with The Deal, Traill emphasises that if the market is to scale up, Australia will need impact investment “wholesalers” to operate as intermediaries in the same way as fund managers operate in investment generally. Such a body would also attract people who could “talk a tripartite language” of business, social performance and community, and government. “A lot of the impacting investing space — think social housing, think aged care, early learning, NDIS — has an element of understanding of government policy funding and engagement,” Traill says.
“It becomes a virtuous circle. If you can set up funds that have $40m to $50m in them rather than $5m to $10m, by definition it is easier to hire (top talent).”
The task force found that high net worth funders, foundations and super funds which are already investing in social projects are often hungry for more products. They were saying “we would like to do more, we’ve been quite happy with the financial returns, the visibility of social impact, but we’d like to actually do three to five times the amount of what we are doing”.
“The question is then, how you develop more products?” Traill says. “We think that the answer is to set up the kind of partnerships that support the sustained development of intermediaries ethical fund managers who can originate these opportunities and transactions.” But he says the fragmented market will need support across all three segments from the earliest stage seed funding to mid-sized social enterprises to larger scale projects. This is needed in order to build skills for the bigger projects.
Traill left investment bank Macquarie 20 years ago to become founding chief executive of Social Ventures Australia. Back then the focus was on “venture philanthropy” and the use of performance metrics to bring venture capital disciplines to philanthropy without demanding a return on investment. “What has happened over the 20 years since is a much more sophisticated understanding that there will be opportunities to mobilise even bigger chunks of capital where you can combine reasonable financial returns and social purpose,” says Traill.
At present impact investing totals about $1bn in Australia but Traill suggests it could grow to 2 per cent of the overall local investment market of about $3 trillion. “I don’t think that’s a naive or aspirational target... 2 per cent is still mobilising massive pools of money. It could be a $60bn market. But to get to that point you would want it to be recognised as a mainstream asset class in the same way as private equity or infrastructure or direct property.”
Traill says super funds are interested in investments of $20m to $50m and above. That means they need projects of between $50m to $100m and above. “That is actually a big chunk of the market when you think about aged care, you think about TAFE and further education, early learning childcare, social and affordable housing,” he says. “The NDIS housing (for example) has been effective in encouraging funding into that market. These are clearly multibillion-dollar chunks of the economy.
“Wind the clock forward five or 10 years and I think there will be a very broad church of impact investors. The super funds have to provide reasonable long-dated financial returns and I think there is a transaction opportunity there that will appeal to them. “I think that will be a big market and then you’ll have a spectrum of impact investment that draws on the original pool of foundations, philanthropists and investors who want to generate a return but may be prepared to accept a ‘below conventional risk return’. And that’s already happening.”
The British system was boosted by using “unclaimed monies” and Sir Ronald Cohen, the force behind its establishment, has suggested Australia make similar use of so-called passive funds. But Traill says there are legislative and technical problems in “liberating” these funds in Australia, and the task force has not recommended that idea. Nor is it pushing legislative change to help Australia scale up the sector.
“We think it is much more about government encouragement and enabling,” says Traill. He says the final report addresses two other issues that have held back development of the sector — the need for capacity building for early stage social entrepreneurs who need resources; and “a very specific gap which we came to know as the valley of debt funding”. This refers to the problems faced by a social enterprise which is up and running but is too small to access the next tranche of capital — often between $25,000 to $150,000 — to allow it to grow to the next level.
Full article via The Australian
HELEN TRINCA, THE DEAL EDITOR AND ASSOCIATE EDITOR Helen Trinca is a highly experienced reporter, commentator and editor with a special interest in workplace and broad cultural issues.
For Purpose Investment Partners (“For Purpose”) has announced the acquisition of Catalyst Education and its subsidiaries (registered training organisations Selmar Institute of Education, Practical Outcomes and Royal College of Healthcare) from Anacacia Capital, the founders and current and former staff.
Catalyst Education is a leading private provider of vocational education and training (“VET”) with a focus on key social sector skills including early childhood education and care, aged care and disability care, and although predominantly Victorian-based, also has a growing presence in New South Wales and Queensland.
For Purpose has acquired Catalyst Education to drive further growth of the business, with the goal to become a nationwide market-leading provider of social sector skills training. This is For Purpose’s first acquisition in the Skills Education sector, with the sector being one of its five core areas of focus alongside Aged Care, Disability, Social & Affordable Housing and Mental Health. As a social impact investment firm, For Purpose considers the social impact delivered by its investments equally as important as the financial returns that the investment delivers.
For Purpose Director, Andrew Thorburn said “We are delighted to be investing in Catalyst Education. We think it’s a great business. It really helps people, it has a great reputation and is performing well. We look forward to working with Jo and her team on delivering quality training so that they can continue to have an impact in the community”.
Catalyst Education CEO, Jo Asquith commented “the most exciting thing for us is the alignment of values. What For Purpose are doing and the sectors that it is operating in, what we’re doing and how we’re trying to make an impact in the communities that we deliver our programs in is really well aligned, so I can see an incredibly bright future”.
Anacacia Capital Managing Director Jeremy Samuel added “It’s been great for the Anacacia team to work with Catalyst Education over the past few years helping them to expand and assist so many clients improve their skills. Congratulations to Jo and the Catalyst Education management and we wish them and Andrew and the For Purpose team all the very best for the future”.
For Purpose were advised by Gilbert + Tobin and PwC, while Anacacia were advised by Hamilton Locke and HLB.
Executive Director Andrew Thorburn spoke to John Treadgold at On Impact about our hope to accelerate the social impact investing market in Australia.
Of the opportunity, Andrew said “We feel there’s no dedicated social impact fund or business like ours that exists, certainly not one that’s driving for such scale, where we can really bring private capital to bear to make a real difference to these material issues. And, aiming to make decent returns along the way, there’s no trade-off."
Full article via On Impact
For Purpose Investment Partners and Catalyst Education have partnered with Generation Australia to accelerate employment outcomes in the aged-care sector, providing a unique opportunity for deep social impact.
Generation is a global non-profit that transforms education to employment systems to prepare, place, and support people into life-changing careers that would otherwise be inaccessible, and was designed to complement traditional approaches to employment training.
The partnership will see the launch of an education-to-employment program run by Catalyst in consultation with Generation Australia.
Full article via Hospital and Helathcare: https://www.hospitalhealth.com.au/content/aged-allied-health/news/partnership-launches-program-to-accelerate-aged-care-employment-outcomes-127867902
Aged Care News spoke to For Purpose Investment Partners Executive Director Andrew Thorburn, Catalyst Education CEO Jo Asquith and Generation Australia CEO Malcolm Kinns about our new partnership which will see the launch of an education-to-employment program for Aged Care.
See what they had to say in this article via Aged Care News: https://agedcarenews.com.au/2021/07/07/new-powerhouse-partnership-to-accelerate-skills-development-in-aged-care-sector/
Two of our Executive Directors, Michael Traill and Andrew Thorburn, caught up with The Weekly Source's Saturday editor Lauren Broomham to chat about Capitalism 2.0.
“We call it Capitalism 2.0, which is being more explicit around both the financial and social purpose disciplines. You can apply the logic and thinking, and if you can access the talent at board and management level, you can do that in other areas.”
They also touched on the aspirations for our first fund to invest in solutions to help tackle some of the key social issues faced by Australians subject to exclusion and disadvantage. The fund is targeting a $80 to $100 million first close and a second close mid-2022.
“We think between 40 and 60% will be real, property-backed assets, and the other 40 to 60%, depending on which way you look at it, will perhaps be more operating type businesses,” said Andrew.
See the full article attached or visit the Saturday website: https://www.theweeklysource.com.au/saturday/the-source-saturday/
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.
For Purpose Executive Directors Andrew Thorburn and Michael Traill sat down with James Eyres from the AFR to talk about the first close of our new Social Impact Fund I.See the full article on the Australian Financial Review's website: https://www.afr.com/companies/financial-services/andrew-thorburn-says-impact-fund-s-67m-raising-is-just-the-start-20220111-p59nfi
Investment Manager Harry Breidahl comes from a conventional career in investment banking and private equity for the resource sector so it was quite a pivot to move into impact investing.
In this profile for OnImpact Media, Harry explains how a mine site visit in the Democratic Republic of Congo sparked him to question what career would enable him to connect his work with what he cared about. It was there he discovered Sir Ronald Cohen's "On Impact" and here at For Purpose, we are so glad he did.
See the full profile here: https://onimpact.com.au/impact-profile-harry-breidahl/
Executive Director Andrew Thorburn sat down with Mergermarket to chat about the recent first close of our Social Impact Fund I and continued focus on deploying capital into key social sectors to achieve good financial returns alongside meaningful social outcomes. “You can invest in a good business and have good social impact,” he said.
To read the full article visit https://www.mergermarket.com/intelligence/view/intelcms-dpqrd4 or read here:
In our first construction loan for the development of under-utilised church land, we partnered with the Sustainable Development Group (SDG) and the Anglican Church Growth Corporation to build three state of the art designed homes for 8 NDIS participants in Sydney’s northern beaches.
These homes will be built in Beacon Hill on land owned by the Anglican Church Growth Corporation, providing 6 High Physical Support and 2 Fully Accessible places to participants.
The demand for SDA accommodation in metropolitan areas is underserved, particularly in a market environment where land values are high and continue to rise. In partnering with SDG, a values-aligned NFP organisation, we were able to access excess land in a metropolitan area to provide tenants with accommodation closer to family support, better amenity to services and the community and avoid upfront land costs.
Casa Capace is the SDA provider of these homes, which are architecturally designed to enable quality living for Australians requiring specialist accommodation to live in innovative and adaptable homes to suit participants’ changing needs.
Luson is a boutique residential aged care provider in Victoria, operating 305 beds across two homes in the Geelong area and one in Clyde North. Luson also has a site in Rowville with development approval for another residential aged care facility. All three of the existing facilities have been either built or significantly refurbished in the past five years, and all contain only single-bed ensuite rooms.
The Luson team, lead by CEO Nick Yannopoulos have demonstrated a track record of performance, consistently achieving occupancy of over 95%, including throughout the Victorian COVID-19 waves of 2020/21.
We acquired Luson because we believe that a scale, social purpose aged care organisation run with business discipline can transform the aged care sector, much like Goodstart transformed early learning given the similarity in characteristics between the sectors (highly fragmented, with a significant not-for-profit / family-owned footprint).
We are acquiring Luson through a not-for-profit holding company, similar to the structure we used for the Catalyst Education transaction – this will enable Luson to better attract and retain staff through salary packaging and other employment benefits, and importantly, give residents comfort that their quality of care is the number one priority.
FPIP’s near-term focus it to optimise the existing assets and build out the management team before turning our attention to the growth strategy including the Rowville development and further acquisitions.
Able Foods is Australia's leading specialist meal delivery service for NDIS participants. It 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.
Every Able Foods meal is designed by dieticians and abides by strict portion and calorie control requirements. Able Foods also offers individualised solutions including goal setting, meal plans, meals support, clinical support and importantly, education to help customers develop healthier habits over the long term.
We acquired Able Foods because we believe as a built-for-disability meal provider, it delivers a superior service to competitors and generates better outcomes for customers. All components of its service are designed in a disability-friendly manner, with specialist trained customer support teams offering support over the phone for participants who require assistance, customer deliveries made to pre-selected accessible locations, easy to open packaging, and texture modified meal options for customers living with Dysphagia.
Our initial focus post-acquisition is to build out the executive team and systems infrastructure to ensure that the business continues to deliver great outcomes for customers while improving efficiency on tasks like ordering and payment processing. We hope to then grow the business over time to reach even more NDIS-participants, and will look to potentially push into adjacent sectors such as at home care.
BlueCHP Housing is a disability accommodation partnership with NSW-based Tier 1 Community Housing Provider BlueCHP. This partnership builds on BlueCHP's experience gained from the Hunter Residences Program, the single largest SDA project since the creation of the asset class.
We partnered with BlueCHP due to their strong values-alignment and unique focus on tenant-led SDA development. BlueCHP builds a pipeline of prospective tenants through multiple avenues, and then works with these prospective tenants to see if they can provide them with their desired housing solution in their preferred location based on the available SDA payments and ensuring an acceptable return threshold is met.
We believe the tenant-focused approach is not only more impactful than traditional “build it and they will come” approaches, but it also provides us with sticky tenants who are more likely to view the property as their home for life.
BlueCHP Housing is also focused on the underserved Robust category of SDA, a category representing a cohort of people living with complex behavioural disabilities that has seen less supply due to structurally lower expected returns to investors. We are able to support this cohort without sacrificing on risk-adjusted returns through occupancy de-risking through the tenant-focused approach, as well as access to low cost, long term senior debt through federal government housing bond aggregator NHFIC (who are making their first ever investment into SDA as part of this transaction).
We partnered with Summer Housing on behalf of capital partner the Paul Ramsay Foundation and alongside The Impact Fund (“TIF”) managed by Conscious Investment Management (“CIM) to purchase 72 specialist disability accommodation (“SDA”) apartments in 7 properties. Since July 2020, our capital partner has committed $19m (of total $41m) in capital.
Supply of new housing to meet demand for disability accommodation continues to grow since the creation of SDA and its associated contracted payments under the NDIS in 2016. However, despite these incentives, the residual SDA supply shortfall at ~12,000 places remains significant.
Some operators entering the market are focused on maximising profit by meeting bare minimum standards to receive the SDA income stream. As a mission-driven not-for-profit, Summer’s developments are of the highest quality which we believe will drive ongoing strong demand and lower than industry average vacancy rates. We believe that this focus on quality will enhance, not detract from financial returns as a result. Their model of accommodation (top quality 1/2 bedroom apartments) is strongly aligned with the NDIS philosophy of independence (i.e. vs. group homes).
Catalyst Education is a leading private provider of vocational education and training (“VET”) with a focus on key social sector skills including early childhood education and care, aged care and disability care, and although predominantly Victorian-based, has a growing presence in New South Wales.
We invested in Catalyst Education with a view to building a transformative leader in VET with a focus on key social sectors. With its impressive reputation, strong values-aligned management team and market-leading position in Victorian early childhood training, we saw Catalyst Education as the perfect entry point to build from.
The social impact thesis and theory of change behind the Catalyst acquisition is compelling; Significant skills shortages in the sectors that Catalyst specialises in (early childhood education and care, aged care and disability care) both in terms of absolute quantity, as well as quality of incoming employees, provide a major opportunity for impact additionality by scaling Catalyst’s existing high-quality offering and delivering employers work-ready graduates that ultimately result in better care outcomes for our nation’s most vulnerable people.
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.